Clean Break Financial Settlement – Duxbury Calculations
Family Mediation Services | Michelle Solomon, Accredited Mediator
Introduction: What Is a Clean Break Financial Settlement?
Going through a divorce is never easy. However, reaching a clean break financial settlement can give both parties the freedom to move forward with their lives. At Family Mediation Services, our accredited mediator Michelle Solomon combines her expertise as a retired family lawyer and trained accountant to guide you through this process. As a result, you can achieve a fair and lasting financial agreement without the stress and cost of court.
A clean break financial settlement means that both parties end all financial ties after divorce. In other words, instead of ongoing spousal maintenance payments, one party receives a lump sum. This lump sum replaces any future financial dependency. Furthermore, a clean break divorce settlement offers certainty — so you can plan your future with confidence.
One of the most important tools used to calculate this lump sum is the Duxbury calculation. Moreover, this method is widely used by family lawyers and courts across England and Wales. At Family Mediation Services, we use the same approach to help you reach a fair and informed agreement.
What Are Duxbury Calculations? A Plain English Guide
Duxbury calculations convert future spousal maintenance into a single capital payment. Therefore, instead of receiving monthly payments for life, a party receives one lump sum that covers all future needs.
Here is a simple example. Suppose a party needs £25,000 per year for life. Using the Duxbury tables, our accredited mediator can calculate the lump sum needed to fund that income. In this case, the lump sum would be approximately £320,000. That sum is then invested. As a result, it pays out £25,000 per year for the rest of that person’s life. When the fund runs out, the payments stop — because the Duxbury method assumes the capital is fully used up by the end of the recipient’s life expectancy.
Consequently, the Duxbury tables take several key factors into account, including:
- The recipient’s age and life expectancy
- The annual income they need to maintain their lifestyle
- Assumed investment returns (typically around 3.75% per year in real terms)
- Inflation and likely tax charges on investment income
Because these factors all interact, the calculation can be complex. That is why Michelle Solomon works with actuaries and financial experts to ensure accuracy.
| 💡 Key Point: The courts view Duxbury calculations as “a tool, not a rule” (White v White, 2000). Therefore, our accredited mediator will always consider your individual circumstances before arriving at a final figure. The aim is always fairness. |
How Can a Clean Break Settlement Be Structured?
A clean break financial settlement does not always have to take the form of a direct cash payment. In fact, there are several ways to structure a spousal maintenance lump sum or capital award. Specifically, your settlement can include:
- A cash lump sum payment — the most straightforward option
- A property adjustment order — for example, transferring the family home to one party
- A pension share — where part of one party’s pension is transferred to the other
- A combination of the above — often called a hybrid settlement
However, it is important to note that a clean break is only possible when both parties have enough assets. If there is not enough capital to fund a lump sum, ongoing periodical payments may be more appropriate. Our accredited mediator will help you explore all the options available to you.
The Mediation Process: What to Expect
At Family Mediation Services, we understand that every case is different. Therefore, we offer a structured yet flexible process to help you reach a fair clean break divorce settlement. Here is what you can typically expect:
Step 1 – Initial Meeting (MIAM)
To begin with, you will attend a Mediation Information and Assessment Meeting (MIAM). At this meeting, Michelle Solomon will explain the mediation process and assess whether mediation is right for your situation.
Step 2 – Financial Disclosure
Next, both parties share full financial information. This step is essential — because without full transparency, it is impossible to calculate a fair clean break financial settlement.
Step 3 – Discussion Sessions (Approximately 6 Sessions)
Over approximately six confidential sessions, your accredited mediator will guide you through discussions about your financial needs, assets, and options. During these sessions, Michelle will use the Section 25 factors (explained below) as a framework. As a result, you can explore a range of settlement options, including Duxbury calculations, in a safe and structured environment.
Step 4 – Reaching Agreement
Once you reach an agreement, your mediator will produce a Memorandum of Understanding. You can then take this document to your solicitors to turn it into a legally binding consent order.
Hybrid Mediation — When Is It Available?
Sometimes, having solicitors present during mediation sessions adds value — especially in complex financial cases. This approach is called hybrid mediation. Please note that hybrid mediation is priced differently from the standard mediation model. Contact Family Mediation Services for further details.
How Do the Section 25 Factors Shape Your Settlement?
Whether you go to court or use mediation, the Section 25 factors of the Matrimonial Causes Act 1973 shape the outcome of any financial settlement. Similarly, Michelle Solomon uses the same factors in the mediation room. Therefore, the final agreement will reflect what a court would likely order.
