Illinois Divorce: Pros and Cons of a Maintenance Buyout

 Posted on October 21, 2025 in Divorce

In Illinois divorces – especially high-asset divorces – long-term maintenance or spousal support can feel like a financial tether between exes that will never end. For some, the solution is a maintenance buyout, which is a one-time, lump-sum payment that replaces future monthly spousal support (750 ILCS 5/504). A maintenance buyout is not the right choice for every situation, but in some instances, it can offer tax predictability while firmly closing a door to the past.

Illinois courts tend to be cautious when considering maintenance buyouts, since a lack of legal clarity or using the wrong valuation method can result in disputes down the line. If you are wondering whether a maintenance buyout could be right for you, speaking to an experienced St. Charles, IL spousal support lawyer is your best course of action.

Is There a Specific Statutory Formula for Maintenance Buyouts?

In Illinois, maintenance buyouts are handled by agreement and judicial discretion, rather than a specific statute. The goal of a maintenance buyout is to pay the receiving spouse a lump-sum payment (or a series of larger payments) to end the monthly financial relationship between ex-spouses.

Why Are Maintenance Buyouts Popular in High-Asset Divorces?

A maintenance buyout can avoid ongoing disputes over income changes or modification petitions, offering finality in a divorce. For the paying spouse, the advantages include:

• A clean break with an ex, ending all ongoing financial connections
• Predictable expenses that remove the uncertainty of future modifications triggered by income fluctuations, retirement, or the changing needs of the receiving spouse.
• Protection of future income is a major reason for a maintenance buyout; if the paying spouse’s income increases significantly, the receiving spouse cannot petition for higher support.
• The ability to make career or investment decisions once spousal maintenance is no longer an issue.

The receiving spouse receives a substantial amount of money upfront, eliminating the risk of missed or late payments. This could be particularly important if the paying spouse is close to retirement or has an uncertain income. A buyout provides immediate access to funds that can be used to buy a new home or make long-term investments. Since ongoing spousal support terminates or is reduced if the receiving spouse remarries, a buyout takes that issue off the table.

What Risks Accompany a Spousal Maintenance Buyout?

If the receiving spouse is not a savvy money manager, the lump sum of cash could be mismanaged or prematurely depleted.  If the receiving spouse remarries, cohabitates, or dies, the paying spouse may have paid more spousal support than he or she would have otherwise. In 2019, changes to IRS laws made spousal maintenance no longer tax-deductible for the paying spouse or taxable for the receiving spouse, changing the way spouses look at monthly maintenance.

Despite this, it is necessary to structure the buyout properly to avoid any unintended tax liabilities. If the receiving spouse is also receiving any type of public benefits, a lump-sum buyout can affect eligibility. Since a buyout is often calculated at a discounted rate compared to long-term payments, the receiving spouse may get less money than he or she would have received over time.  

How Do Illinois Courts View and Calculate Maintenance Buyouts?

Courts approve maintenance buyouts only if the agreement is voluntary, knowing, and fair. A fair maintenance buyout uses formulas based on marriage length, often discounting future payments to present value. Tax and risk adjustments (future income uncertainty and risk of modification for monthly payments) are factored in, then inflation and investment growth are considered to ensure fairness for both parties. The final document includes a clear waiver of modification rights and an acknowledgment that the lump sum fully satisfied maintenance obligations.  

Contact a Kane County, IL Family Law Attorney

A maintenance buyout can simplify your financial life, but only if it is carefully structured. Always consult a highly skilled St. Charles, IL divorce lawyer from Mirabella, Kincaid, Frederick & Mirabella, LLC before agreeing to a buyout. MKFM Law serves family law clients at their offices in Kane County, DuPage County, and DeKalb County. Call 630-665-7300 for an initial attorney meeting.