lump sum spousal maintenance
how much is the amount?
Spousal maintenance may be paid in lump sum or through instalments. The advantage with a lump sum payment is that payment is assured.
Spousal maintenance is the financial support given to a former spouse or de facto partner even after the relationship has ended. It may be the subject of a binding financial agreement or may be ordered by the court.
There is no standard amount that will be given as spousal maintenance. Many factors will be considered in determining the amount for spousal maintenance. The needs of the applicant will be taken into consideration along with the capacity of the other party to provide financial support. Also, if the applicant is still capable of earning an income then this will greatly affect the amount to be given because the applicant is still self-sufficient. Other relevant factors to be considered regarding spousal maintenance are the ages of the parties, their health and lifestyles.
In summary, the amount will vary depending on the factors that are present in every case.
The payment depends on the agreement of the parties or on the order of the court. It may be made weekly, monthly or lump sum.
This is a single payment made as spousal maintenance. This is generally given as part of the property settlement. It is a bigger amount as compared to the amount given in instalments. A lump sum payment is meant as a one-time payment.
The advantage is that the applicant is assured of getting a fixed amount as spousal maintenance. There is no more need to collect or communicate with the other party which is usually the case if the maintenance is being paid in instalments. There are even cases that the former spouses or de facto partners end up haggling about the payment because the one supposed to pay does not have the money. So, a lump sum payment does away with the uncertainty of being paid.
A lump sum payment is also an advantage if the applicant plans on making a big transition like moving to a new place, starting a business or transferring to a new house. These aforementioned endeavours would require a large sum of money. A lump sum spousal maintenance can help the applicant transition to his new life.
The disadvantage with a lump sum payment is that it is fixed. The applicant must make sure that the lump sum is used wisely because it would be difficult to ask for further spousal maintenance. The purpose of awarding or giving a lump sum payment is to forego making future payments. Through a lump sum payment other party is already considered to have fully complied with his responsibility of providing financial support such that there should be no more future claims for maintenance.
Disclaimer : This article provides basic information only and is not a substitute for a professional or legal advice. It is prudent to obtain legal advice from a family lawyer.