Divorce settlements can be worked out in a number of ways and there are many factors that affect a settlement. It is easy to overlook certain assets to which you might have a claim, so it is essential that legal advice from a specialist divorce solicitor is obtained. The law relating to income, capital and property in divorce settlements is governed by the Matrimonial Causes Act (1973) and applies equally to both men and women. The following are two examples of orders a court can make as part of a divorce settlement.
Periodical Payments Order (PPO)
This is a payment made to one spouse by the other, either weekly, monthly or annually. For example, an ex-husband could be ordered to pay his ex-wife £300 per month. PPOs can be secured or unsecured. If a PPO is secured and a payment isn't made then the security item can be sold to make the payment. The security could be in the form of a property, shares or a vehicle. Payment will stop on either a court-specified date, the re-marriage of the recipient or on the death of either party.
Lump Sum Order (LSO)
This is a type of property order. An LSO will require that a lump sum of money be handed over from one spouse to the other. This may include an LSO for the benefit of a child and it can be paid over a period of time. An LSO is usually used when one party stays in the matrimonial home and the money is used to rent or buy a home by the other party.
Many financial settlements are completed out of court and therefore rely on the negotiating skills of the solicitors involved. Our divorce solicitors are experienced in dealing with all types of financial agreements following divorce, and are on hand to answer any questions you may have about your situation.
So if you would like to obtain advice on divorce settlements or would like our help in finding a local divorce solicitor please call us at 0800 1777 162 or complete the web-form above.
- Last Updated on 11/12/2012