What if one spouse does not want to pay maintenance to the other spouse for the next 5 years, but that spouse is willing to just give a lump sum payment right now. Can that be done?
Yes. A spouse can buy-out maintenance. This buy-out may be part of the property settlement that would increase the property received by the spouse seeking maintenance. Before offering a buy-out of maintenance, a spouse must consider two important factors: 1) the present value of the asset and 2) the tax consequences. The value of a dollar today is worth more than a dollar tomorrow. This is because the holder of the dollar possesses the ability to place that dollar in an account that can gain interest. As a result, a buy-out of maintenance will always be less than the total value of the maintenance paid over the long term.
