- 9 -
This case calls for a distinction between periodic
alimony and lump sum alimony. The question is
important because the obligation to pay periodic
alimony terminates at the death of either party while
the obligation to pay lump sum alimony * * * does not
* * *
Id. at 95. The Supreme Court of Georgia then defined lump-sum
alimony:
If the words of the documents creating the
obligation state the exact amount of each payment and
the exact number of payments to be made without other
limitations, conditions or statements of intent, the
obligation is one for lump sum alimony * * *.
Id. at 96. The payment may be made either at once or in
intervals. Id.; see also Stone v. Stone, 330 S.E.2d 887 (Ga.
1985). If the above conditions are satisfied, the payments are
considered lump-sum alimony under Georgia law in the nature of a
property settlement and thus not includable in income to the
payee.5 See Winokur v. Winokur, supra.
Having identified the rule under Georgia law, we now turn to
its application in petitioner's case. The exact amount of the
payment ($750,000) and the exact number of payments (single
payment at once) are stated without other limitations,
5 In this manner, the Supreme Court of Georgia applies
substance over form. If the divorce decree states the exact
amount and number of payments without other conditions, i.e., the
remarriage of the payee spouse, the payment will be termed lump-
sum alimony with the duty to pay surviving the payee spouse. The
payment may be made in gross or installments. As long as the
above conditions are satisfied, Georgia law recognizes that in
substance the payment is a property settlement even though
defined as lump-sum alimony.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011