Many spouses receive a periodic support payment from a former spouse after a divorce. However, this is not always the case. Sometimes a spouse chooses to receive an alimony payment in a single lump sum. This may not be helpful for all spouses, but for people in certain situations, it may be a preferable option.
Whether you could receive a lump sum will depend on whether your spouse has the financial resources to produce an upfront payment. If so, and if you feel you can responsibly handle a large payment, a lump sum may work for you. Forbes explains the different reasons spouses choose a lump sum payment.
Avoiding delinquent payments
Some spouses come to a settlement agreement only for the paying spouse to not follow through with the payments. The spouse may pay for a short while and then stop or never begin the payments at all. This might result in a court fight which can drain money and resources to try to get money from the paying spouse. Receiving a lump sum may prevent this problem from occurring.
Avoiding financial problems
Even if you have confidence in the willingness of your former spouse to make payments, events may cause a sudden negative change in the personal fortunes of your spouse. Your ex may suffer disability from a car accident. An economic downturn may result in an employer firing your former spouse. Taking a lump sum up front may help you to avoid this risk.
Avoiding further courtroom battles
If your former spouse moves to another state, it can become more complicated and stressful to get your ex back into court if your former spouse fails to pay support. Your ex might also go to court to revise the terms of your settlement, which you may oppose. A lump sum may avoid these court battles and save you expense and emotional distress.
