General principles—lump sum orders
General principles—lump sum orders

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

  • General principles—lump sum orders
  • Court’s powers
  • Remarriage
  • Delay
  • Interim lump sum orders
  • Lump sum orders in favour of a child
  • Statutory charge
  • Variation

This Practice Note sets out the general principles to be applied by the court when considering whether to make a lump sum order within financial proceedings, including as to the impact of remarriage, any delay in making an application, the variation of lump sum orders, whether an interim lump sum order may be made and orders in favour of children to the marriage or civil partnership.

Under section 23(1) of the Matrimonial Causes Act 1973 (MCA 1973) and Schedule 5 Part 1 to the Civil Partnership Act 2004 (CPA 2004) the court may make various orders intended to achieve a final adjustment of the matrimonial/civil partnership capital assets, on the granting of a decree/order of divorce/dissolution, a decree/order of nullity or a decree of judicial separation or civil partnership separation order or at any time thereafter. The orders will not take effect until a final decree/order has been granted.

In Hutchings-Whelan v Hutchings, McFarlane LJ (as he then was) stated in relation to lump sum orders that '…it is important not to lose sight of the overall task of the judge which is to fix upon one single lump sum as being the fair and just outcome of the entirety of the proceedings’.

Court’s powers

The court has the power to make the following lump sum orders:

  1. an order that either party to the marriage or civil partnership

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