What Divorcing Parties Need To Know About Lump Sum Support
No one wants to see people suffer economically during and after divorce. To help prevent a gap in economic disparity, certain forms of support may be ordered. Even though more women than ever are earning income, they still often lag behind in pay and may be the one who ends up staying home from work to care for the children of the family. Not only does that situation call for spousal support, but anytime a party won't be able to earn enough income to pay for their needs, the judge may order spousal support regardless of gender. There is more to spousal support than some know, so read on to find out more about a particular type of support that involves lump sum payments.
The spouse that needs support must demonstrate why. That might mean bringing up matters like education, job training, illness or disabilities, and more. In addition, the funds have to come from somewhere. The providing spouse has to be able to provide support based on their income without it affecting any ordered child support.
Spousal support (or alimony) may be ordered as soon as the parties begin to live apart. When support is ordered during the separation period, it's known as temporary support.
Rehabilitative support is more common than permanent support. Rehabilitative support is ordered to allow a party to attend job training, finish a degree, or just find a job. The support ends not at a certain time but when a certain milestone is achieved.
Permanent support may be ordered for older parties who are unable to find a job as easily or for those with an illness or disability. This form of support may continue until the receiving party marries or passes away or until the providing party passes away.
Support may be ordered to be paid on a regular basis, such as once a month, or it can also be paid all at once in a lump-sum known as a buyout. With a buyout, the total amount may be somewhat less than if the payments were regular. In addition, the responsible party must be able to afford the full support payment in advance. Taking the full support payment in advance might have tax implications so be sure to discuss matters with some experts before you agree. The benefit of a buyout is a lot of cash (or property) that can be used to make big purchases or investments. Additionally, you are free to marry without losing future funds.
Get more information about lump-sum spousal support from a divorce lawyer.