Key points
This case in 30 seconds
- Situation
- The spouses had agreed on spousal maintenance and wanted to pay it in one lump sum, but their agreement did not say that neither side would claim against the other again.
- Approach
- We helped the client organise the financial information first, and reminded them that the agreement must clearly state the lump sum and that there will be no further claims.
- Result
- Once the agreement was approved as a consent order, neither spouse had to pay the other anything more in spousal maintenance, and each could start a new life.
Three points to spell out for a lump sum
- The agreement states the lump sum and that neither side will make any further claim against the other.
- A lump sum payment generally cannot be changed.
- After signing, we help prepare the documents and remind the client to apply to the court on time for the agreement to be approved as a consent order.
Background
The client and the other spouse had agreed on spousal maintenance and wanted to pay it in one lump sum.
Neither wanted money passing between them every month.
Their finances had long been separate. Only the spousal maintenance was still not written down clearly.
The client worried that, if the agreement was not clear, money could still bring them back into contact later.
- Not sure how clearly the lump sum should be written
- Worried the other spouse might still claim later
- Did not know whether a signed agreement already has legal force in court
They had looked for templates online, but the wording varied from one to the next, and they were not sure what counted as clear.
Only once this was clear did they begin to negotiate the lump sum.
They wanted to settle it for good, so they would never need to contact each other about money again.
To settle it in one go, the first task is to organise the information on spousal maintenance.
Why must the agreement say ‘lump sum’ and ‘no further claims’?
This case chose a lump sum because neither spouse wanted to be in contact over money later.
Spousal maintenance: what is the difference between a lump sum and monthly payments?
Whether it is paid monthly or as a lump sum, until when, and whether it can be adjusted later.
A lump sum is paid, but the agreement does not say that neither side will claim again.
What should the agreement say about the lump sum?
The agreement states the lump sum and that neither side will make any further claim against the other.
The table below compares monthly payments and a lump sum on money passing between the spouses, later adjustment and later claims.
| Monthly payments | Lump sum | |
|---|---|---|
| Payment methods | Paid regularly every month | Paid off in one go |
| Can it be changed later? | You can apply for a change if circumstances change significantly | Generally cannot be changed |
| Later claims | If not stated, further claims may be made later | The agreement states that neither side will claim against the other again |
| Money between the spouses | You still need to stay in touch every month | No money passes between you after the lump sum |
A lump sum payment generally cannot be changed.
We helped draft the terms of the agreement and explained what needs careful thought: once a lump sum is ordered, it is hard to change.
Once the lump sum and the no-further-claims term are clearly written, neither spouse needs to worry about disputes over maintenance later.
After signing, how does the agreement go to court?
For the six parts in detail, see “Divorce agreement”. For a similar approach, see “A case with a fallback plan for remortgaging the property”.
We recommend that each of you takes independent legal advice, so that the agreement stands on firmer ground later.
With the lump sum and the no-further-claims term settled, what remains is how each stage works in practice.
How we helped
From the first consultation to the consent order application, the same dedicated consultant follows your case. Our help comes in three stages.
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Organising the financial information
From the first consultation
At the first consultation, the dedicated consultant first learned what the spouses had agreed on spousal maintenance.
We helped the client organise the financial information on spousal maintenance first.
With the information complete, there is a firmer basis for negotiating the amount.
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Negotiating the lump sum
Once everything is in order
The spouses wanted their finances settled in one go.
We reminded the client that the agreement must clearly state the lump sum and that neither side will claim again.
Stating the amount and the no-further-claims term clearly is the most important part of this step.
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Signing and applying for the consent order
After signing
After signing, we help prepare the documents and remind the client to apply to the court on time for the agreement to be approved as a consent order.
Apply on time. The consent order takes effect once it is granted.
Throughout, the client could phone the dedicated consultant at any time, in Cantonese, Mandarin or English.
We explained every court letter first, and what needed following up.
We are a divorce consultancy. We help you organise information, prepare documents and understand the procedure. If your case needs legal advice or a representative in court, we will tell you honestly and help you make other arrangements.
With the three stages joined up, this was the outcome.
Outcome
Once the agreement was approved as a consent order, neither spouse had to pay the other anything more in spousal maintenance, and each could start a new life.
Because the agreement stated the lump sum and that neither side would claim again, neither spouse needed to stay in contact about maintenance.
Throughout, the dedicated consultant helped draft the terms from the couple’s financial information, and explained them clause by clause before signing.
If an agreement does not state the lump sum or the no-further-claims wording, a dispute over maintenance can still arise later.
Now that the agreement is clear, neither spouse needs to worry about the spousal maintenance arrangement.
This case involved no property and no arrangements for children, so the discussion was only about the spousal maintenance itself.
If a case involves property or children, the agreement has extra parts to deal with, and the approach is different.
The same agreement was followed from the first consultation to the consent order application, so the client did not have to explain things again to different people.
How does the procedure change if your situation is different?
This approach suited the case because both spouses had agreed on the lump sum. If the situation is different, the approach changes too.
Still negotiating monthly payments: if you have not yet decided between a lump sum and monthly payments, first look at how regular payments work and how they can be adjusted later.
Already signed, want to change the amount: once a lump sum has been agreed and ordered, it is generally hard to change, so think it through before signing.
Want to read other cases too: a similar situation may also relate to “A case with a fallback plan for remortgaging the property” or “A case where a visiting schedule is written into the agreement”, which you can read together.
Three things you can do first in a similar situation
- First find out whether you both agree on a lump sum.
- Organise the financial information on spousal maintenance.
- First ask the dedicated consultant what the agreement needs to say clearly.
- Learn how a lump sum differs from monthly payments in whether it can be adjusted later.
FAQ
Can spousal maintenance be paid off in one lump sum?
Whether it is paid monthly or as a lump sum, until when, and whether it can be adjusted later.
After a lump sum, can the other spouse claim again later?
The agreement states the lump sum and that neither side will make any further claim against the other.
Can the lump sum be changed later?
A lump sum payment generally cannot be changed.
Does a lump sum also cover child maintenance?
Child maintenance is the child’s right, and the court can still make orders later according to the child’s needs.
Once both sides sign the agreement, is it already in force?
An agreement exists between the two sides, but the court is not bound by it.
When does the agreement become a court order?
Only when the agreement is submitted to the court and made a consent order (a court order that records the terms you agreed) does it become a court order, which can be enforced if the other side does not comply.
When does the agreement start to apply after the consent order is granted?
After the court grants the consent order, matters such as transferring the property and paying maintenance are carried out as agreed.
Do you give legal advice or represent clients in court?
We are divorce consultants. We help you gather information, prepare documents and understand the procedure.
If your case needs legal advice or court representation, we will tell you honestly and help you make other arrangements.
Does each of us need a solicitor before signing?
We recommend that each of you takes independent legal advice, so that the agreement stands on firmer ground later.
Do cases like this usually involve property or children?
This case involved no property and no arrangements for children, so the discussion was only about the spousal maintenance itself.
Illustrative case: this page is adapted from similar cases we have handled. The people and details have been changed, and it is not a record of an identifiable client.
Every case is different, and the time taken and the result will vary. This page is general information only. It is not legal advice and is not a promise about your case.
