Alimony is one of the most contentious issues couples face when dissolving their marriage. Alimony, also known as spousal support or maintenance, is a type of financial support awarded to a dependent spouse to maintain the quality of living they were accustomed to during the marriage after the divorce. Regardless of whether you’re entitled to receive support or obligated to pay your ex-spouse, you may be wondering whether it’s better to reach an agreement on lump sum alimony or with monthly payments. Please continue reading to learn how one-time alimony payment works and how a knowledgeable Suffolk County Alimony Attorney can help you make an informed deicsion on which option is better suited for your particular needs.
What Are Lump Sum Alimony Payments?
Firstly, it’s crucial to understand that alimony isn’t automatically awarded. If you and your ex-spouse are employed and have comparable incomes, the court will unlikely award alimony as there’s no need for financial support after the divorce. However, the court is more likely to award alimony if the divorcing couple has a significant financial discrepancy. They will determine if the lower-earning spouse needs this support and if the higher-earning spouse can afford it. If the court awards alimony to a dependent spouse, they can decide on monthly or lump sum alimony.
Lump sum alimony is a type of spousal maintenance that fulfills a person’s entire alimony obligation with one lump sum payment. Essentially, it is paid in one payment instead of period payments over a specific time. However, the court will have to approve a lump sum payment agreement. The total sum must equal the total amount of future monthly payments. It’s crucial to understand that every case is different, meaning what may work for one couple isn’t always appropriate for another. Therefore, fulfilling an entire alimony obligation is not always possible, as the paying spouse may not have enough money to pay off the total amount at once. In this case, the higher-earning spouse must pay monthly alimony installments.
What Are the Benefits of a One-Time Alimony Payment?
This alternative to making monthly payments to a dependent spouse has many advantages. One of the various benefits of this option is that you can avoid a drawn-out obligation to the other spouse and avoid monthly communications. Another significant benefit is that you won’t worry about your ex-spouse missing future payments. This means you can use the funds to start afresh, purchase a home, or pay off divorce-related debts immediately. Furthermore, the paying spouse can significantly benefit from this option because if they ever found themselves unemployed or facing financial hardships, they wouldn’t have to worry about making monthly alimony payments.
Whether lump sum alimony is better suited for you than monthly payments depends on several factors. Please don’t hesitate to contact our adept Suffolk County alimony attorneys, who can help determine if lump sum alimony suits you. We are prepared to represent your interests today at The Law Offices of Susan A. Kassel, P.C.
