A Lump Sum Alimony Payment May Be Necessary In Certain Cases

Alimony payments may be a difficult concept to grasp. Alimony may be ordered under different sets of circumstances. Speaking with a family law attorney is the best way to determine if alimony is likely to be ordered in each individual case and to discuss any questions regarding alimony.

In some cases, alimony may be ordered so that the spouse receiving alimony payments may maintain a lifestyle similar to the one he or she enjoyed while married. This may be the case in longer marriages more than in shorter marriages. Another case when alimony may be ordered is when one spouse may require assistance in rehabilitating following a marriage. This may be used to return to school so that they may earn a degree and increase their earning potential.

Another instance in which alimony may be ordered is when rehabilitation is not necessary, but one spouse may require assistance in dealing with the economic demands of the end of their marriage.

Some states allow the spouse ordered to pay alimony to pay all of the money they are obligated to pay up front in one payment. This is called a lump sum alimony payment. The amount of alimony required over the duration of the party's obligation is paid all at once rather than being paid once a month. The party accepting a lump sum alimony payment may face tax consequences, which is something to consider when going through divorce proceedings.

In some cases, the lump sum payment may be less than what the spouse receiving the alimony would have received if they had elected to receive periodic payments. Some consider the lump sum to be more appealing in that they receive all of the money up front and do not have to deal with monthly payments, while others prefer to receive alimony payments each month.

A lump sum alimony settlement may still be payable in circumstances that would normally cause alimony payments to stop. The future status of the spouse receiving the payment is not considered when making this agreement. If a periodic agreement is reached and the receiving spouse is to get remarried for instance, the alimony payments would stop.

Understanding all of the different circumstances or options surrounding alimony may be difficult. It is often helpful to speak with a family law attorney to discuss the matter in detail.