Capitalised maintenance on variation
Capitalised maintenance on variation

The following Family guidance note provides comprehensive and up to date legal information covering:

  • Capitalised maintenance on variation
  • Introduction
  • Orders that can be made by the court
  • The court's approach
  • Procedure

Introduction

Under sections s 31(7A)–(7F) of the Matrimonial Causes Act 1973 (MCA 1973) (as amended) and the Civil Partnership Act 2004 equivalent provisions (CPA 2004) the court has the power in specific circumstances to make lump sum or property adjustment orders effectively by way of capitalisation of maintenance provision.

These powers may be exercised only where, after the dissolution of a marriage or civil partnership, the court:

  1. discharges a periodical payments order or a secured periodical payments order in favour of a party to the marriage or civil partnership, or

  2. varies such an order so that payments are required to be made or secured only for such further period as is determined by the court

Note that these provisions have no application in suits for nullity or judicial separation, nor do they apply to orders in favour of children of the family.

The court may also make an order capitalising maintenance on the making of a financial order (as well as on variation), see Practice Note: Capitalised maintenance—Duxbury calculations.

Orders that can be made by the court

The court has the power to make:

  1. an order for a lump sum in favour of a party to the marriage or civil partnership

  2. one or more property adjustment orders in favour of a party to the marriage or civil partnership

  3. one or more