Pros And Cons Of A Lump-Sum Alimony Payment
Although Florida courts that oversee divorce proceedings usually prefer ordering periodic alimony payments, sometimes, after a divorce, the judge may order one party to pay the other party alimony in one go. The Court can order an individual to pay a lump sum alimony after one party makes a request, or even in circumstances when neither party made a request. However, a valid reason must exist for the Court to order a lump sum alimony payment in either case. For example, if the payor cannot be relied upon to make periodic payments, the Court may order a lump sum alimony payment. Also, if the payor’s health places the prospect of continual monthly payments in doubt, the Court may order a lump sum alimony payment.
There are pros and cons of a lump-sum alimony payment. It is crucial for both payers and receivers of spousal support to understand these pros and cons.
Merits and Demerits of Receiving Alimony in Lump Sum
One of the greatest advantages of receiving a lump-sum alimony payment is that the payor cannot terminate or reduce alimony once you receive the payment. Basically, after receiving an alimony payment in a lump sum, the money is legally yours. Lump-sum alimony cannot be reduced or terminated if your circumstances change. For example, if you get a job or remarry, you generally don’t have to worry about losing your alimony. Also, if the payor suffers a job loss after they make payment, you don’t have to worry about losing your alimony.
One main disadvantage of receiving alimony in one large payment is that you may end up not properly using the money or find that your circumstances may change in the future. For example, you might end up engaging in impulsive buying habits or find yourself incurring unanticipated medical expenses. Also, receiving alimony payments in a lump sum may erase your eligibility for financial aid. Furthermore, there may be significant tax implications to receiving a large one-time Because of this, it would be best if you thought carefully and consulted an attorney and a financial advisor before requesting the court for a lump-sum alimony payment.
Pros and Cons of Paying Lump-Sum Alimony
One main advantage of paying lump-sum alimony is that it allows individuals, who don’t want to keep being reminded of their exes when making monthly alimony payments, effectively to “cut ties” and move on. Another advantage of paying lump-sum alimony is that you get to fulfill your obligation in one go and lift the burden of periodic payments off your shoulders.
However, there is no chance for you to modify alimony once you make a lump-sum alimony payment. Unlike periodic payments, that allow you to request the court to make modifications if you or the receiver experiences a substantial change in circumstances, a lump-sum alimony payment does not allow you to ask the Court to make modifications. Essentially, you cannot get your money back if, for example, you lose your job, or the receiver gets a job that enables them to be self-sufficient.
Contact a Fort Lauderdale Family Law Attorney
If you are considering requesting the Court to allow you to receive or make a lump-sum alimony payment, it is in your best interest to first consult a family law attorney regarding the pros and cons of lump-sum alimony payments. Contact a Fort Lauderdale family law attorney at Joyce A. Julian, P.A. today to receive professional advice.