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Does lump sum spousal support benefit you?

Spousal support is certainly less commonly used in divorce than it used to be, but it is still a concern for many divorcing spouses, especially those with significant assets. While spousal support may take many forms, it is rarely desirable for the paying spouse to remain tethered to a person he or she divorced, regardless of the circumstances.

Fortunately, it is often possible for a paying spouse to take care of all of his or her spousal support at once in a lump sum payment. While this is not ideal in every instance, for many paying spouses, it simplifies the matter and allows them to negotiate more favorable terms. If you face a high-asset divorce and expect that spousal support may come into play, or if you are not sure about the matter, is it always wise to speak with a professional divorce attorney.

With legal guidance, you can ensure that you understand your rights as well as your available legal options and develop sound strategies to achieve your divorce goals.

Why consider lump sum spousal support?

For those with significant assets, paying lump sum spousal support is often much simpler than ongoing spousal support obligations. As a person of means, you understand that financial circumstances may change rapidly, so it is often advantageous to absorb the additional cost of a one-time payment to relieve future claims on your finances.

In some cases, it is even possible to use the prospect of a lump sum support payment to negotiate more favorable terms in other areas of the divorce settlement. Practically speaking, property division and spousal support are very closely related, but they are usually not subject to the same taxation, so it is important that you fully understand all of the tax implications of any course of action.

This is especially true for those who choose to divorce after 2018. The new tax bill recently passed in Congress changes the tax implications of spousal support significantly, so making a lump sum payment before the end of 2018 may have significant advantages, depending on other factors in your finances.

Are you prepared to achieve your divorce goals?

As you weigh your options and determine your priorities for the divorce, be sure that you understand your legal rights in the process as well as the tools available.

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