When you are going through a divorce in New Mexico, you find it is hard enough all on its own, without having to be reminded of your ex-spouse every month when you get a check in the mail. Of course, you want and need that alimony payment to get back on your feet and build a new life. If only you could have the money without the reminder of a bad marriage every month.
It is a possibility, according to FindLaw. You do have the option to get all alimony support due you in one payment, a lump sum. If the one-time payment is agreed on by both spouses, the supporter can settle the debt in one payment and both parties can go their separate ways. This type of payment is not the case with child support, however.
One of the biggest benefits from this agreement is that the one receiving the payment has a fairly large sum to invest in their financial future. You may have enough to put a down payment on a new house, or perhaps you want to invest the money. The choice is yours. Just remember that it is a one-time payment and there will not be another.
If you have any doubts about the supporter’s ability to pay on time every month, a one-time payment also offers less aggravation. You will not have to seek a court judgment that orders your ex to pay the alimony due you. You do not have to worry about whether a check is coming to help you pay your rent or buy groceries. You do not need to know where he works and whether he is getting paid under the table.
If you do decide a lump sum is best for your situation, be sure that the payment is labeled as a “settlement” and not “alimony” because alimony can be counted as income and you may wind up owing taxes on it—all of it—in the year you receive it. You should discuss this tax situation with an expert before deciding.
This information is presented in a general manner and is not meant to replace the counsel of an attorney.