(NEW YORK) — In a significant turn of events, a judge revealed on Friday that President-elect Donald Trump is set to be sentenced for his hush money case on January 10—just over a week before he is expected to take office again. The judge hinted, however, that incarceration is unlikely for Trump.

If this unfolds as anticipated, Trump would become the first president to enter office while carrying a felony conviction.

Judge Juan M. Merchan, who presided over Trump’s trial, indicated in his written statement that he is likely to impose a conditional discharge, which could result in the case being dismissed if Trump avoids further legal issues.

Merchan rejected Trump’s plea to overturn the verdict on the grounds of presidential immunity and his forthcoming return to the presidency. The judge made it clear he found “no legal obstacle to sentencing” Trump and stressed the importance of resolving the case before Trump’s inauguration on January 20.

“Only by bringing finality to this matter can we uphold the principles of justice,” Merchan asserted.

In May, Trump was convicted on 34 counts related to falsifying business records, linked to a scheme to hide a hush money payment to adult film actress Stormy Daniels during the closing days of his 2016 presidential campaign. The payment was made to prevent her from revealing claims about a past sexual encounter with the then-married Trump. He continues to assert that her allegations are false and claims he did nothing wrong.

After Trump’s election victory on November 5, Merchan temporarily halted the proceedings and put the sentencing on hold indefinitely, allowing both sides to evaluate the future trajectory of the case.

Read More: Implications of Trump’s Win on His Legal Affairs

Trump’s legal representatives urged Merchan to dismiss the case, arguing that it might lead to unconstitutional “disruptions” in the new president’s governance.

While prosecutors acknowledged that Trump’s upcoming presidency warranted consideration, they maintained that the conviction should remain intact.

They proposed various options, including pausing the case during his term or ensuring he would not face jail time. One suggestion involved closing the case while formally recognizing both his conviction and pending appeal—an approach that some state courts adopt when defendants pass away during the appeal process.

When Trump takes office on January 20, he will be the first former president to have been convicted of a crime and the first convicted felon to hold the presidency.

In light of his conviction, the 78-year-old faces potential penalties that range from fines or probation to a maximum of four years in prison.

A central issue in the case was how Trump accounted for the reimbursement made to his attorney for the payment to Daniels.

Michael Cohen, Trump’s lawyer, initially made the payment. He later recouped the amount through multiple payments that Trump’s company documented as legal expenses. Most of these checks were signed by Trump himself while he was in office.

Prosecutors alleged that this classification was designed to obscure the true intent of the payments and to help cover up a broader scheme to keep damaging information about Trump from voters during his first campaign.

Trump contended that Cohen was legitimately compensated for legal services, asserting that the effort to suppress Daniels’ story was to safeguard his family’s privacy rather than to influence voters.

At the time of Cohen’s payment to Daniels in October 2016, Trump was a private citizen actively campaigning for the presidency. He was serving as president when Cohen was reimbursed, and Cohen testified that they discussed the repayment in the Oval Office.

Trump, a Republican, has labeled the verdict a “rigged, disgraceful” outcome of a “witch hunt” led by Democratic Manhattan District Attorney Alvin Bragg.

Before Trump’s election in November, his legal team sought to overturn the conviction based on a U.S. Supreme Court ruling from July that granted presidents extensive immunity from criminal prosecution. This request was still pending when the election complicated matters further.

In addition to seeking the dismissal of the conviction, Trump aimed to shift the case to federal court, where he could also claim immunity. However, a federal judge repeatedly denied this request, prompting Trump to file an appeal.

This hush money case stands as the only one of Trump’s four criminal indictments that has moved forward to trial.

Meanwhile, following the election, special counsel Jack Smith concluded his two federal cases against Trump—one concerning alleged efforts to overturn the 2020 election results and another regarding the alleged mishandling of classified documents at his Mar-a-Lago estate.

On a separate note, a state-level case regarding election interference in Georgia is currently at a standstill.