header-logo header-logo

The lump sum trap

01 August 2013 / Margaret Hatwood , Rebecca Carter
Issue: 7571 / Categories: Features , Family
printer mail-detail
istock_000006153344medium

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

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

CBI South-East Council—Mike Wilson

CBI South-East Council—Mike Wilson

Blake Morgan managing partner appointed chair of CBI South-East Council

Birketts—Phillippa O’Neill

Birketts—Phillippa O’Neill

Commercial dispute resolution team welcomes partner in Cambridge

Charles Russell Speechlys—Matthew Griffin

Charles Russell Speechlys—Matthew Griffin

Firm strengthens international funds capability with senior hire

NEWS
The proposed £11bn redress scheme following the Supreme Court’s motor finance rulings is analysed in this week’s NLJ by Fred Philpott of Gough Square Chambers
In this week's issue, Stephen Gold, NLJ columnist and former district judge, surveys another eclectic fortnight in procedure. With humour and humanity, he reminds readers that beneath the procedural dust, the law still changes lives
Generative AI isn’t the villain of the courtroom—it’s the misunderstanding of it that’s dangerous, argues Dr Alan Ma of Birmingham City University and the Birmingham Law Society in this week's NLJ
James Naylor of Naylor Solicitors dissects the government’s plan to outlaw upward-only rent review (UORR) clauses in new commercial leases under Schedule 31 of the English Devolution and Community Empowerment Bill, in this week's NLJ. The reform, he explains, marks a seismic shift in landlord-tenant power dynamics: rents will no longer rise inexorably, and tenants gain statutory caps and procedural rights
Writing in NLJ this week, James Harrison and Jenna Coad of Penningtons Manches Cooper chart the Privy Council’s demolition of the long-standing ‘shareholder rule’ in Jardine Strategic v Oasis Investments
back-to-top-scroll