When working out a divorce settlement, one of the most divisive components of reaching a fair agreement is the matter of spousal support. The issue can be enormously frustrating for both parties, especially the party who faces making ongoing payments to a spouse he or she would like to sever ties with as much as possible. While it is unlikely that you can circumvent your responsibility to spousal support altogether, you may be able to keep from making ongoing payments.
In Texas, it is possible to make a lump-sum alimony payment to settle the matter once and for all. Of course, this option has its advantages and drawbacks. The primary advantage is freeing yourself from making ongoing payments for an indefinite period of time, especially if you have the resources to finish the matter on hand. For those on the receiving end of such an arrangement, it is generally preferable to receive a larger, one-time settlement and not have to worry about pursuing payment later if the owing party becomes delinquent.
There are significant drawbacks for both parties, however. Obviously, the thought of writing a single check equal to years of potential spousal support may give some individuals hesitance. For recipients, they must remember that alimony is taxable, so receiving it all at once can create significant tax obligations.
If you believe that a lump-sum alimony payment may be the best option for you, do not wait to reach out to an experienced attorney who can help you create a plan to settle your divorce once and for all and usher you into a new season of life.
Source: findlaw, “Avoid Alimony Monthly Payment Programs,” accessed May 04, 2017