diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 55cf9fb65..1eb1b0f10 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -4603,10 +4603,13 @@ func (lc *LightningChannel) CreateCloseProposal(proposedFee btcutil.Amount,
 	ourBalance := localCommit.LocalBalance.ToSatoshis()
 	theirBalance := localCommit.RemoteBalance.ToSatoshis()
 
+	// We'll make sure we account for the complete balance by adding the
+	// current dangling commitment fee to the balance of the initiator.
+	commitFee := localCommit.CommitFee
 	if lc.channelState.IsInitiator {
-		ourBalance = ourBalance - proposedFee
+		ourBalance = ourBalance - proposedFee + commitFee
 	} else {
-		theirBalance = theirBalance - proposedFee
+		theirBalance = theirBalance - proposedFee + commitFee
 	}
 
 	closeTx := CreateCooperativeCloseTx(lc.fundingTxIn,
@@ -4665,10 +4668,13 @@ func (lc *LightningChannel) CompleteCooperativeClose(localSig, remoteSig,
 	ourBalance := localCommit.LocalBalance.ToSatoshis()
 	theirBalance := localCommit.RemoteBalance.ToSatoshis()
 
+	// We'll make sure we account for the complete balance by adding the
+	// current dangling commitment fee to the balance of the initiator.
+	commitFee := localCommit.CommitFee
 	if lc.channelState.IsInitiator {
-		ourBalance = ourBalance - proposedFee
+		ourBalance = ourBalance - proposedFee + commitFee
 	} else {
-		theirBalance = theirBalance - proposedFee
+		theirBalance = theirBalance - proposedFee + commitFee
 	}
 
 	// Create the transaction used to return the current settled balance
diff --git a/lnwallet/channel_test.go b/lnwallet/channel_test.go
index 0a44c212e..b8b603dc4 100644
--- a/lnwallet/channel_test.go
+++ b/lnwallet/channel_test.go
@@ -1807,7 +1807,7 @@ func TestCooperativeCloseDustAdherence(t *testing.T) {
 	// Both sides currently have over 1 BTC settled as part of their
 	// balances. As a result, performing a cooperative closure now result
 	// in both sides having an output within the closure transaction.
-	aliceFee := btcutil.Amount(aliceChannel.CalcFee(aliceFeeRate))
+	aliceFee := btcutil.Amount(aliceChannel.CalcFee(aliceFeeRate)) + 1000
 	aliceSig, err := aliceChannel.CreateCloseProposal(aliceFee,
 		aliceDeliveryScript, bobDeliveryScript)
 	if err != nil {
@@ -1815,7 +1815,7 @@ func TestCooperativeCloseDustAdherence(t *testing.T) {
 	}
 	aliceCloseSig := append(aliceSig, byte(txscript.SigHashAll))
 
-	bobFee := btcutil.Amount(bobChannel.CalcFee(bobFeeRate))
+	bobFee := btcutil.Amount(bobChannel.CalcFee(bobFeeRate)) + 1000
 	bobSig, err := bobChannel.CreateCloseProposal(bobFee,
 		bobDeliveryScript, aliceDeliveryScript)
 	if err != nil {
@@ -1874,10 +1874,12 @@ func TestCooperativeCloseDustAdherence(t *testing.T) {
 		t.Fatalf("close tx has wrong number of outputs: expected %v "+
 			"got %v", 1, len(closeTx.TxOut))
 	}
-	if closeTx.TxOut[0].Value != int64(aliceBal.ToSatoshis()-calcStaticFee(0)) {
+	commitFee := aliceChannel.channelState.LocalCommitment.CommitFee
+	aliceExpectedBalance := aliceBal.ToSatoshis() - aliceFee + commitFee
+	if closeTx.TxOut[0].Value != int64(aliceExpectedBalance) {
 		t.Fatalf("alice's balance is incorrect: expected %v, got %v",
-			int64(aliceBal.ToSatoshis()-calcStaticFee(0)),
-			closeTx.TxOut[0].Value)
+			aliceExpectedBalance,
+			int64(closeTx.TxOut[0].Value))
 	}
 
 	// Finally, we'll modify the current balances and dust limits such that