Posted on: 26 March 2019Share
Even though many people don't need it nowadays, alimony (or spousal support) can still be ordered if there is a need. When there is a gap between the earning capacity of the two spouses, judges can order that one spouse pay the other in an effort to make things more equitable. There is more than one way to be paid, so read on to find out more.
If you and your spouse are separated and you show a need, the judge can order temporary alimony to assist you during the separation period. This form of alimony ends with the final divorce decree. As part of the divorce settlement, either rehabilitative or permanent alimony can be ordered. Rehabilitative alimony comes to an end upon a certain milestone, such as a college graduation or after full-time employment is found for the recipient. Permanent alimony only ends, in most cases, upon the remarriage of the recipient. The payment for these types of alimony can be in increments or in one lump sum (also called a buyout).
Beware the Drawbacks of a Lump Sum Alimony Payment
1. In exchange for receiving the money all at once, you may have to agree to a lesser overall amount than you would have received in regular monthly payments.
2. Your spouse must be financially able and willing to provide the lump sum payment.
3. The payment can be in the form of property instead of cash. That means you must carefully consider the value of the property, the tax implications, and other issues before you agree to it.
4. If you are not careful with the lump sum, you could lose quite a bit of future security. Invest it, use it wisely, and seek the help of a financial expert to make the most of it.
The Benefits of a Lump Sum Alimony Payment
1. If you do decide to remarry, you won't lose your alimony since you've already have it.
2. It helps shield you from the actions of your spouse. If your spouse suffers from ill heath, a job loss, the loss on investment earnings, etc, you need not also suffer. Having the money now means never having to worry about it again.
3. It provides you with peace of mind. No matter how contentious the divorce might have been, you never need to worry that your spouse will cut off your support due to revenge or retribution.
4. You can start fresh and move on. While all forms of financial support are welcome, taking the payment in one up-front form means you don't have to be reminded of your past relationship any more than is necessary.
5. It allows you to address some important and pressing needs, such as housing or transportation. You can also begin or add to an existing retirement account to help prepare you for retirement.
This form of alimony is not for all, so discuss this with your divorce attorney. For more information, reach out to law firms like Winstein, Kavensky & Cunningham, LLC.