Spousal support after divorce, also known as maintenance, can be provided on a temporary or permanent basis. When it seems likely that a judge will agree to permanent support, the recipient may have a choice between monthly payments or a lump sum. Arlington Heights maintenance attorneys can provide insight into the advantages and disadvantages of the second option.
A Financial Cushion
A lump sum payment provides an immediate extra financial cushion for the recipient. The person might be able to continue living in the family home or buy an even nicer house or condo. Going to college or becoming an entrepreneur may be possibilities. Another option could be using the money to help pay for a university education for sons and daughters.
A Risk for the Recipient
A risk with the one-time option is the possibility of irresponsible spending with this large amount of money. Without a structured schedule of monthly income, the recipient could spend everything on a risky venture and lose everything. Arlington Heights maintenance attorneys want clients to be clear on their plans for the funds.
An Important Consideration
The spouse deciding which plan to pursue might want the one-time option if the payer is older or in poor health. If that individual passes away, monthly payments end. In contrast, maintenance in a lump sum leaves the recipient with adequate financial support if that happens.
The Risk of Overpaying
A reason the person responsible for support might dislike the idea is the risk of overpaying. If the recipient remarries, monthly payments stop. This individual is not responsible for returning any percentage of a lump sum, however.
To learn more, visit the Law Office of Fedor Kozlov, P.C.