It will be observed that though the amount of lump sums will not be variable (the reasons for this are set out in paragraph 89 of the Report) the provisions relating to the instalments or any security therefor will be variable. A change of circumstances may make it just either to extend or to curtail the time of payment of the instalments or, indeed, to increase or reduce the number of instalments.
And after a number of the instalments have been paid it may be reasonable to reduce the amount of the security.” (emphasis added)71.The emphatic recommendation of the Law Commission was therefore that the variation of a lump sum payable by instalments could not alter its overall quantum. The timing and size of the instalments could be altered, but the overall quantum had to stay the same. A careful reading of the provisions in the draft Bill shows that the power to vary applied only to the instalments and not to the amount of the lump sum itself. This was a crucial feature of the new scheme which appears to have been overlooked in all the later cases which have considered the variability of a lump sum payable in instalments.72.The Bill was enacted by Parliament largely unchanged as the Matrimonial Proceedings and Property Act 1970. Parliament must be taken to have accepted and implemented the prohibition on statutory variation of the quantum of all lump sums, whether or not paid in instalments, as proposed by the Law Commission.73.A significant addition was made to the draft Bill at some stage during its parliamentary journey. Section 2(2)(c) as enacted allowed the court to make an order that either party to the marriage shall pay to the other such lump sum
- Approved Judgment
- Mr Justice Mostyn:
- its importance is mainly, of course, in cases where a lump sum has been ordered to be paid by instalments. In our view variations should not be permitted
- In our view once an order for a lump sum has been perfected its amount should not be variable whatever may happen later.
- It will be observed that though the amount of lump sums will not be variable (the reasons for this are set out in paragraph 89 of the Report) the provisions relating to the instalments or any security therefor will be variable. A change of circumstances may make it just either to extend or to curtail the time of payment of the instalments or, indeed, to increase or reduce the number of instalments.
- or sums
- Although at first sight the meaning and purpose of section 2(2) of the Act is not entirely clear, it seems to me that it is merely a declaratory subsection, for on any construction section 2(1)(c) at least allows sums to be ordered on a first application.”
- …(c) an order that either party to the marriage shall pay to the other such lump sum or sums as may be so specified.
- this section
- that sum