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Is it better to agree to a lump sum payment or to receive regular alimony payments?

Your personal circumstances will affect whether a lump sum payment, often as part of a clean-break agreement, or regular alimony payments (also known as spousal maintenance) is the right option for you.

In a clean-break agreement, a financial settlement is reached between you and your spouse, which can include the payment of a lump sum. All future financial claims are cancelled and you are able to draw a clear line under the divorce.

A clean break can be the best option, as it gives each of you certainty and allows you to get on with your lives. If you are receiving maintenance, there is a risk that the payment could fall in the future: for example, if your spouse becomes unemployed.  Conversely, if you think your spouse’s financial circumstances are likely to improve, you may not wish to agree a final settlement based on current earnings.

A complete clean break may not be possible if there are children involved, as there may need to be ongoing financial support while they are growing up. Child maintenance cannot be covered by a clean break agreement as it is maintenance for the children rather than for you.

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