Alimony is a critical factor in many divorces. This monetary award may be granted to one spouse to maintain their quality of living following the divorce. The purpose of this type of financial support is to minimize the financial discrepancy that may exist between discovering parties. Generally speaking, there are two options for delivering alimony: through a lump sum payment or periodic installments. Please continue reading to learn the benefits of a one-time alimony payment and how a trusted Pensacola Alimony Lawyer can help you determine if this is the right option.
What is Lump Sum Alimony?
Depending on the unique circumstances of your divorce cases, a judge will determine whether the paying spouse will fulfill their alimony obligation through one lump sum or in monthly installments. A lump sum alimony payment is an alternative to monthly alimony payments. The lump sum payment is a one-time payment equivalent to what would otherwise be periodic payments. Essentially, a spouse will fulfill their entire alimony obligation at once. Following the divorce, the paying spouse would provide the necessary funds upfront rather than over time as a monthly amount.
What Are the Potential Benefits of a One-Time Alimony Payment?
While this may seem like an attractive option, as it offers a clean break from your ex-spouse following the divorce, this option is not feasible for everyone. For many people, paying the total amount of their alimony obligation upfront is a financial challenge. Many people prefer monthly alimony payments because their financial obligation is spread out over time, making it easier to complete their payments. That being said, it’s in your best interest to consult an experienced Pensacola alimony lawyer to ensure this option suits your situation.
One of the numerous benefits of lump sum alimony is avoiding a drawn-out financial obligation to an ex-spouse. Fulfilling your alimony obligation in a single payment will also prevent an ex-spouse from requesting to increase their monthly alimony payments in the future if there is a substantial change in circumstances that warrants a modification to an existing alimony order.
Moreover, the non-paying spouses will have immediate access to their full alimony payment. This means they can use it to fulfill their financial objectives, such as purchasing a home or furthering their education.
What Are the Potential Pitfalls?
Despite the various benefits of lump sum alimony, there are some pitfalls. If an individual is financially irresponsible, they may squander a large payout, leaving them in a financial bind in the future. A lump sum alimony payment can also prevent an individual from being eligible to receive certain public benefits and government assistance programs.
Regardless of whether you’re obligated to pay or entitled to receive alimony, it’s essential to weigh the pros and cons of each delivery method. Please don’t hesitate to contact a knowledgeable lawyer from The Law Office of James M. Burns, who can help you make an informed decision.
