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01 August 2013 / Margaret Hatwood , Rebecca Carter
Issue: 7571 / Categories: Features , Family
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The lump sum trap

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When is a clean break not a clean break? Margaret Hatwood & Rebecca Carter report

Most people going through a divorce want to achieve future certainty in their financial arrangements. This can be achieved by what is known as a “clean break”. A full clean break means that neither party has any right to come back to court in the future for any orders for maintenance or capital.

While this is often the desired outcome, it is not always practically possible. Where an order is made for ongoing maintenance in favour of a husband or wife, the court can only impose a capital clean break, so that neither party can come back to apply for capital or lump sums in the future. Whereas the maintenance can be varied upwards or downwards if there is a change of circumstance. Achieving a capital clean break, however, poses its own problems and there are certain pitfalls to watch out for.

While an order for “lump sums” cannot be varied, an order for a

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MOVERS & SHAKERS

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

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Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

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