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A lump sum alimony payment may be preferable to monthly payments

On Behalf of | Jun 27, 2018 | Alimony

Some divorces come with the possibility of having to make support payments to your ex for a while. When this is the case, you have to work to make sure that you are making the best decisions possible about these payments. One thing that you can’t do is to just ignore the order for alimony and not make the payments.

In some cases, such as when there aren’t any children involved, the only tie that might bind a person to his or her ex is the spousal support. Breaking that bind might be desirable. When this happens, you might have the option of making a lump sum alimony payment instead of having to make monthly payments to your ex.

There are ups and downs to a lump sum payment for this. One of these is that you need to have the available funds to make the payment without putting yourself in a bind. Another is that there might be tax implications, so finding out about this is necessary before you decide to proceed this way.

Most alimony orders have a clause in them that stops the payments if the recipient gets married or moves in with a significant other. With a lump sum payment, you don’t have to worry about this since the payment has already been made.

You should remember that a lump sum payment needs to equal what the recipient would get through monthly payments. Coming to this amount might be challenging so make sure that you pay close attention to what is being agreed to before you officially agree to it.

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