For unhappy couples, finalizing a divorce often feels like crossing a monumental finish line. Some people may be unhappy to realize that they are still somewhat tethered to an ex-spouse through alimony. Although alimony is an important aspect of Michigan family law that is often vital to a person’s well-being, those who are ordered to pay that support can take steps to lessen the feeling of being financially attached to their ex.
In most situations, alimony — also commonly referred to as spousal support — is paid on a monthly basis. While this might seem like the easiest setup, there are some potential downfalls. Accidentally missing a payment can put a person in a bad place with the court. Additionally, it can act as a constant reminder of an ex-spouse and unhappy marriage.
Instead, some people are choosing to pay off their alimony in a single lump sum. This involves making a one-time payment that equals the sum of all future payments. Although it can be a stretch for some financially, doing so can benefit both parties. The payer can get the task done and over with, while the recipient can potentially save and invest the support funds received. The payer is also generally protected from modifications that could potentially raise his or her ordered amount and the recipient will not have to worry about enforcement issues for nonpayment.
Paying off alimony in a single lump sum is not an appropriate choice for everyone, but it can work out well in certain situations. Individuals in Michigan who are financially secure enough to make this one-time payment may want to consider it as an option. However, since family law is complicated, there can be unintended consequences for certain decisions, so seeking guidance from an experienced attorney is usually well-advised.