Block on Trump's Asylum Ban Upheld by Supreme Court
Video of a Tennessee man breaking into joyous dancing after making his last alimony payment to his former spouse has generated over 400,000 views since being uploaded to YouTube.
Memphis resident Ed Smith marked the occasion of making his final spousal support payment to his former wife at a local bank with an array of dance moves all caught on video, reports the New York Daily News.
Why was Smith so excited about making his final payment?
Alimony, also known as spousal support, are payments made by one former spouse to another following a divorce. Alimony payments can be based on an arrangement agreed to by the former spouses or ordered by the court.
In Smith's case, the 54-year-old and his former wife of 12 years came to an agreement under which Smith would pay her $825 a month for a year following the couple's divorce. Smith told the New York Daily News that he had been working 60 hours a week at his job as an insurance agent to afford the payments. In the video, Smith is shown making the last of the 12 deposits, saying "[t]hank you Jesus, I am free at last," before handing over the check to the teller and throwing himself to the floor to engage in what he characterized as "break dancing."
Alternatives to Monthly Payments
As shown by Smith's glee at making his last payment, monthly support payments can be a significant burden on the spouse required to pay support. To avoid having to make monthly payments, spouses may agree to a lump sum alimony payment in which the entire alimony amount is paid in one payment following a divorce.
Opting for the lump sum payment option may have tax consequences. Lump sum payments labeled as alimony may be taxed. However, lump sum payments labeled as settlements may help reduce or eliminate the tax burden. An experienced divorce attorney can help determine what option is best suited to your situation.