On Which Circumstances do Lump Sum Alimony Depend?
Alimony is a payment of money from one party of a divorce to the other party. Both men and women can be ordered to pay alimony to a spouse, and thus the newer term for alimony is spousal support. Each state has its separate laws and guidelines covering the types of alimony available, and lump sum alimony is usually one of the choices. Alimony can be determined in a premarital or post-marital agreement, a marital agreement formed by both parties at mediation, or ordered by a judge at a court hearing. Lump sum alimony is exactly what it says, a lump of money or, in other words, a one-time payment of an ordered amount of money paid immediately following the final divorce decree. Once a lump sum alimony has been ordered and paid, there is no going back to court to try for more alimony. Lump sum alimony is a done deal.
There are several reasons a couple will choose, or a judge may order lump sum alimony.:
· The party who must pay alimony may feel like a different type of alimony, such as permanent or bridge-the-gap, which entails monthly payments, will prolong the contact between the two parties. They simply want to be done with the marriage in all aspects, including ongoing contact with their former spouse. When there are no minor children to continue, the need for the option of lump sum alimony is particularly popular.
· In most states, remarriage, and cohabitation, that is, living permanently with a nonrelative, will forfeit other types of alimony. A person who already knows they plan to remarry or cohabitate will often opt for a lump sum.
· In long-term marriages, usually longer than 20 years, or in late-in-life marriages called gray marriage, persons are older and may not be in a position to pay a monthly amount for very long. A court may compute what would be a fair total amount for, say, 15 years and make this amount a lump sum award. As death ends monthly alimony lump sum alimony for an older party makes sense. Also, the earning capability of a party will usually decline as they age, and a retirement income may not adequately cover an alimony payment.
· If the party who will be paying alimony has an illness that will only become more severe in time and affect their earning ability, a lump sum can make sense.
· Sometimes the party who will receive alimony would prefer a lump sum so they can better their circumstances immediately, such as starting a business or buying a home.
Lump sum alimony, even when it seems like a good idea, may still not work as the paying party must have the money to pay the lump sum. A judge will not rule an amount that would bankrupt or financially harm the paying party. As in any complex legal situation, it is wise to consult a legal professional to learn the options in their particular case. If you are planning a divorce, be sure to discuss your thoughts on alimony right at the beginning of your divorce litigation. Your attorney needs to know upfront what you think will be fair regarding alimony so they can work toward your hoped-for outcome.https://gisondolaw.com/alimony-or-spousal-support/