The Section 25 factors include:
- The income, earning capacity, property, and financial resources of each party
- The financial needs, obligations, and responsibilities of each party
- The standard of living enjoyed during the marriage
- The age of each party and the length of the marriage
- Any physical or mental disability of either party
- The contributions each party has made to the family’s welfare
- The conduct of each party (in very limited circumstances)
- The value of any benefit either party will lose as a result of the divorce (e.g., pension)
Furthermore, the welfare of any children of the family is always the court’s first consideration. Consequently, your mediator will also keep this at the forefront of all discussions.
Variation of Previous Financial Agreements: What You Need to Know
Sometimes, circumstances change after a court order is made. As a result, one party may need to apply to vary a previous maintenance order. However, this process is not straightforward.
First, the assessment is needs-based. In other words, the court or mediator will look at what the payee (the person receiving the money) actually needs today — not what was agreed in the past. Importantly, the burden falls on the payee to justify why they still need ongoing financial support. They must demonstrate a continuing need for dependency.
In addition, there is no definitive rule about how to treat any capital the payee has built up since the original order. Nevertheless, the overriding duty is to promote fairness. Therefore, if the payee has acquired significant assets since the original order, the court may reduce or end the maintenance. Consequently, mediation can be a faster and more cost-effective way to renegotiate these arrangements.
| ⚖️ Remember: Variation applications are needs-based. The payee must justify their continuing financial dependency. Family Mediation Services can help both parties reach a fair revised agreement without the cost and delay of returning to court. |
Ready to Explore a Clean Break Financial Settlement?
At Family Mediation Services, Michelle Solomon brings a unique combination of legal expertise, accountancy skills, and accredited mediation training. As a result, she is ideally placed to help you navigate the complexities of a clean break financial settlement — including Duxbury calculations and Section 25 factors.
Whether you are starting the process from scratch or looking to vary an existing agreement, we are here to help. Over approximately six confidential sessions, you can work toward a fair, lasting divorce financial settlement — at a fraction of the cost of court proceedings.
| 📞 Contact Family Mediation Services today to book your initial MIAM appointment. Michelle Solomon — Accredited Mediator | Retired Family Lawyer | Trained Accountant Call us now or visit our website to start your journey toward financial independence. Taking the first step toward a clean break is easier than you think. |
Frequently Asked Questions (FAQs)
A clean break financial settlement ends all financial ties between divorcing parties. Instead of ongoing spousal maintenance, one party receives a lump sum. Consequently, both parties can move forward independently. Duxbury calculations are often used to work out the right lump sum amount.
A Duxbury calculation converts future spousal maintenance into a single capital payment. It takes into account the recipient’s age, life expectancy, annual income needs, and assumed investment returns. Therefore, the recipient will receive payments for as long as they live and nothing is left at the end.
Most clean break financial settlements at Family Mediation Services take approximately six confidential sessions. However, more complex cases — for example those involving Duxbury calculations or pension sharing — may take longer. Your accredited mediator will give you a clearer estimate after your initial MIAM.
In standard mediation, both parties attend sessions with the mediator only. In contrast, hybrid mediation allows solicitors to attend alongside the parties. As a result, it suits more complex or high-value financial cases. Please note that we price hybrid mediation differently from the standard model.
Yes. A clean break settlement does not have to be a cash payment. Instead, it can take the form of a property adjustment order, a pension share, or a combination of both. Your accredited mediator will help you explore all the available options based on your individual circumstances.
The Section 25 factors come from the Matrimonial Causes Act 1973. They are the criteria that courts use to assess what financial provision is fair on divorce. Importantly, Family Mediation Services uses the same factors in the mediation room. Therefore, any agreement you reach in mediation will reflect what a court would likely order.
Yes. If your circumstances have changed since a previous order, you can use mediation to renegotiate the terms. However, the court assesses any variation based on needs.
Therefore, the payee must show they still have a genuine need for ongoing financial support. Our accredited mediator can guide both parties through this process fairly and efficiently.
Not always. As the courts have noted, Duxbury is a tool, not a rule. Therefore, it may not be appropriate in every case. For example, if the recipient is young or their income needs are uncertain, a different approach may be fairer. Michelle Solomon will assess your individual situation and recommend the most appropriate method.
Family Mediation Services | Michelle Solomon — Accredited Mediator, Retired Family Lawyer & Trained Accountant | This blog is for information only and does not constitute legal advice.