What is Lump Sum Alimony?

Information Provided by our Houston Alimony Attorney

Photo of EnvelopesDuring divorce proceedings, Houston courts typically award alimony to be payable on a monthly basis. However, in some cases, the parties can agree for a lump sum payment to be made upon divorce. While a lump sum payment may not be right for certain people, in certain instances, such an arrangement may be beneficial because it:

  • Releases the payor spouse from any future spousal support obligations
  • Reduces the risk of any future conflicts between the spouses over alimony arrangements
  • Allows the spouse receiving alimony the option to immediately use the money if necessary or to invest it for future use
  • Eliminates any concerns about the payor spouse forgetting to pay or making late payments

However, when making the decision whether to enter into a lump sum alimony arrangement, the spouses must keep in mind some of the disadvantages, such as the possibility that the lump sum payment may be less than the total payout under a monthly alimony schedule and the tax disadvantages of making a single payment. Additionally, the payor spouse must be financially able to make a large initial payment.

If you are facing a Houston divorce and are considering whether a lump sum alimony arrangement may be best for you, you should contact a Houston alimony lawyer at John K. Grubb & Associates, P.C. We are a Houston divorce law firm that has vast experience in a wide variety of family law matters, ranging from divorce law to child custody disputes to alimony arrangements. Our Houston spousal support lawyers are available to assist you with your alimony needs.