If you are heading for a divorce, you are apt to feel some sense of insecurity. After all, not only must you adjust to life without your soon-to-be ex-spouse, but you must also plan for your financial future. Naturally, you may have fewer resources to spend on everyday expenses.
Under certain circumstances, California law allows some individuals to receive spousal support after divorce. Whether you are going to pay or receive spousal support, you may choose to make/receive periodic payments or make/receive a lump-sum one. Here are three advantages of choosing the latter:
- Closure
If you had a fraught marriage or an acrimonious divorce, you may want to quickly move on with your life. With conventional spousal support, you must either send or receive payments regularly. This inherently involves interacting with your ex-spouse. With a lump-sum payment, by contrast, you boost your odds of cutting ties with your former partner. This may help give you closure.
- Peace of mind
There is often some uncertainty that comes with both paying and receiving spousal support. As the payer, you may fear your former partner may seek greater spousal support in the future based upon your enhanced earnings. If you are the receiver, you may worry that your ex-spouse may lose his or her job or otherwise become incapable of continuing to make payments. Either way, a lump-sum payment may help you achieve the peace of mind you want following a divorce.
- Financial stability
Future economic security is often a concern for divorcing spouses. While a regular support payment may give you a steady income, a lump-sum payout may help you reach financial stability. That is, if you receive the payment, you can invest it or otherwise use it to your economic advantage. On the other hand, if you pay spousal support, a one-time payment ensures you do not have to devote future cash flow to ongoing payments.
Deciding whether to take spousal support in regular installments or a single payment depends on a variety of factors. Put simply, you are in the best position to decide what is right for you. Nevertheless, because of the advantages of a lump-sum payment, it is worth considering.