The following Family guidance note provides comprehensive and up to date legal information covering:
A Duxbury calculation is an actuarial calculation designed to identify the capital sum required to meet a periodical payment requirement at a fixed rate for the remainder of the recipient’s life. The actual rate of return on the capital by a recipient is far from certain however, and Duxbury calculations were referred to as a 'tool and not a rule' by Thorpe LJ in the Court of Appeal, White v White. See also: Limitations of Duxbury calculations. The Duxbury tables are available via: At a Glance 2019–2020.
The court has a duty to consider whether a clean break is achievable between the parties, ie that the financial obligations of each party towards the other will be terminated as soon after the grant of the divorce order or decree of nullity as the court considers just and reasonable. As part of that exercise the court may consider whether there are sufficient assets to capitalise a maintenance claim. See also Practice Note: Financial clean break orders in family proceedings.
The Duxbury model calculates the lump sum that would be entirely exhausted if drawn in equal annual instalments for the remainder of the actuarial life expectancy of the recipient (based solely on the recipient’s age) after deduction of tax as appropriate and after allowing for, inter alia:
the income return
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