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Lump Sum Orders and Periodical Payment Orders Explained

The process of dissolving your marriage can already be an unsettling, stressful and difficult time and dealing with financial considerations on top of the emotional aspects of divorce can add to these feelings.

However, disentangling your assets is a big part of the separation process, so it’s important you choose divorce financial settlement solicitors who can guide you.

In this article we’ll outline some of the financial orders that family courts can make, Lump Sum and Periodical Payment, as well as how our divorce solicitors can help.

Lump Sum Orders

A Lump Sum Order is a court order which requires one party to pay the other a large sum of money, usually at once.

Most commonly, this order is enforced when there are large assets involved, such as property, and one party is remaining in the property while the other is moving out.

In this scenario, the property would be signed to the remaining person’s name, and they would pay the lump sum which would usually equate to the other party’s share of the property value.

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Periodical Payment Orders

Periodical Payment Orders, also commonly known as Maintenance Orders, are periodical payments made from one party to another following divorce. These are usually paid on  a monthly basis.

The two types of Periodical Payment Orders are Spousal Periodical Payments and Child Periodical Payments. The figures for both can be calculated separately or combined into something called a Global Periodical Payment.

Spousal Periodical Payments may occur when one spouse has surplus income after meeting their living expenses, while the other is financially weaker and requires support. There are a number of reasons why this could happen. The financially weaker spouse may not work or only work part time to look after children. To avoid facing financial difficulty after divorce, the higher earner can be ordered to pay maintenance to the other spouse.

Child Periodical Payments are specifically about the living expenses of children. These payments will be paid by the parent who may not be responsible for day-to-day care of children, to the parent who is, to meet the children’s living costs.

Our specialist divorce solicitors can help with financial difficulties.

You are likely to have lots of questions, which require careful, considered advice from our divorce financial settlement lawyers.

Our divorce solicitors act with utmost discretion. If you’re considering your options, fill in your detail below and we’ll call you back for a confidential and no-obligation conversation about your personal situation.

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    Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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