Alternatives to Monthly Alimony Payments in a Texas Divorce
Lump Sum Support
Texas does not support the concept of a lump sum payment 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.