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An order may be made within divorce/dissolution, separation or nullity proceedings providing for either party to the marriage or civil partnership to pay to the other, or for a child of the family, a lump sum or sums.
A lump sum order will not take effect until a final decree/order has been granted. The order may provide for a single lump sum, a series of lump sums or a lump sum order payable by instalments.
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Procedural guide—attachment of earnings This Procedural Guide sets out the steps to be taken on an application for an attachment of earnings order under the Attachment of Earnings Act 1971 (AtEA 1971) and the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, Pt 39 to enforce a maintenance order by the deduction of money directly from the debtor’s earnings. It includes guidance on who may apply, arrears that are more than 12 months old and the duties of the employer and the debtor. If a judgment debtor is an individual and is employed, the judgment creditor may apply for an order to enforce the judgment against the debtor's wages or salary. This will require the employer to deduct periodic amounts from the debtor's salary and pay them to the court. This is known as an attachment of earnings order (AEO). See also Practice Note: Attachment of earnings order. FPR 2010, SI 2010/2955, Pt 39 applies to any proceedings commenced, but not disposed of, before 6 April 2016 (when amendments to...
Procedural guide—applications under Schedule 1 to the Children Act 1989 An application under Schedule 1 to the Children Act 1989 (ChA 1989) will proceed in accordance with the standard procedure, unless the application is for periodical payments only (ie no capital orders are sought). Similarly where an application is made to vary an order, the fast-track procedure will only apply if the application concerns the variation of a periodical payments order and no form of capitalisation is sought. See Practice Note: Fast-track (shortened) financial remedy procedure. An application under ChA 1989, Sch 1 is made in the Family Court and allocated to a district judge. See Practice Notes: Procedure—Schedule 1 to the Children Act 1989 and Issuing financial proceedings in Form A (standard procedure). This Procedural Guide is primarily concerned with applications under the standard procedure. The pre-action protocol and overriding objective defined in the Family Procedure Rules 2010 (FPR 2010) apply to applications under ChA 1989, Sch 1—see Practice Note: Financial proceedings—pre-application requirements—Pre-application protocol (FPR 2010, PD 9A, Annex)....
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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,...
Courts' powersUnder section 23(1)(c) of the Matrimonial Causes Act 1973 (MCA 1973), and the equivalent provisions of the Civil Partnership Act 2004 (CPA 2004), the court may order one party to a marriage/civil partnership to pay to the other ‘such lump sum or sums’ as may be specified. The court is not limited to ordering the payment of one lump sum and can order the payment of a series of lump sums. However, there can only be one application for a lump sum. Thus the court's power, under the legislative provisions, is limited to the ability to award one or more lump sums under the ambit of a single application. The court may however order one lump sum to be payable by a series of instalments, as opposed to a series of individual lump sums.In light of the decision in Hamilton v Hamilton, regard should be had to the nature of the lump sum order agreed when drafting the order and the inclusion of a specific recital recording the nature...
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Letter to client enclosing final order in divorce or dissolution proceedings (post-DDSA 2020) Dear [insert client’s name] Final order I have received the final order in your [divorce OR dissolution] [(previously known as decree absolute)] and I enclose a copy for your records. It is the final order that formally ends your [marriage OR civil partnership]. You should keep the original final order in a safe place as you will need it in the event of your [remarriage OR formation of a civil partnership]. Remarriage, formation of a civil partnership or cohabitation Now that final order has been pronounced, either of you may marry again or enter into a civil partnership. The consequence of remarriage or the formation of a civil partnership is that an application for financial provision (ie periodical payments or a lump sum order), or for a property adjustment order, may not be made. Please note that there may
Variation of financial orders—client guide (standard procedure) This document provides general guidance regarding an application to court to vary a financial order. Your family lawyer will be able to provide specific advice based on your circumstances. What orders can the court vary? The court can vary the following types of order: • maintenance pending suit or interim maintenance • periodical payments or secured periodical payments (also known as maintenance orders)—this includes reducing or increasing the amount payable and the length of time for which it should be paid; the court can also replace a maintenance order with a capital order (ie capitalisation, see below) • lump sums payable by instalments—it is highly unlikely that the court will vary the total amount payable but it may alter the timing and/or amount of the instalments ordered • orders for sale—the court can alter the mechanics and timing of the order but not the underlying division of the proceeds of sale [An application to vary a periodical payments order must be made while...
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The parties have agreed to sell their family business, which is jointly owned with no third party interests. Does the court have the power to make an order for the sale of the business or is an agreement for the sale of a business expressed as a recital or undertaking? An order for sale under section 24A of the Matrimonial Causes Act 1973 (MCA 1973) may only be made if there has been a legal services payment order, a secured periodical payments order, a lump sum order or a property adjustment order. Orders for sale are most commonly made as an adjunct to a lump sum order or a property adjustment order. ‘Property’ for the purposes of MCA 1973, s 24 (property adjustment orders) and MCA 1973, s 24A includes real property, tenancies, interests in insurance policies and shares in limited companies (as opposed to property held by a company). ‘Property’ may include
A financial consent order has been made that provides for the former matrimonial home to be transferred to one spouse on the basis that they obtain the release of the other spouse from the mortgage and for a lump sum to be paid to the transferring spouse. A short time after the order was made, the spouse to whom the property was to be transferred has indicated that they are unable to secure the mortgage release and that they wish the property to be sold. If an order for sale is made, can an additional lump sum be made in favour of the transferring spouse to cover their additional costs and any capital gains tax liability? Pursuant to section 31 of the Matrimonial Causes Act 1973 (MCA 1973), the court has the power to vary its own orders made within financial remedy proceedings, but that power is limited. The types of orders that may be varied are listed in MCA 1973, s 31(2), and include orders...
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This edition includes details of the most recent View from the President’s Chambers and updated guidance on the use of artificial intelligence (AI) released by the Courts and Tribunals Judiciary. Recent judgments, including the Supreme Court's dismissal of an appeal against the discharge of injunctions prohibiting identification of the clinicians involved in treating gravely ill children, consideration of intermediary assistance in care proceedings and the use of a Hadkinson order are also set out.
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