Definition: A Lump Sum is a one-time payment made instead of regular, ongoing spousal support. It provides a final resolution to spousal support obligations, ensuring no future financial exchanges between the parties.
When to Use: This option is ideal for situations where the paying spouse prefers to settle spousal support with a single payment. It eliminates the need for ongoing support payments and the complexities of future reviews or modifications.
Example: A higher-earning spouse may choose to provide a lump sum payment to their former partner, enabling them to manage their finances independently moving forward.
Amount of Lump Sum Support:
Legal Guidelines: The SSAG allows for lump sum payments as a fair resolution in cases where ongoing spousal support is impractical or undesired by the parties. This option is particularly suitable for high-income earners who wish to avoid future legal or financial disputes.
Impact on Agreement: The agreement should clearly define the lump sum amount and the payment date. Once the lump sum is paid, no further spousal support obligations exist, making this a final settlement option.
Selecting Lump Sum Support provides a clean break between the parties and can be a practical solution in cases where both parties prefer to avoid future entanglements. Mediators should ensure that the lump sum amount aligns with the SSAG calculations and that the details are accurately recorded in the final agreement. Accessing the Divorce Mate/DivorcePath SSAG Report ensures that all calculations are transparent and based on relevant legal standards.