There are two ways to get the present value calculation:
(1) If you have already entered the parties’ income and expenses into the software; or
(2) If you have not.
We will describe each of these approaches.
1. If you have already entered the parties’ income and expenses.
Go to where you enter the spousal support amount. This will be at the bottom of the page where you enter child support data, in a section titled something like, “Spousal support to use in….”
Right below where you enter that amount, you will see the present value. This number will update instantly as you change the amount or duration of spousal support.
By default, the software uses a current 20-year treasury bill rate as the “safe rate,” the discount rate.
2. If you have not entered the case information into the software.
For another approach to this same calculation, click Analysis tab > Calculations > Alimony Present Val.
On that screen, you will be able to override the software’s calculation of the marginal federal and state tax rates, and also you can enter alimony amounts right there, so you can jump right in without having used any other part of the software.