David Burrows considers the fairness of delayed lump sum payments when recession hits
In Milton v Milton [2008] EWCA Civ 926 Mr Milton had been required by His Honour Judge Brasse to wait for three years to receive his lump sum of £60,000. Lord Justice Thorpe allowed Milton's appeal by reducing the period for him to await payment to one year; but he felt that to include interest was “to introduce unnecessary complexity” into the order (para 7).
The award of a delayed lump sum in any circumstances must be done only with caution; but in a time of retail price inflation alongside property price deflation, special care is needed. A simple illustration shows this. On 1 June 2007, say, the net value of the former matrimonial home of a couple, now before the court on an ancillary relief application, is £200,000.
The wife (W) is to stay in the house. The court considers that the husband (H) should receive half the value of the house, namely £100,000 payable in three months (1 September
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