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Should you accept lump-sum alimony in a high-asset divorce?

On Behalf of | Aug 6, 2022 | Divorce & High Asset Divorce |

Alimony is usually a sore subject in high-asset divorces. Often, mistrust, anger and feelings of betrayal cause one or both spouses to fear getting the short end of the community property stick.

Less wealthy spouses want to ensure they receive a fair amount of alimony while spouses with more assets think it’s only greed. Spousal support conflict is just one of the many financial issues that complicate high-asset divorces.

Forms of alimony in California

Like many other regions, California offers several spousal support options. They include:

  • Temporary alimony for separated spouses getting a divorce
  • Permanent alimony lasting until the spouse dies or remarries
  • Reimbursement alimony to remunerate an ex-spouse that needs education or training
  • Rehabilitative alimony until the receiving spouses can support themselves without alimony

Lump-sum spousal support is also an option, usually to replace the spouse’s rightful share of marital property.

Possible advantages of lump-sum alimony

If your spouse is offering you one large lump-sum payment, they are probably trying to come out ahead in the divorce. However, that doesn’t mean it is not worth considering. You can do many things with a sudden windfall, including:

  • Invest the money for long-term profits
  • Use the funds to expand or start a business
  • Purchase a new home for you and your children

A lump-sum payment may prevent you from becoming dependent upon your ex to send you money every month. If they make poor financial investments and lose everything, you will have already received your alimony and won’t face any financial obstacles.

Before you accept any alimony offer, get legal guidance. Together, you can determine if the alimony offer meets your needs or if you should continue your divorce negotiations. Taking this step helps you protect your post-divorce financial future.

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