How Long Do I Have to Pay a Financial Settlement?
June 2025
Once a financial settlement has been agreed upon, it is essential to understand how long the obligations will last, and the effective date of each transaction. The duration and terms of a financial settlement can vary depending on the type of financial arrangements involved, the nature of the assets, and the needs of both parties.
This summary provides general information and does not constitute legal advice on any individual circumstances.
In the UK, there are various types of financial settlements that can be reached during a divorce or the dissolution of a civil partnership. These include lump sum payments, ongoing maintenance, and property settlements. The duration of the order, and also how long it can take to be implemented, will therefore be guided by the nature of the financial settlement you have reached, and how that is recorded in its terms.
If the settlement involves a lump sum amount, this is usually made as a one-off payment, however it can also be paid in instalments, depending on the circumstances. The funds may come from a bank account, and therefore be available immediately, but they may also rely on the sale of an asset, which may require a little time to achieve. Whether settled in one transaction, or broken up into smaller instalments, there is no ongoing obligation to pay once the total sum has been paid in full.
If the settlement involves maintenance, the payments may be required for a longer period. Lifetime maintenance awards are increasingly rare, however temporary maintenance may be awarded if one party needs financial support for a limited period, for example, while they retrain or find employment. The appropriate term for the maintenance will be determined by factors such as the length of the marriage or civil partnership, the financial needs of the party receiving the payments (factoring in their own ability to meet those) as well as the paying party’s ability to make the maintenance payments.
Enforcement of Financial Settlement Payments
If you have been ordered to make a payment as part of your financial settlement, it is crucial to understand that these payments are legally binding. If the paying party fails to comply with the terms of the settlement, the recipient can apply to the court for enforcement. This could include a range of enforcement actions, such as deductions from wages or a charging order on a property.
If the payments are for a specific period, they will cease once the agreed duration has ended. In some cases, the court may review the payments if there has been a significant change in circumstances, such as the paying spouse’s financial situation improving or the receiving spouse becoming financially independent.
What to Do if You Are Concerned About the Duration of Your Payments
If you are concerned about the length of time you will be required to make payments, it is important to review the settlement agreement and seek legal advice. If you are paying spousal maintenance and feel that the payments are too long or too high, or if your lump sum payment is dependent on an event that then fails to transpire, you may be able to apply to the court for a variation of the order.
Similarly, if you are receiving payments and your financial situation changes, you may be able to apply to the court to have the payments increased or decreased. If you feel that the settlement is unfair or no longer appropriate, it is important to speak with a solicitor who can advise you on the best course of action.
How Can Fullers Help?
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