One component of some divorces is alimony. While many divorces don’t have this, the ones that do require careful thought. For the person who is going to be responsible for paying, making sure they can actually afford the payments is imperative. It is a good idea to sit down and come up with a budget that includes the proposed amounts. This lets you review how making the payments (or receiving them) will impact your finances.
We know that most people who are going through a divorce don’t really want to have to make financial support payments to their ex. Still, when it is appropriate, it is a good idea to review your options. For many people, there are two primary options. One of these is to make one lump sum payment. The other is to make monthly payments, or regularly occurring payments on a set schedule.
While you might think that you will fare better with a lump sum payment, you have to remember that you don’t necessarily get a discount for doing this. Instead, you may be paying the equivalent to what you’d be responsible for if you made regular payments to your ex.
One thing that makes a lump sum payment easier is that you don’t have to worry about what your ex has going on in life. Since you make the payment at the time of the divorce, you don’t have to watch to see if they are living with a significant other or if their financial circumstances greatly change. If you are making regular payments, your ex moving in with someone is a concern since alimony orders could potentially stop if this occurs.
We realize that you have a lot to think about. Taking a look at your finances can help you to determine exactly what you can do about these payments.