Lump sum alimony is the payment of alimony in one payment, a lump sum rather than payments over a period of time. For example, at the time of a divorce, one spouse may make a lump sum payment to the other as a settlement in the divorce, as a onetime payment, rather than providing monthly or annual payments toward the alimony. In some situation, the law considers a lump sum alimony payment as a property division, which may affect the tax status of it. It is important to consider the tax implications before selecting this type of payment for alimony.