SHOULD YOU CONSIDER A LUMP SUM ALIMONY PAYMENT?
Call Us Now: 951.693.3132
If you believe that you are in a position to receive alimony from your soon-to-be ex-spouse, you may want to consider whether to negotiate for a lump sum alimony payment. There are notable benefits as well as certain drawbacks to a lump sum payment. Firstly, if a judge determines that you are owed alimony, your spouse will be ordered to make monthly payments to you – usually for a set amount of time. If you want a lump sum payment, you will need to negotiate it with your spouse and have him or her agree.
What are the benefits of a lump sum alimony payment? The biggest benefit is that you will get all of the money upfront. You never know what will happen in the future. Your ex-spouse may lose his or her job or experience a health crisis and be unable to keep up on alimony payments. If he or she falls on hard times, your spouse may be able to convince a judge to lower your alimony. Additionally, if you get a job or remarry, your ex-spouse can petition the judge to lower or eliminate your alimony payments. A lump sum alimony payment may also allow you to buy out your ex’s equity in your home so you can keep the home or give you the down payment you need for a new house.
There are drawbacks to requesting a lump sum alimony payment. Often, you’ll need to lower the total amount of the payment as an enticement for your ex-spouse to agree. The alimony payment is also considered income, so you could be looking at a high tax bill this year, especially if the lump sum puts you in a higher tax bracket.
Whether or not you should request a lump sum alimony payment is something you should discuss with your divorce attorney. If you are looking for a knowledgeable and experienced divorce attorney in Temecula, contact Albrecht & Albrecht for a consultation.