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Cox Padmore Skolnik & Shakarchy LLP remains ready to serve you during the COVID-19 pandemic. We are prepared to provide you with continuous legal service and uninterrupted communication. We are also monitoring the legal impact of COVID-19 and we are available to discuss any questions you may have regarding the CARES Act, insurance coverage issues, including business Interruption insurance, or other issues. Please see below for a list of our practice areas. You may contact us by the usual means of telephone and email, which is encouraged at this time. We will promptly respond. Video conferencing is also available. In all, our firm remains committed to assisting you throughout this evolving period of legal, business, and safety concerns.

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  4.  | Why would you use lump-sum alimony?

Why would you use lump-sum alimony?

| Aug 30, 2019 | Divorce

Alimony payments are typically made every month, just like child support payments. The idea is that one spouse would have supported the other if they stayed married, and that support would pay the monthly bills. The alimony allows the other person not to fall into dire financial straights after the divorce.

However, you do not always have to do it this way. In some cases, you can opt to use a lump sum instead of the monthly payments. Why would you do this?

There are a few reasons, so let’s explore some of the top ones. For the person getting the money, they may then have a chance to invest their alimony and increase the value. They could end up with more money than if they would have accepted, say, monthly payments for five years.

For the person paying, the lump sum is a way to simply be done with it and put the relationship in the past. They may not want to have monthly contact or pay their ex years from now. They would rather do it all up front and be done with it.

For both couples, it is a way to simplify the process. You do not have to worry about things like job loss or the other spouse requesting a modification of the alimony terms. You don’t have to worry about one person not paying on time or the logistics of actually transferring money. You do it once and that’s all.

That’s not to say that a lump sum is right for everyone, but just to illustrate why you want to consider all of your divorce options.

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