Lump sum order meaning

Procedural Guide This Procedural Guide explains the process for making an application under the Civil Procedure Rules 1998 (CPR), in line with CPR 72 and CPR PD 72, together with the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, to enforce a liability owed to the debtor by a third party within the jurisdiction (formerly described as a garnishee order). It also provides direction on interim third party debt orders, duties of third parties, hardship payment orders, the evidence required and the range of orders the court may make and grant where appropriate. A third party debt order is an enforcement route enabling a creditor to recover sums, for example arrears of maintenance or a lump sum, from money payable and owed to the debtor by a third party within the jurisdiction. This encompasses funds held in the debtor’s name with a bank or building society. Whether a third party debt order is granted lies within the court’s discretion and will depend upon the circumstances prevailing at the time...

Ahmad and another company v Faraj [2025] EWCA Civ 468 What are the practical implications of this case? This judgment serves as a timely reminder of the range of powers the courts can deploy after a party breaches an order, and the need to calibrate the response between imposing the less severe Hadkinson order and making an unless order. Although both remedies are unusual, the court emphasised that defiance would not be indulged and that these measures would be invoked to secure that any contempt is purged. Notably, even where an unless order could culminate in an appeal being struck out notwithstanding that permission to appeal had been granted (as was a live possibility here), the making of an unless order may still be justified. Lady Justice King concluded that the husband was intentionally in breach, and reaffirmed the approach in Mubarak v Mubarik (Contempt in Failure to Pay Lump Sum: Standard of Proof) [2006] EWHC 1260 (Fam), [2007] 1 FLR 722: the bare fact that a party...

Y v Z [2024] EWFC 4 What are the practical implications of this case? Before determining the application, the court was taken through a series of authorities. Peel J concluded that those decisions do not reveal a standard tariff or an upper limit; instead, each application falls to be decided on its own facts and within its specific context, with context being decisive... ChA 1989, Sch 1 empowers the court to order a settlement of property, commonly structured as a trust, licence or lease. Such arrangements preserve the payer’s ownership of the asset, whilst permitting the payee to live in the property with the children during their minority, or until the conclusion of tertiary education, as explained in Re A (A Child: Financial Provision) [2014] EWCA Civ 1577, [2015] 2 FLR 625 and UD v DN (Schedule 1, Children Act 1989; Capital Provision) [2021] EWCA Civ 1947, [2022] 2 FLR 308... In addition, the court may direct the payment of a lump sum or a series...

H v GH [2023] EWFC 235, [2023] All ER (D) 79 (Dec) What are the practical implications of this case? This judgment clarifies the Family Court’s inherent power to alter the payment date of a lump sum order, but only where the postponement is slight or modest and does not undermine the core of the original order. Citing the leading authority, Masefield v Alexander [1995] 1 FLR 100, the judge noted the extension there was just five weeks, and concluded the husband’s request for two years was not modest; therefore, the court lacked jurisdiction to grant it. It also stands as a practical illustration of the Family Court’s strike-out jurisdiction under the Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, r 4.4(1), namely where a statement of case discloses no reasonable grounds for bringing or defending the application, being deployed successfully. Further, the case squarely addresses the solicitors’ guideline hourly rates when assessing costs in family proceedings. ...

Practice Note This Practice Note sets out guidance on implementing and enforcing financial orders arising from family proceedings when one party has died. It examines the impact of a death on applications, and on secured and unsecured periodical payments, lump sum orders, property adjustment orders and pensions orders. Where a party dies before divorce or dissolution proceedings have begun, the parties remain married or in a civil partnership, and the deceased’s estate passes in line with their will or, if none, the intestacy rules. A claim for a financial order is personal to the spouses or civil partners and does not survive death. If either party dies before an application under the Matrimonial Causes Act 1973 (MCA 1973) or Civil Partnership Act 2004 (CPA 2004) for financial provision or property adjustment is made, the court has no jurisdiction to make a financial order. Likewise, if death occurs before the financial proceedings are determined, the court will be unable to make a financial order...

This Practice Note provides overarching guidance on how tax affects contributions to, and benefits paid from, pension schemes, together with the varieties of pension orders that can be made within financial order proceedings. Specialist advice should be obtained where necessary. Tax concessions Tax incentives on pension contributions encourage individuals and employers to build up future retirement savings...

This Practice Note examines how a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975) could be settled so as to: optimise access to welfare benefits or tax credits for a claimant prevent a claimant from forfeiting eligibility for other state funding, including community or residential care secure equivalent outcomes for estate beneficiaries who are not I(PFD)A 1975 claimants The powers available under the Inheritance (Provision for Family and Dependants) Act 1975 Under I(PFD)A 1975, s 2, the court may order periodical payments from the net estate, award lump sums, direct the transfer of specified property, and vary, to the applicant’s advantage, the trusts by which the deceased’s estate is held. Consequently, there is a broad spectrum of ways in which the court may provide for a claimant, and an award need not be confined to a straightforward lump sum payment. Further, pursuant to I(PFD)A 1975, s 2(4), where the court makes an order under the...

This precedent has been produced on the basis that the drafter is acting for the buyer. The following warranties have been prepared for a transaction where: The Buyer will provide pension benefits through its own arrangement or via an appointed provider; and Employees’ past service benefits will not be transferred to the Buyer’s arrangement. You are strongly advised to involve a pensions specialist at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 7 inclusive: Employee means [ [specify as necessary, either by category or by named individuals ]; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be given on retirement, long-term ill-health or death, or pursuant to a pension sharing order, in relation to the service or historic service of an Employee or any other person, or...

This precedent is prepared on the footing that the drafter acts for the Seller. It is prepared on the basis that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions specialist is engaged at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 12 (inclusive), the following definitions set out below shall apply: Employee means any current or former employee, officer, or director of the Company [ or of any Group Company ] [ and any other individual involved in the management of the Company’s affairs ] ; Pension Scheme means any arrangement or practice providing for, or contributing towards, an annuity, pension, lump sum, gratuity, or similar benefit on retirement, long-term ill-health, or death, or pursuant to a pension sharing order, arising from the service or historic service of an Employee or any other person, or for the benefit of that individual’s dependants; and Pension Schemes shall be construed accordingly......

This template has been prepared on the basis that the writer is acting for the buyer, and that the target company (the Company) is a subsidiary of the Seller. It is strongly recommended that a pensions expert is engaged at the earliest opportunity. 1 Definitions For purposes of paragraphs 2 to 9 inclusive, the following apply: Employee means any present or former employee, officer, or director of the Company [ or of any Group Company ] [ and includes any other person participating in the management of the Company’s affairs ] ; Pension Scheme [ s ] mean [ s ] [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or for contributing towards, an annuity, pension, lump sum, gratuity, or a similar benefit to be provided upon retirement, ill-health, death, or a change in service status, or in compliance with a pension sharing order, in relation to the service or historic service of an Employee or any...

Put simply, financial provision orders do not come into force until the decree is made absolute. This is set out expressly for lump sum and periodical payments orders in section 23(5) of the Matrimonial Causes Act 1973 (MCA 1973). As regards property transfer orders or settlements, the requirement appears in MCA 1973, s 24(3). See Practice Note: Implications of the death of a party...