If you chose to stay home while your spouse worked during your marriage, you may have some valid concerns about your ability to support yourself after your marriage ends. Fortunately, if you meet specific factors, a judge may decide to award you spousal support to help you better manage your post-divorce finances.
Sometimes called alimony, spousal support is money your ex-spouse gives you either temporarily or permanently. If you qualify for spousal support, you have some options for collecting it. Taking one-time lump-sum payment may make sense for three reasons.
1. You receive a large sum of money
If you do not have savings or much cash after your marriage ends, a lump-sum spousal support payment may help you fund a relocation, buy a house or pay for other significant expenses. By contrast, if you opt for monthly payments, you may have to save for months or longer to have a large sum of money at your disposal.
2. You remove uncertainty
Even though your ex-spouse currently may have the financial means to make any type of alimony payments, circumstances may change. If your ex-husband or -wife loses his or her job or experiences any other type of financial decline, a judge may reduce alimony payments or eliminate them altogether.
If you take a lump-sum payment, that simply cannot happen.
3. You move on with your life
If you had an acrimonious marriage, you may never want to hear from your ex-spouse again. Receiving monthly support payments, though, may serve as an unpleasant reminder of your marriage or divorce.
Whether lump-sum alimony is right for you ultimately depends on your circumstances and your goals. Still, simply to move on with your life, you may want to take a lump-sum buyout.