The discount rate is the assumed annual return on investment. There's no single "correct" rate; it's a key point of negotiation. A **Conservative (3%)** rate assumes low-risk investments like bonds. A **Moderate (5%)** rate might reflect a balanced portfolio or index fund. An **Aggressive (7%+)** rate assumes higher-risk stock market investments. The recipient typically argues for a lower rate (larger buyout), while the payor argues for a higher rate (smaller buyout).

For divorce agreements executed after December 31, 2018, alimony payments—whether monthly or in a lump sum—are generally not a taxable event. The money is transferred tax-free. However, tax laws are complex and can change. It is **essential** to consult with a qualified tax professional or CPA to understand the specific tax implications for your situation.

No. This Alimony Buyout Calculator provides a mathematical starting point for negotiations. The final buyout amount is ultimately determined by the agreement between both parties, often with the help of their attorneys or a mediator. Other factors, like tax consequences or the payor's ability to liquidate assets, can influence the final number.