Take your alimony lumps all at once. Find out if your state allows lump sum alimony payments.

Lump Sum Support

In several states, a spouse may pay the total alimony obligation at the time of the divorce by giving the other spouse a lump sum payment equal to the total amount of future monthly payments.

If you accept a lump sum alimony payment, you may face tax consequences. For example, if you receive a lump sum payment that’s referred to as "alimony" in your divorce decree, you may be subject to taxes on the full amount for that year. But if the same payment is called a "settlement," you may not be taxed. Don’t sign any documents or agree to any terms until you’ve consulted an expert, such as an accountant who specializes in divorce issues. The money you spend on a consultation could be peanuts compared to what you might owe in income taxes.

SOURCE: FindLaw