You and your spouse are getting a divorce and you know they’re going to have to pay alimony. After all, you quit your career to raise the children, take care of the house and support your spouse’s career — and that was years ago.
You counted on your spouse’s support, and now you’ll get, at least for a time.
Monthly payments or lump-sum alimony: Which is better?
Your spouse doesn’t want to make monthly payments because they just want to put this behind them. They offer to pay a lump sum that is worth the value of all of those payments. Should you take it? Here are a few reasons why this can be beneficial:
- With inflation, the value of money trends down. Taking money today means it’s worth more. You can also invest that money if you so choose, increasing the value even more.
- The lump-sum payment guarantees you will get paid. You don’t have to worry about fighting with your ex over future payments.
- You don’t have to worry about modifications. If your ex loses their job, they can ask for the monthly payments to be modified. With a lump sum, they can’t get that money back. You could maximize your earnings.
As with your spouse, the lump sum puts this behind you. If you’re really looking to cut ties and start your own life, this can be a better way to do it.
Naturally, lump-sum payments also have their drawbacks, and you may want to take the monthly payments. The best solution is different for everyone. You just need to know what legal options you have so you can take the proper steps during your divorce.