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History: Home UK Divorce Forum
Capitalisation of periodical payments (4 Posts)
Started By:
15 May, 2017 12:19PM
Capitalisation of periodical payments
deltafox - 15 May, 2017 12:19PM
I pay £1000 per month periodical payments which is payable for the next 9 years, until my ex is 60 by which time I will be 65. Can I force this to be capitalised and if so what would be a realistic lump sum payment?

Do duxbury tables account for this or do they assume until death?

I am very keen to pay my ex off as neither party can really move on and I feel it is like a millstone around my neck

Re: Capitalisation of periodical payments
davidterry - 15 May, 2017 05:11PM
£1,000 a month for 9 years is £108,000 so that is the absolute maximum you should ever pay. This sum should be discounted for payment now rather than over 9 years so on a strict actuarial basis you should pay significantly less than this. In practice whether you can buy off the maintenance claim depends upon reaching a figure you can both accept. If you do reach such agreement the existing order should be supplemented by a final court order dismissing all claims in return for payment of the lump sum. Getting it formalised in that way is important because if you do not do it this way you would be risking throwing your money away.
Re: Capitalisation of periodical payments
deltafox - 16 May, 2017 08:24AM
Hi davidterry,

thanks for your quick response. I understand that and I would need a Section 28 bar in any order that was written

Say the actuarial value came out at £70k, could I force my ex to accept this or is it at his discretion whether to accept it or not?

Re: Capitalisation of periodical payments
davidterry - 16 May, 2017 10:36AM
>>Say the actuarial value came out at £70k, could I force my ex to accept this

No. Your ex may prefer to receive a steady income for the next 9 years. This is not a situation where you can force a given outcome. This is not a situation for a section 28 bar either come to that. Assuming you can reach agreement upon a lump sum your ex's claim for periodical payments will simply be dismissed in any court order.
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