Lump Sum Alimony

Inheritance received by a spouse prior to the divorce or during the pendency of the divorce may also be ordered as the source of lump sum alimony. However, lump sum alimony may not be awarded from an inheritance or other source of funds that the obligated party is expected to receive. The amount must already be a part of the payer's estate.

Another source of funds that may be used to satisfy a lump sum alimony award is a retirement plan or retirement account like a 401(k) or IRA. If a court orders that lump sum alimony must be derived from this type of source, the court will enter a qualified domestic relations order (QDRO) so that the fund(s) may be split without incurring the tax consequences. QDROs are judgments, decrees or orders that assign benefits from a retirement plan or fund to a spouse, a former spouse or a child of the plan participant. The order or decree must concern alimony, child support or marital property rights. QDROs require complex and technical requirements to be met in order to be successful. Thus, if a QDRO may be necessary in your case, contact a one of our divorce lawyers with experience dealing with QDROs as well as other ways to facilitate alimony and property settlement.