Butler Giraudo & Meister
Peoria 309-407-3332
Morton 309-263-1204

Can a lump sum payment help women struggling to get alimony?

In traditional Illinois marriages, it is fairly common for women to remain at home while the man is the primary breadwinner. This is especially normalized in high-asset marriages with children, as one party often remains at home to raise the kids. When the marriage ends, these women find themselves at an economic disadvantage.

If you are one such woman, you may have been out of the job market for so long that your degrees and work experience may now be outdated. You may not even have work experience or a degree at all, depending on how young you got married and the path you followed. The new tax reform further complicates things by making alimony a tax burden to ex-husbands who pay.

Forbes recommends asking for a lump sum payment instead. Choose your lump sum payment based on your financial situation. If you do have a job and can continue to sustain yourself financially, then consider taking your lump sum as a retirement account, so you have a head start for later in life. If you are not yet financially stable, then taking a retirement account could set you up for trouble as early withdrawals may lead to penalties and fees.

The great thing about taking a lump sum payment instead of monthly payments is that you do not need to worry about your husband changing his mind later on. Also, if his financial situation changes, you could lose that support if it is paid monthly. What if he loses his job or falls into serious debt and files for bankruptcy? This might seriously affect his ability to pay, which in turn, can affect your own financial situation.

A lump sum settlement is therefore one of the safest solutions for women who need a head start on their finances after divorce. However, think twice about accepting non-liquid assets like a house or car as part of your settlement. These may end up costing you rather than saving you over the long run. Cars depreciate over time and large houses require upkeep.

No Comments

Leave a comment
Comment Information
  • I cannot even express in words the level of gratitude that I feel. ‘Thank you’ doesn't seem to be enough. Please know that your services and compassion will never be forgotten! I am forever grateful!

  • Thank you so much for your hard work and expertise. I feel as a father in the state of Illinois that what I am trying to achieve is nearly impossible. I am so glad I chose to have your office full of extremely intelligent women represent me.

  • We would like to say thank you for your expertise, education, and kindness when we met with you! Your confidence has helped to comfort us and give us hope that resolution of the issue is possible.

  • I just wanted to say thank you from the bottom of my heart for all your time, energy, and efforts you put into our case. Thank you for helping make our son's quality of life better. I cannot tell you how happy we are!

More Testimonials
Contact Us Today

Contact Our Lawyers About All Areas Of Family Law

We are driven and committed to a successful outcome for all of our clients. To arrange a consultation with attorney Susan Butler, Kelly Giraudo or Tamara Meister, call 309-263-1204 (Morton) or 309-407-3332 (Peoria). You can also contact our law firm by filling out the form below. With offices in both Peoria and Morton, we work hard for our clients while getting to know them as people.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Morton Office
100 S. Main Street
Morton, IL 61550

Toll Free: 888-314-9667
Phone: 309-263-1204
Morton Law Office Map

Peoria Office
416 Main Street
Commerce Bank Building
Suite 927
Peoria, IL 61602

Toll Free: 888-314-9667
Phone: 309-407-3332
Peoria Law Office Map

Morton Office Peoria Office