Why some might want a lump sum payment vs. alimony
No one should feel like just a number when getting divorced. Every individual in the process of a divorce should feel like they have the chance to make their split unique to their situation — to their individual goals.
Every person’s reason to divorce is different. Everyone has his or her own hopes for their future, their own needs in order to get by. Finances are just one example of why a divorce needs to be tailored to a specific family. A common alimony setup of monthly payments, for example, might not best serve some parties post-divorce.
What is another option besides an alimony agreement? Some men and women go the route of electing a lump sum payment in the place of alimony. Basically, the higher-earner would pay their ex a large payment as soon as the divorce is finalized. That lump sum payment would replace any monthly alimony and be expected to support the other party after the split.
A divorce financial advisor suggests the lump sum payment could be a strong choice for a couple of reasons. Consider the answers to the following questions:
- Could your ex’s financial situation significantly change for the worse and lead to less alimony down the road?
- Is your ex reliable? Would he or she respect the support agreement and get the full amount to you on time on a regular basis?
Whether a lump sum payment or alimony is best for you also depends on you and your habits. Would you be too tempted to splurge if you had a large amount of money available to you all at once? Would you be proactive in protecting or even trying to grow your money?
One divorce arrangement does not fit all. Talk to your Maryland divorce lawyer about financial options in the face of divorce and whether there is an option that would better serve your interests and overall security.
