Lump-Sum Support vs. Regular Alimony Payments: Determining What’s Right for You
If you’re going through a divorce, you might have to choose between regular alimony payments or a lump-sum amount. Your choice can have a long-term impact on your finances, so it’s important to know the differences before you make a decision.
Understanding Alimony Payment Options
Married couples don’t always play an equal role in supporting their household. This means that when a marriage ends, the spouse who traditionally paid for most or all of the household expenses might be ordered to provide the other spouse with support payments.
How much money one spouse owes the other is calculated by considering many factors. Ultimately, the receiving spouse must decide whether to take the money all at once or accept it in the form of ongoing payments that arrive in their account each month.
Taking a lump-sum support payment brings many benefits. You get all the money at one time, which gives you options like investment or buying a new home. You also get to avoid many of the inconveniences of monthly payments.
A lump sum amount means you don’t have to report income changes or track down a spouse who stopped making payments. Without a lump sum amount, taking out a life insurance policy on your ex-spouse might be necessary. Having a policy ensures your payment will continue in the event of your former spouse’s death.
Regular alimony payments mean that the support payments due to you from a former spouse will be made as monthly payments. Alimony is usually only set for a finite amount of time. Permanent alimony is often reserved only for couples who have been married for a long time.
One of the benefits of opting for regular alimony payments is that you have a reliable source of monthly income. You don’t have to worry about managing your money as carefully because you have a monthly income that you can depend on.
Choosing the Right Support Payment Structure in a Divorce
The right type of support payment structure in a divorce often depends on the circumstances of the spouse receiving the payments. If budgeting and money management are a concern, alimony can provide security and stability.
If you have concerns about your spouse’s ability to reliably make their alimony payments, opting for a lump-sum amount might be wiser. Ultimately, consulting a divorce lawyer who understands the specifics of your situation is often the best way to identify the payment structure that is right for you.
Consult an Oakland County Divorce Lawyer Today
At Gucciardo Family Law, we understand that the decisions you make during a divorce will impact your finances and standard of living for years to come. We also know that these big decisions can feel overwhelming, and it’s often hard to know which choice to make.
We work with you at every step of your divorce, ensuring you understand your options and the pros and cons of each choice. Call Gucciardo Family Law today to schedule a consultation with an experienced divorce attorney in Oakland County, MI.
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