What Is a Duxbury Calculation in Divorce?

What Is a Duxbury Calculation in Divorce?

A Duxbury calculation is a method used in UK divorce law to convert ongoing spousal maintenance into a single lump sum payment. It’s designed to provide the financially dependent spouse with a capital amount that, if invested wisely, would generate enough income to meet their needs for the rest of their life.

This approach is often used when both parties want a clean break - ending financial ties after divorce.

Where Do Duxbury Calculations Come From?

‘Duxbury calculations’ originate from the case of Duxbury v Duxbury [1987] 1 FLR 7, where Mr and Mrs Duxbury had been married for 22 years and upon divorce, were keen for a ‘clean break’ financial settlement. They argued that a lump sum payment was the best way to secure this. 

Mr Duxbury was the higher earner and therefore it was intended that Mrs Duxbury receive the lump sum settlement. Mrs Duxbury’s accountant set to work creating a computer programme to calculate how his client could have a lump sum equivalent for the maintenance payments which would last until her death. The lump sum would therefore have to take into account matters like inflation and the recipient’s life expectancy. 

Thereafter, the process involved in working out the lump sum took on the case’s namesake and has been referred to as a Duxbury calculation. 

However, it is important to note that the Duxbury calculation is not used by the family court to provide a strict figure to be used. As per White v White, the calculation should be used as “a tool not a rule”. 

How Does a Duxbury Calculation Work?

The Duxbury calculation uses actuarial assumptions to estimate:

• The recipient’s life expectancy
• Their annual net income needs
• Expected investment returns
• Inflation and taxation

The Duxbury Tables provide multipliers based on age, gender, and income needs. For example, if a 50-year-old woman needs £40,000 per year, the table might suggest a lump sum of around £692,000.

The goal is that the lump sum, when drawn down annually, will last exactly until the recipient’s expected death - leaving no surplus or shortfall.

how to use the duxbury calculation

The Duxbury calculation is made by consulting a Duxbury table, which can be found within the ‘Family Law: At a Glance’ volumes.  The Duxbury table has columns along the top setting out the annual net income needs required by the party. The annual net income needs tend to be calculated by putting together an annual budget. To the left, there are columns setting out the recipient’s current age and sex. 

Is the duxbury calculation right for me?

The Duxbury method works well where both parties want a ‘clean break’ i.e. they wish to completely terminate all obligations to each other and most importantly, where there are the means to settle the finances by way of lump sum settlement. As attractive as lump sums are, it is simply not possible to settle the finances by way of lump sum if there is insufficient capital. The Duxbury calculations can prove a useful negotiation tool if couples are trying to work out a settlement as they provide a good point of reference for appropriate lump sums. 

The courts will consider fairness in all cases and will be live to issues where the Duxbury calculation can achieve too generous an award for a young recipient who enjoyed a short marriage in comparison to an older recipient who enjoyed a long marriage. The court exercises a narrow discretion when considering whether a case should depart from the Duxbury tables when calculating a lump sum award. 

Although using the Duxbury table is relatively straightforward, it is worth remembering that no case is the same and there may be circumstances that render a case unsuitable for a Duxbury calculation. In all matters of family law, it is always wise to speak with a lawyer and take advice on the options available to you and the fairness of any potential financial settlement. 

Our expert divorce solicitors can advise whether a Duxbury calculation is appropriate in your case and help you secure a fair financial outcome. Contact Vardags today for a free confidential consultation.

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Frequently Asked Questions

Q: What is a Duxbury calculation?

A: It’s a method to convert spousal maintenance into a lump sum based on life expectancy and income needs.

Q: Are Duxbury calculations legally binding?

A: No, they are a guide. Courts may adjust the outcome based on fairness and individual circumstances.

Q: When are Duxbury calculations used?

A: They are typically used when the parties want a clean break, there is sufficient capital to fund a lump sum, and when the court or parties wish to avoid ongoing financial ties. They are especially common in HNW divorces.

Q: Where can I find the Duxbury Tables?

A: They are published in At A Glance by the Family Law Bar Association.

Q: Can Duxbury be used for pensions?

A: Yes, in some cases, courts have used Duxbury to capitalise pension income (e.g. WS v WS).

Q: When are Duxbury calculations not appropriate?

A: They may not be suitable if the paying party lacks sufficient capital, if the recipient’s needs are uncertain or likely to change, and if the parties prefer periodical payments for flexibility.