When is a lump sum alimony the best option?

With lump sum alimony payment one spouse pays their ex-spouse a large sum of money per their alimony or spousal support order. In other words, the ex-spouse receives a one-time alimony payment. This differs from periodic alimony payments that must be paid each month for a specific set of time or until the ex-spouse dies. Deciding to pay an ex-spouse in one lump sum payment may be the best option for anyone who wants to avoid future changes in payments. Typically, with alimony that’s due each month, an ex-spouse can seek a court order to modify the payments. This may result in an increase in payments. Therefore, the ex-spouse agrees to the one-time payment with no additional payments thereafter. Another option when considering the lump sum alimony payment is that the spouse severances all ties—financially with their ex-spouse. In other words, the spouse won’t have to worry about falling behind in their alimony payments if they lose their jobs.  

Divorce which is permanently ending a marriage comes with many complicated choices such as child custody and alimony issues. . For instance, lump sum alimony and periodic payments are treated different by the Internal Revenue Service (IRS). Thus, choosing to pay a lump sum alimony payment over payments that are due each month may require seeking legal advice. A divorce lawyer can help a spouse interested in paying or receiving a lump sum alimony payment by evaluating the circumstances involved.