For many people, the idea of alimony isn’t one they take lightly. Alimony awards essentially mean that there is no way to truly be free from your ex-spouse until the spousal support terms have been met. For people receiving alimony, the money is important, but so is peace of mind. Likewise, those who pay alimony may feel they’re never able to be free of the other person or won’t be for a long period of time.
The good thing about spousal support is that there are ways to resolve the payments quickly to avoid getting stuck in a years-long payment arrangement. One of the possible solutions is to have a lump-sum alimony payment.
How does a lump-sum payment work?
With lump-sum alimony payments, the person paying does have to pay the same amount as if he or she completed the support payment terms over time. The difference is that the payment is made all at once, relieving the spouses from the requirement to stay in contact in the future due to spousal support payment needs.
The alimony payment can come in a few forms. It could be in the form of cash payments, an exchange of property valued at the amount the payments should be or through stocks or bonds. Essentially, the person receiving the support needs to be able to access funds from whatever payment is received. In some situations, it’s possible to negotiate away alimony completely in exchange for property or a higher proportion of assets.
Our website has more on spousal support and what it means for your divorce.