When considering the division of assets between separating couples, the court has the power to issue a ‘Lump Sum Order’ which prevents further financial claims between the parties.

This issue was recently explored by the Family Court in the case of LF v DF [2021] upon which Panay Vassiliou of Kangs Solicitors now comments.

The Family Law team at Kangs Solicitors provides substantial experience on a daily basis when representing clients in relation to all aspects of divorce and ancillary proceedings including those involving financial settlement proceedings.

Our Family Law team can be contacted for an initial no obligation discussion at any of our offices detailed below:

Background | Kangs Division of Matrimonial Assets Solicitors

The wife, a health professional, and the husband, an interior net entrepreneur, married in 2014 and, in 2015, they had a child.

In 2017 the parties separated, at which time their net assets valued at a sum in the region of £2million.

At the outset the wife sought the following capital sums on a ‘needs’ basis:

  • £500,000 for her housing needs
  • £180,000 (mainly legal costs) to clear her liabilities
  • £250,000 capitalised spousal maintenance
  • £200,000 educational fund for the child

In response the husband proposed the following:

  • £475,000 lump sum payment for the wife’s housing needs
  • £2,000 per month spousal maintenance for 12 months on a non-extendable basis
  • £500 per month in Child Maintenance

At the initial Hearing in January 2021, the Judge ordered:   

  • Child Maintenance of £500 per month
  • £475,000 lump sum payment for the wife’s housing needs
  • £3,300 per month spousal maintenance for 18 months on a non-extendable basis
  • That there should be no award as to the wife’s liabilities which he considered to be non-matrimonial.

The Appeal | Kangs Matrimonial Appeals Solicitors

The wife appealed the Judge’s Orders on the grounds that he:

  • was wrong not to provide for her liabilities
  • had not ‘cross checked’ his award to ensure fairness
  • had wrongly imposed a non-extendable bar to her maintenance claims.

Having considered all of the issues, the Appeal Judge:

  • set aside the lump sum of £475,000 and ordered an increased sum of £600,000.
  • allowed the Orders for child and spousal maintenance to remain in place.
  • stated that he considered that the lump sum of £475,000 was insufficient for the wife’s housing needs given that, once her liabilities had been factored in, this amount would reduce to approximately £300,000.
  • commented that the welfare needs of the dependent child required first consideration and if the original lump sum was not set aside there existed potential unfairness and vulnerability for the primary carer of the child.
  • accordingly, increased the lump sum award payable by the husband to £600,000. The judge had been wrong

How Can We Help? | Kangs Family Law Solicitors

We appreciate that many relationship breakdowns lead to a period of considerable stress and anxiety, and particularly so when financial issues also need to be agreed between the separating parties.

Our team will work proactively with you in an effort to secure an early favourable financial settlement whenever possible.

We welcome new enquiries by telephone or email.

The Kangs Family Law Solicitors Team is available to meet at our offices in London, Birmingham or Manchester.

Alternatively, we are happy to arrange an initial no obligation meeting via telephone or video conferencing.

For initial enquires please contact:

Panay Vassiliou
020 7936 6396 | 0121 449 9888

Helen Holder
0121 449 9888 | 0161 817 5020