Many couples that set out to get divorced here in Ohio often think the hardest part about seeking a dissolution of their marriage is simply realizing that their marriage is irretrievably broken and that splitting up is in their best interest. If you ask any couple that’s been through the divorce process though what’s the hardest part about getting divorced, they’ll readily tell you that it’s reaching an agreement about what do do with their money and how to handle things like alimony.
The amount of money that someone makes isn’t guaranteed. One can be laid off from work or become sick. A natural disaster like a flood or tornado may also occur. These are some of the many factors that prospective paying spouses fear will happen if they end up agreeing to make monthly alimony payments.
Fortunately, there are some alternatives to paying monthly alimony out there. One such option is a lump sum spousal support payment. Both spouses have to agree to pay or accept a larger one-time payment for a judge to order it overly smaller, monthly remittances. This lump sum is generally made to add up to the total amount of potential smaller future payments.
There are pros and cons to accepting a lump sum payments.
One of the plusses associated with this is that a spouse can receive all the money at once rather than receiving several smaller payments over an extended period. Another positive for recipient spouses is that they don’t have to worry about future collection issues if their ex were to lose their job, fall ill or pass away.
There are some negatives associated with lump sum alimony though. One such downside is taxes. The recipient spouse may have to pay hefty taxes on the lump sum alimony payment that they receive. It may be possible for the payout to be classified as a settlement though. If this happens, then you may be able to avoid being taxed.
Every Hamilton divorce case is different. No two Ohio spouses are in the same financial situation, have similar priorities, concerns or abilities to pay. An attorney can review the unique details surrounding your case and help you broker an amicable settlement with your ex that the two of you can feel comfortable with.