Monthly alimony payments represent a significant financial strain for the individual required to make them. Some spouses try to avoid the prospects of having this monthly obligation out of the fear that they may not be able to make the payments on time, which could land them in contempt of court or in breach of a divorce agreement resulting in serious financial and legal consequences. Fortunately, there is an alternative to monthly alimony payments.
Making a lump-sum alimony payment
In lieu of monthly alimony payments, some spouses may seek the alternative of making a one-time lump-sum alimony payment to settle their alimony obligations once and for all. According to North Carolina General Statutes § 50-16.7, spouses can make their alimony payments via income withholding, regular payments, through the transfer of personal property or through a lump-sum payment.
As such, spouses may want to request permission from the court if they prefer one of the above payment options over another. The court, however, will have ultimate discretion in choosing which of these payment varieties is most appropriate.
What are the benefits of lump-sum alimony?
There is a clear benefit for the recipients of lump sum alimony, which is that they get all their money immediately, without any reduction. This means that they receive more money because, if the alimony is paid over years, they will not collect interest on the unpaid sums. One dollar today is worth a great deal more than a dollar five years in the future.
Another benefit is that collections issues requiring court involvement will not be an issue. There is no chance that alimony payments will be made late either because all the payments will have been made in advance.
Talk to your divorce attorney about a lump sum alimony payment
North Carolina spouses who want to learn about whether they could qualify for a lump sum alimony payment in their divorces may want to talk to their family law attorney about the prospects of getting approved for it. A lump sum alimony payment is indeed an excellent way to bring immediate closure to your relationship and get the water of an unsuccessful marriage under the proverbial bridge on ce and for all.