In South Carolina, divorcing spouses have several options for spousal support (aka, alimony). Examples include periodic, rehabilitative and lump-sum alimony, to name a few.
Lump-sum alimony, sometimes called a buyout, is an ideal alternative to periodic support for many Myrtle Beach residents. Typically, the recipient receives all their support in one large payment. Having access to a large sum of money can help you address some of the financial hardships that often accompany a divorce.
Is lump-sum spousal support wise?
It depends on your unique situation. In some circumstances, getting all your alimony at once is a lifesaver. However, lump-sum support might lead to hardships later if you find it hard to control your spending. Here are some additional advantages associated with lump-sum spousal support.
- It provides a cleaner break from your spouse, especially if you have no children together.
- With a lump-sum award, you know what you are getting and when it will arrive, increasing your financial security.
- A one-time payment gives you the freedom to remarry if you wish without losing any spousal support.
- With a lump-sum payment, you may have enough money to seek specialized training or education to fortify your future.
- In many situations, recipients of a lump-sum award typically receive more money than periodic payments provide.
As you might expect, there are a few disadvantages to receiving your alimony all at once. Along with the risk of spending it too quickly, a lump-sum payment could affect your eligibility to receive government assistance and public benefits. As taxable income, it could also impact your tax obligations.
If you remain uncertain about choosing the type of alimony you should request, consider learning more about South Carolina spousal support. Accurate knowledge helps you make wise decisions throughout your divorce.