In most cases in which alimony is awarded in Florida, the alimony is usually awarded in periodic payments. That means that the alimony is paid in a certain amount at regular intervals, such as monthly, weekly, bi-weekly, quarterly, etc. This is what I see most often in Pasco County or Hernando County.
Lump sum alimony is the payment of alimony in one or several payments. Any type of alimony can be awarded in a lump sum, including permanent, durational, and bridge-the-gap. One limitation on lump sum alimony is that it can’t be used to satisfy any debts between the spouses.
In order for lump sum alimony to be awarded, there must be a showing of unusual circumstances that would require the alimony to be paid in a lump sum, as well as a showing of need and the ability to pay in a lump sum.
Some cases in which lump sum alimony may be appropriate would be if the payor spouse had the funds to pay the alimony in a lump sum and was proven to be very unreliable in the past, if there was a history of one spouse wasting assets, or if the parties hated each other to such an extent that it would be in the best interest of both to have no further contact in the future.
With periodic payments of alimony, if there’s a change in the financial circumstances of either or both parties, they can go to court to have the alimony modified. Obviously, if the alimony is paid in a lump sum amount, the parties cannot go back to court later to try to have it adjusted because of a change in circumstances. Therefore, lump sum alimony is much less common than periodic payment alimony.
In some cases, lump sum alimony may be appropriate. If you believe that lump sum alimony is appropriate in your situation, call your Florida divorce attorney to learn more about your options.