Wednesday, December 19, 2012

Family Lore Clinic: Does a divorce court order carry interest on a lump sum?


Yes it does, provided either:

(a) the order includes a provision that interest is payable; or

(b) the order does not include a provision for interest, but the lump sum is at least £5000.

In each case, interest will be payable from the date by when the lump sum must be paid (the order will state this date). If the order includes a provision that interest is payable, it will also specify the rate of interest. If the order does not include a provision for interest, the rate will be the current 'prescribed rate', which is presently 8% per annum.

(As usual, this is necessarily a simplification of the law. If you require more details or specific advice, you should consult a specialist family lawyer.)

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