Alimony (or spousal support) is often considered the price one must pay to extricate themselves from an unhappy marriage. Traditionally, alimony came in the form of a monthly check or direct deposit to your bank account.
But another possibility exists regarding spousal support. Lump-sum alimony can sometimes work out better for both spouses in a divorce. Here’s why.
It eliminates the monthly anxiety
Some exes are reliable about mailing that check or prearranging those monthly direct deposits to arrive like clockwork. Others, not so much. If your ex is one of the latter, receiving a lump-sum alimony payment wipes out that worry.
If their financial future bottoms out, you’re covered
We live in economically uncertain times where businesses can go through many unexpected changes just within a single year. If your ex loses their job or gets sick or injured, that money you depend on could stop.
You could use it as a stake for your new life
Use it as a down payment for affordable housing. Invest it in your own small business venture. Whatever your most pressing financial need may be, this lump sum could offset a lot of heat.
Learn about the tax implications
There are downsides to lump-sum spousal support, too. The biggest one could be the higher tax bracket it will force you into. But that is not the only fiscal difficulty you could face, so make sure to seek advice from your tax professional.
Once you decide what type of financial settlement most meets your needs, your attorney can negotiate with your soon-to-be ex’s counsel to hash out an agreement.