Alimony, or spousal support, is an essential factor in many divorces. This monetary award is granted to a financially dependent spouse to limit the unfair economic effects of a divorce. Essentially, this type of financial support is intended to minimize the financial discrepancy between divorcing parties and assist the dependent spouse in maintaining their lifestyle. If you’ve been ordered to pay alimony to your ex-spouse, you may wonder whether you can make a one-time payment to fulfill your obligation. Unlike traditional periodic payments, the court may permit a lump sum payout. Please continue reading to learn about lump sum alimony and how our knowledgeable Monmouth County Spousal Support Attorneys can help determine if this option is right for you.
What is Lump Sum Alimony?
Lump sum alimony is a one-time payment one spouse makes to the other as part of their divorce settlement. Unlike traditional alimony, which is paid in monthly installments, lump sum alimony is a fixed amount paid all at once. Essentially, this one-time payment is equivalent to what would otherwise be monthly payments, meaning a spouse fulfills their entire alimony obligation with this alternative method.
While this may seem appealing, as it can provide financial certainty and a clean break from your former spouse, it’s crucial to understand that this type of alimony is not appropriate or feasible for everyone, as it can be financially challenging to pay the total amount of your alimony obligation all at once. Therefore, you should consult an experienced Monmouth County spousal support attorney before you sign off on this option to ensure it’s suitable for your particular situation.
What Are the Benefits of a One-Time Alimony Payment?
Although this may seem obvious, one of the most significant benefits of lump sum alimony is avoiding a prolonged financial obligation to your former spouse. This option will allow you to prevent drawn-out communications with your former spouse. If you’re forced to communicate with your former spouse after the divorce, it can make moving on with your life much more complex and increase the likelihood of disputes arising.
Fulfilling your alimony obligation in one single payment also prevents your former spouse from requesting an increase in monthly alimony payments in the future if your income increases. It’s crucial to understand that a substantial change in either party’s circumstances can warrant modifying an existing alimony order. Moreover, with a single-alimony payment, you are not tied to your former spouse through ongoing financial obligations. This means you can avoid future complications if you are unemployed and cannot afford maintenance payments.
As you can see, there are numerous benefits to lump sum alimony. While New Jersey courts generally don’t allow a lump sum payment for alimony, nothing prevents the parties from including an amount in their divorce settlement intended to substitute for alimony, and both parties then waive their right to alimony. If you’re considering lump sum alimony over monthly alimony, please don’t hesitate to contact a proficient attorney from the legal team at Paone Zaleski & Murphy, who can help protect your interests.
