Welcome to our Alphabet Information Series. Today’s topic is L for Lump Sum Order

Welcome to our Alphabet Information Series.  Today’s topic is L for Lump Sum Order 

A Lump Sum Order is an order that requires one person to pay the other person a lump sum of money. This could be for the ex-spouse’s benefit or for the benefit of the child/ren. For example, a lump sum can be ordered when there is a transfer of ownership of a property, typically the family home. The property would be transferred into one person’s name and a lump sum would be paid to the other person for their share of the equity of the property.  Lump sum orders are available on divorce and on the dissolution of a civil partnership alike.

Every case is different and how the payment is made is usually specific to the needs of those involved. The payment could be made in instalments or in one lump sum. If payment is to be made by instalments, then these are variable and can be ordered to be secured. How the payments are secured will depend upon your individual case. Other factors will be considered such as which other assets are available against which the lump sum can be secured, eg against a property owned by the person paying.

The lump sum order can be defined as a specific sum on a specific date and it should be noted that penalties for late payment of lump sums can be ordered, which can accrue interest, generally at the judgment rate of 8%.

If you need help with your finances during divorce or separation why not come in and have a chat with one of our experienced solicitors.  Call 01246 555 610 to book a free consultation today.