Is it better to take lump-sum alimony?

by | Apr 3, 2019 | Spousal Support | 0 comments

Lump-sum alimony can be a good choice for those who need money now, just as it’s a wise choice for those who don’t want to be tied down with monthly payments.

As someone who is receiving alimony, you may not like the idea of allowing your ex-spouse to pay you monthly support payments, because there’s always the risk that they won’t pay. The amount may also be small each month, even if it’s a large amount of money when all is said and done.

What are some benefits of taking lump-sum alimony payments?

There are a few benefits to taking a lump-sum payment. First, you might get more money than if you took monthly payments due to the potential for investment. Second, you don’t have to worry about your ex-spouse failing to make payments.

Are there any downsides to taking alimony in one lump sum?

There are a few negatives when it comes to taking a lump-sum payment. The major disadvantage is the tax consequences. You will have to pay taxes on the full amount that year, which could end up costing you more in taxes than if you take payments over time.

The other downside is that you do get the money all at once. If you’re not cautious about how you use it, it’s easier to spend a large amount of money all at once rather than receiving smaller amounts over time.

These are some things to think about if you’re seeking alimony. The right payment schedule for you could be a lump sum or monthly payout, depending on your circumstances.

*The above is not meant to be legal advice, and every case is different. Feel free to reach out to us at Hoover Krepelka, LLP, if you have any questions. Information contained in this content and website should not be relied on as legal advice. You should consult an attorney for advice on your specific situation. 

Visiting this site or relying on information gleaned from the site does not create an attorney-client relationship. The content on this website is the property of Hoover Krepelka, LLP and may not be used without the written consent thereof.


Pin It on Pinterest

Share This