If you are looking at your budget and realize that you’re going to need additional support following your divorce, one option may be spousal support. Spousal support comes in a few forms, which include:
- Durational alimony
- Lump-sum alimony
- Permanent alimony
- Bridge-the-gap alimony
- Rehabilitative alimony
Each of these types has its own benefits. However, if you’re in a position where you have little money to your name and need to have more up front, then it could be appropriate to ask for alimony in a lump sum.
How does lump-sum alimony work?
Lump-sum alimony is paid out all at one time. This payment may be in the form of money or property. For example, if the alimony owed is $150,000 and the marital home is valued at $150,000, then that might be used to cover the alimony while other assets are divided proportionally to what each spouse is entitled to.
Usually, alimony payments are made monthly or semi-monthly when they’re in cash. Depending on how long the alimony is due and how much is expected, it may be better for both parties to agree to a single, one-time payment.
For instance, if the court awards three years of spousal support totaling $25,000, the spouse who is to pay this amount may opt to pay it all at once rather than to have to pay it out each month. The spouse receiving the support may benefit from receiving all of it in one lump sum, especially if they need it for a down payment or to cover living expenses right away.
Can you get a lump sum for all types of support?
Not necessarily. If you have rehabilitative support, for example, then you may not have an exact total for how much is to be paid. You may not have an end date, either. In that case, it may be more beneficial to accept monthly payments or lower monthly payments with a reduced lump sum amount paid at the end of the divorce.
This is something to discuss with your attorney if you are concerned about getting enough financial support at the end of your divorce.
