My spousal support present value calculation does not match yours. Why not?
Most likely, it is because we are taking account of taxes on the income earned on the spousal support payments. A financially-equivalent way of saying this is that we are using an after-tax interest rate. The following example will illustrate both perspectives. Consider the following situation:Spousal Support Payment: $15,000/month for 120 monthsPre-tax discount rate (e.g., […]
How can I find the present value (PV) for spousal support (the lump sum buyout amount)?
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 […]
How can I implement a spousal support lump sum payment in Family Law Software?
You can follow these steps to implement the alimony present value (lump sum) in a software scenario. 1. Save As. Save the file under a new name for this scenario. Click Files tab > Save As. 2. Find the lump sum (present value) amount. It is at the bottom of the "more info" screen for […]