Arguments over the capitalisation of maintenance are best settled via dispute resolution processes, say Kim Beatson & Shelley Cumbers
In divorce and civil partnership dissolutions, the court can capitalise maintenance provision by making lump sum, property adjustment or pension-sharing orders in place of an earlier periodical payments order (Matrimonial Causes Act 1973, ss 31(7A)–(7F); Civil Partnership Act 2004, Sch 5, Pt 11, paras 50-62). Capitalisation cannot be used in nullity proceedings, judicial separation or to adjust orders made in favour of children of the family.
When capitalising maintenance the court must:
- discharge the periodical payments order or secured periodical payments order; or
- vary such an order so the payments are required to be made or secured only for such further period as is determined by the court.
In exercising its capitalisation powers the court can substitute the following in place of the original maintenance order:
- a lump sum order;
- one or more property adjustment orders;
- one or more pension-sharing orders against a previously unshared pension.
The court can also direct
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