Benefits Of Lump Sum Alimony
If you are going through a divorce and the issue of alimony is looming over your breakup, you should know that you don't have to go with monthly payments. In most cases, you have the option of a big lump sum alimony payment in lieu of the smaller regular payments. Here are some of the reasons you should strongly consider the lump sum route.
You Avoid the Effects of Inflation
Money loses its value over time – this is called inflation. For example, $10,000 can buy you many things today than it would be able to buy after a decade or so. This is the main reason money kept in the bank loses its value over time if there is no interest. Therefore, getting lump sum alimony is better for you because you don't have to suffer the devaluing effect of inflation; you get to enjoy the full value of your alimony.
You Avoid Collection Difficulties
Just because your partner has agreed or has been ordered to give you $2000 every month, it doesn't mean that they will keep their word. Many people have difficulties collecting alimony from their partners who try to hide their assets or incomes. This is particularly true in cases where the alimony payments have been ongoing for a long time, and the payer is "tired." Lump sum alimony helps you avoid such collection difficulties.
You Avoid Your Partner's Future Potential Financial Difficulties
When you opt for periodic alimony, you expose yourself to your partner's future financial difficulties. For example, your partner may succeed in getting the alimony payments reduced if they lose their job or if their business fails. Opting for lump sum alimony shields you from such difficulties.
You Enjoy Full Alimony Even If Your Financial Situation Improves
Even the so-called permanent alimony may be modified or terminated if your finances improve or if you get married. However, you don't have to pay back lump sum alimony even if your financial situation improves or you remarry later on. This means lump sum alimony is the surest way to enjoy your full alimony payments.
You May Afford Expensive Expenditures
Lastly, lump sum alimony is also advantageous because it allows you to buy expensive items or make expensive expenditures that you would not be able to do with periodic alimony. For example, you may use the money to start a business or buy a home. Both would be difficult to do with periodic alimony spread over many years.
For more information, contact your local divorce lawyer.