Your spouse has enough money to pay you all of the alimony that is ordered at the time of the divorce. Do you want that lump sum, or are you better off taking the monthly payments?
Below are three reasons to take that lump sum and be done with it.
1. You and your spouse can part ways.
Accepting and paying alimony connects you with your ex for as long as it continues. Do you want to touch base once a month? Maybe you’d be happier to take the money and go your separate ways for good.
2. You don’t have to worry about your ex’s job.
Maybe your spouse makes $200,000 per year right now. What if he or she loses that job? If so, your alimony payments could change. Taking the monthly payments gambles that your spouse will stay gainfully employed for that long and won’t see a reduction in pay or a serious career change. Taking the lump sum means you get all of the money no matter what happens five – ten years down the road.
3. You know that your ex will pay.
Some people dutifully pay alimony at first and then stop. As the years go by and you see each other less and less, your spouse could start to resent the payments. Stopping alimony payments violates the court order, but it happens. Taking the lump sum could help you avoid a messy legal situation in the future.
A lump sum can’t always be used and isn’t always affordable, but it shows why it’s important to consider all of your financial options when getting divorced.
Source: Forbes, “Women, With Shrinking Options For Alimony, A Lump Sum Can Be Your Best Strategy,” Jeff Landers, accessed Aug. 31, 2017