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 and variation. It also provides guidance on interim lump sum orders and lump sum orders in favour of children of 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 an order for such lump sum or sums as may be specified 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 decree absolute/a final decree/order has been granted.

Only a single lump sum order may be made, although that order, where appropriate, may include provision for the payment of more than one lump sum, for example where one sum is to be paid immediately and a further sum to be paid upon the happening of a future event, or an immediate sum to be followed by a series of lump sum payments. In Hutchings-Whelan v Hutchings, McFarlane LJ (as he then was) stated in relation to lump sum

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