Lump-Sum vs. Periodic Alimony in Orlando: Which Is Better?

Whether you’re set to receive or pay alimony in Orlando, you might be wondering about the difference between a lump sum and periodic installments. Both options have their various pros and cons, but the optimal choice largely depends on your unique circumstances. It might be a good idea to discuss these circumstances alongside your divorce lawyer in Florida for more personalized guidance.

Advantages of Lump-Sum Alimony 

The main advantage of lump-sum alimony is that once it is paid, you don’t need to worry about it ever again. If you’re set to receive alimony, a lump sum can provide greater financial options. For example, you might invest your lump sum and generate more returns. You might also use the alimony to put a down payment on a home. These actions may not be possible with periodic payments.

If you’re paying alimony, another advantage is that your ex doesn’t have the option to modify this arrangement in the future. With periodic alimony, they could potentially ask for more in the future due to changes in circumstances.

Advantages of Periodic Alimony 

Periodic alimony is more common, and it is a popular choice for numerous reasons. First, the payments are simply more manageable for the paying spouse. Some of these spouses might not have considerable cash available to make lump-sum payments. Another advantage is that it prevents receiving spouses from spending their money too quickly.

Another key advantage of periodic alimony is the fact that it may be modified in the future. This could be advantageous to both paying and receiving spouses, as each could potentially demand more or pay less depending on the circumstances.

Alimony is Easier to Modify in the Future 

Thanks to new changes to Florida’s laws, alimony is now easier to modify for those who retire. If you are paying alimony and you retire, you can now end or dramatically reduce these payments with much greater ease.

This might make periodic alimony more attractive for modern spouses in Florida. If you pay a lump sum instead, you might lose the opportunity to take advantage of this legal change.

Alimony Doesn’t Last for Very Long in Florida Anymore

 For the most part, paying spouses can now end their alimony payments sooner in Florida. Permanent alimony has been abolished, and many alimony payments end within a few years. This might make lump sums more attractive than ever before, as the net alimony amount may be low. Discuss the pros and cons further with your alimony lawyer in Florida.

Find an Experienced Divorce Lawyer in Orlando 

You can continue this discussion alongside a spousal support lawyer in Orlando. These legal professionals stay updated on the latest developments in alimony laws, helping you pursue positive outcomes in your divorce. During an initial consultation, you can discuss numerous subjects – including alimony, parenting time, child support, and property division. Reach out to Steve Marsee, P.A. to get started with an action plan.

Sources: 

nbcmiami.com/news/local/permanent-alimony-and-abortion-a-look-at-some-of-the-most-impactful-laws-passed-in-florida-in-2023/3191356/

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.08.html