Lump sum payments
A lump sum payment order is an order that requires you to pay a lump sum of money to the other party. This could be for your ex spouse’s benefit or for the benefit of your child or children.
Lump sum orders are available on divorce (same sex or heterosexual) and on the dissolution of a civil partnership. These orders can provide a useful tool on the breakdown of a marriage or civil partnership to give you a share of a large capital asset owned by your ex-spouse, or to compensate you for your interest in, for example, the family home and in business assets where liquidity can be an immediate issue.
Every case is different and how the payment is made is usually specific to the needs of those involved. The payment could be made in instalments or in one lump sum. If payment is to be made by instalments then these are variable and can be ordered to be secured. How the payments are secured will depend upon your individual case. Other factors will be considered such as which other assets are available against which the lump sum can be secured, e.g. against a property owned by the person paying.
The lump sum order will be defined as a specific sum on a specific date. It should be noted that there are penalties for late payment of lump sums which can accrue interest, generally at the judgment rate of 8%.
The Prime Minister has recently announced that heterosexual couples will have the choice between marriage and civil partnerships when formalising their relationship – a change some say is long overdue.
This week the government has announced they intend to reform the current divorce law by launching their consultation for the introduction of a “no-fault” divorce.