My ex has asked if I would agree to a lump sum payout of child support – it would be 5 years worth. I’ve checked that I won’t be penalised somehow by the tax man. The only thing that was brought to my attention is the possible change in amount over the years. I can work that into it, just not sure how to do it fairly if both our incomes fluctuate. Also, it has to be through a legally binding agreement so no-one can change their mind in the future even if care or income or circumstances change. Is this a good idea?
We did something similar in that we agreed in a financial split which was drawn up by lawyers into a financial agreement. It stated that we would never take money from each other after separation regardless of our financial circumstances. I didn’t find out until later that child support can over-rule a legal binding financial agreement. Something for you to be aware of.
You can incorporate a lump sum in a FBA but this can’t be classed as child support which is an ongoing and often fluctuating payment based on a number of changing factors. Doing it this way is usually better for all concerned.