What is a lump sum alimony payment?
Payments made from one spouse to another after a divorce is finalized are known as alimony, or spousal support or maintenance. These payments are made from one spouse to another and the aim is to provide support to the dependent spouse and allow them the opportunity to continue living their life in a standard similar to what they were doing before the divorce.
Dallas residents may only be familiar with the regular alimony payment system. Regular alimony is also called periodic alimony and is paid after a fixed interval. Generally, this payment schedule continues until the receiving spouse remarries, one of the parties dies or a court-ordered agreement modification changes the schedule.
Another type of alimony is known as a lump sum payment. This is a onetime payment of a fixed amount. In this way, the receiving spouse, based on careful financial analysis, receives the amount to which they are entitled in one payment. One might wonder what the benefits of this type of alimony are, and the biggest one may be that the receiving spouse does not have to worry about the other party’s changing financial situation. When the spouse who is making the payments loses their job or for some reason is unable to continue making the alimony payments, they may go to court and ask for a modification in the alimony payments. The receiving spouse may not be financially able to support themselves after losing the alimony income and a lump sum payment can prevent the possible financial problems that arise.
Deciding which path to take on the alimony route can be difficult and involves careful consideration of a number of factors and the paying spouse’s income and receiving spouse’s lifestyle are only two of those factors. An experienced professional may be able to assist Dallas couples going through a divorce determine which course of action to take.
Source: Forbes, “Upfront lump sum payment or alimony? Why some NFL ex-wives are now smiling,” Jeff Landers, accessed on April 28, 2015
Paula Lock Smyth has practiced law in Texas since 1985, focusing on Family Law, Probate, Mediation, and Collaborative Divorce. She is a trained mediator, seasoned litigator, and one of the early adopters of Collaborative Divorce in Texas. Paula is a member of the State Bar of Texas, the College of the State Bar and the Texas Bar Foundation and has served as Past President of Dallas Lawyers Concerned for Lawyers. She was a Master in the Annette Stewart Inn of Court and is a Charter Member of the Collaborative Law Institute of Texas. Her legal knowledge and decades of experience make her a trusted voice on matters that impact families across Dallas and surrounding counties.
