Many California families are led by a single head of household that serves as the breadwinner while their spouse stays at home to take care of the home and kids. If that’s long been the case with your family here in Riverside, then it’s likely that you plan to request alimony from your spouse when you two split up.
Most individuals are familiar with the idea of receiving monthly spousal support payments to help the dependent spouse get the necessary educational or career training necessary to financially support themselves. What many paying spouses don’t realize is that there’s an alternative to making monthly alimony payments. They can simply make a lump-sum one instead.
Lump-sum alimony payments can be ideal for both spouses. They’re desirable from the perspective of the paying husband or wife because they can then divest from their investment account or asset once and for all. If their income increases or they grow their assets, then they don’t have to worry about their ex laying claim.
A lump-sum payment may also be ideal from the perspective of the recipient spouse as well. It allows them to collect what they’re owed once as opposed to having it piecemealed to them. This may allow them to acquire a vehicle, make a downpayment on a house or to afford some larger expense.
There are two primary reasons why a paying spouse may not find the idea of doing a lump-sum settlement a desirable option. The idea of coming up with and giving away a large amount of money at once may not be something that they’re comfortable with. They may like the idea of losing the ability to ask for a reduction of payments down the road either.
One negative aspect to a recipient receiving lump-sum alimony is that a poor money manager could go through the money right away. There could also be tax consequences that need to be explored.
If you’re preparing to divorce your spouse and you’re concerned that alimony is going to become a major ordeal in settling your case, then a divorce attorney can help. They can advise you of the pros and cons of monthly versus lump-sum alimony payments so that you can decide what works best for you.