What Is Lump Sum Spousal Maintenance?
When you are preparing for a divorce in DuPage County and are anticipating that you will either be paying alimony (also known as spousal maintenance) or receiving it, it is important to understand how these types of payments work under Illinois law. Generally speaking, in order for one spouse to be eligible to receive support, that spouse has to request support. Then, the next step involves the court looking at a number of different factors to determine whether spousal maintenance is appropriate in the given case. The court must make this determination before it ever considers how maintenance will be paid, for long the payments will last, and how much will get paid. If the court decides spousal maintenance is not appropriate, it never even considers how and when alimony will be paid.
If a court does decide alimony is appropriate, then the court’s next steps are to determine the amount and duration of the alimony award. For most DuPage County residents, the court will use guidelines with formulas to make those determinations. Only once the court has decided the amount and duration of the alimony award will it reach the issue of how it actually gets paid and with what frequency. The frequency of alimony payments can be an important one, both for the spouse making the payments and the spouse receiving the payments. Our DuPage County divorce lawyers want to provide you with more information about lump sum payments.
What Is a Lump Sum Payment for Spousal Maintenance in Illinois?
Spousal support awards typically are paid monthly over a particular duration. For example, if a court determines that Spouse A should pay Spouse B an amount of $2,000 per month for 48 months, then that amount usually would get paid monthly, for a total of $96,000 once the total alimony award is paid out in full.
In some cases, however, spouses want to use a lump sum payment system. With a lump sum payment, the receiving spouse would get an award of $96,000 in the above scenario, and the paying spouse would pay that amount through cash, check, or potentially with other assets. While the idea is for a lump sum payment to be made all at once, sometimes these awards are made through a short series of one-time payments. There are both benefits and limitations of lump sum payments.
Benefits and Limitations of Lump Sum Maintenance
For the receiving spouse, getting a lump sum maintenance payment can allow that spouse to kickstart a small business or to make other up-front investments necessary for getting back on his or her feet. Lump sum payments can also be beneficial to the receiving spouse if the paying spouse is likely to have a reduction in his or her income in the near future that could lead to a modification. For both parties, a lump sum payment can allow for a quick and final end to the relationship (and subsequent interactions).
There are also limitations to a lump sum payment. It can be difficult, for instance, for the paying spouse to afford a lump sum payment. The paying spouse could also end up paying a significant amount of money in taxes in a single year with a lump sum payment.
Seek Advice from an Oakbrook Terrace Alimony Lawyer
Do you have questions about spousal maintenance or other aspects of divorce in DuPage County? An experienced Oakbrook Terrace family attorney can speak with you today. Our firm has years of experience serving members of the Muslim community in a wide variety of family law matters. Contact Farooqi & Husain Law Office online or call us at 630-909-9114.