Some couples go into divorce proceedings already planning for one spouse to receive alimony if the court approves. What they do not usually expect is having to choose how to receive their spousal support.
Many states offer several forms of alimony, such as permanent payments and rehabilitative or temporary arrangements. Connecticut has these types of spousal support and others, including lump sum alimony.
How does it work?
Instead of receiving a set amount of alimony each month, the judge will order the paying spouse to pay a fixed, unchangeable amount of support. The term lump sum does not necessarily mean a one-time payment. Spouses can decide whether to arrange periodic installments (similar to traditional alimony) or opt for a single payment.
What are the advantages?
It will end any association between you and your ex involving spousal support. For example, when spouses fight about alimony frequently, a lump sum arrangement could lead to calmer waters during the rest of your divorce
More reasons to consider lump sum support:
- Certainty: No loss of alimony due to remarriage or income increases
- Financial security: Helps newly divorced people fund a college education to improve income
- Residential security: Allows recipients to afford a down payment when buying a home or a costly security deposit when renting
Unfortunately, there are a few potential drawbacks of lump sum alimony to consider. These arrangements typically amount to less than you would receive over time via monthly installments. You may also face tax consequences if the payment (or payments) substantially increase your taxable income.
Legal guidance can help you select the ideal form of alimony for your unique situation and help persuade the judge to approve your plan.
