Lump sum and property adjustment orders — the financial remedy toolkit

REVIEWED BY: Sean McNamara on 2026-08-30

When a court divides finances after divorce, the orders it can make fall into a small number of types. Understanding them helps you frame what you're asking for — and what a settlement actually delivers. This guide covers lump sum orders and property adjustment orders, the two workhorses of financial remedy. It is general information, not legal advice.

The toolkit in one view

| Order | What it does | |---|---| | Lump sum order | One spouse pays the other a fixed sum of money, on defined dates | | Property adjustment order | Transfers, sells or settles property — including the family home | | Pension sharing/attachment | Divides or directs pension rights | | Periodical payments (maintenance) | Regular income support, term or joint-lives | | Clean break clause | Dismisses future claims (usually attached to the above) | | Legal services payment order | Pays the other side's legal fees (need-based) |

Lump sum orders

A fixed amount, payable by instalments and dates specified in the order
Used for: equalising capital, buying out the other's share of the house, compensating for pension offset, paying off joint debts, funding a rehousing deposit
Secured vs unsecured: a lump sum can be secured against property (a charge) so non-payment gives you enforcement against the asset — worth asking for where the payer is flaky
Interest: judgment-interest provisions apply to unpaid lump sums; enforcement routes (third party debt orders, charging orders, attachment of earnings) are available — see our enforcement guide
Staged lump sums: payment can be structured over time (e.g. on the youngest child turning 18, or on a business sale) — flexibility, but with enforcement risk on the later tranches

Property adjustment orders

The court can order, in respect of property (most obviously the family home):

Transfer: the home (or a share) moves from one party to another — the most common order; typically the primary carer keeps the home, often with a charge or Mesher-style arrangement
Sale: the property is sold and proceeds divided in set percentages
Settlement of property: property is settled on trust for a party or child
Partition/sequential orders: including Mesher orders — the house is retained (usually by the parent caring for the children) until a trigger (youngest child finishing school, remarriage, or a set date), then sold and proceeds split
Occupation rights: adjusting who may occupy meanwhile

Mesher vs Martin orders (plain terms)

Mesher order: sale deferred until the children no longer need the home — the children's stability is bought with a deferred capital split
Martin order: same idea but triggered by the occupying party's remarriage (common where children aren't the driver)
Both carry trade-offs: the deferred party's capital is locked; the occupying party carries maintenance of the asset they partly don't own

How courts decide the split

The statutory criteria (Matrimonial Causes Act 1973, section 25) — needs, resources, standard of living, ages, duration of marriage, contributions, disabilities, children — produce a needs-based outcome in most cases: housing for both parties and the children first, then capital division, then pensions, then maintenance if needed. The "50:50 starting point" applies to surplus after needs are met, and contributions (special or otherwise) can shift it.

Implementation — after the order

Transfers go to the Land Registry with the certified order; timelines are in the order (usually 14–28 days)
Mortgage considerations: a party remaining on the mortgage after transferring their share should secure an indemnity in the order — and seek release from the lender
Sales: the order sets the mechanism (agents, minimum price, division of proceeds); a stalled sale can be forced by application
Lump sums unpaid: enforce — act early (permission is needed for arrears over 12 months)

Tax and benefits notes (plain terms)

Transfers between spouses under a court order in connection with divorce are generally no gain/no loss for capital gains tax (but note the CGT treatment of transfers in the tax year of separation and after — check current HMRC rules)
A lump sum is not income-taxable
Receiving a capital settlement can affect means-tested benefits — take advice before structuring

Official links

YourFamilyCase.co.uk is an independent information directory — we are not affiliated with, endorsed by, or connected to HMCTS or gov.uk. This page is general information and is not legal advice.

Content verified against the official HMCTS court directory, gov.uk forms and fees pages, and the professional body registers (SRA, FMC, Bar Council). Last reviewed September 2026.