If you’re getting a divorce, one of the things you may want to do is avoid paying alimony over time. It can be difficult to pay alimony month after month, especially if there is no particular end date. Never knowing when you can sever the relationship with your ex is hard and disruptive when you want to move on.
If a monthly reminder of a failed marriage isn’t something you want to deal with, then you have other options. For example, you could opt to pay your spouse in a lump sum. This can be beneficial if you have the savings to do it. You’ll pay your spouse in one payment, avoiding a future where you have to worry about making monthly payments to him or her on time.
Normally, a lump sum can’t be less than the spouse would have gotten if he or she received monthly alimony. However, your spouse may agree to take less because of getting all the money up front. Lump sum payments mean a spouse can do more right away and worry less about finances, which is a good reason to accept slightly less in lieu of a payment up front. Taking a lump sum also gives spouses a chance to invest more at once, saving and even building up cash for future needs.
It’s worth talking to your spouse about the potential to use a lump sum payment to resolve alimony concerns. Whether you receive it or have to pay it, a lump sum payout could be the right choice for your divorce.
Source: FindLaw, “Avoid Alimony Monthly Payment Programs,” accessed May 25, 2018