header-logo header-logo

The lump sum trap

01 August 2013 / Margaret Hatwood , Rebecca Carter
Issue: 7571 / Categories: Features , Family
printer mail-detail
istock_000006153344medium

When is a clean break not a clean break? Margaret Hatwood & Rebecca Carter report

Most people going through a divorce want to achieve future certainty in their financial arrangements. This can be achieved by what is known as a “clean break”. A full clean break means that neither party has any right to come back to court in the future for any orders for maintenance or capital.

While this is often the desired outcome, it is not always practically possible. Where an order is made for ongoing maintenance in favour of a husband or wife, the court can only impose a capital clean break, so that neither party can come back to apply for capital or lump sums in the future. Whereas the maintenance can be varied upwards or downwards if there is a change of circumstance. Achieving a capital clean break, however, poses its own problems and there are certain pitfalls to watch out for.

While an order for “lump sums” cannot be varied, an order for a

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
back-to-top-scroll