Paying alimony every month can be an irritating link to the past you thought you had left behind. This is particularly true if you have moved on to a new relationship and it rankles that you continue to be legally required to subsidize your ex’s lifestyle.
However, even the recipients can grow weary of waiting for alimony payments that arrive late or end up being short. If only there were a workable alternative to these monthly spousal support issues.
As it turns out, there may be. Lump sum alimony payments might be a good solution for your spousal support dilemmas.
Sometimes, family law courts will give lump sum alimony payers a break and reduce the total owed if the payers can make a single large payment to their former spouses.
Accepting the lump sum payment can be a good way for the recipient spouse to start a new life. They can invest in a business, make the down payment on a new home, use the money to return to school or for any purpose they so choose.
There can be tax consequences depending upon the way the funds are classified. In general, calling it a divorce “settlement” as opposed to “alimony” is more tax-friendly by far. But make no decisions on this matter until you have thoroughly weighed the pros and cons with your tax professional and financial adviser.
If you decide to proceed with a lump sum alimony settlement, the court will still have to approve it. Your Orange County family law attorney can make sure that your agreement follows the correct format and includes all the pertinent details to pass the scrutiny of the court.