When a marriage or civil partnership comes to an end, one of the most common concerns is how to deal with finances. Whether it’s about who keeps the home, how pensions are divided, or whether maintenance payments will continue.
A clean break order is designed to provide a clear solution. It’s a type of financial order that formally separates your financial responsibilities from your former spouse or civil partner. In this article, we’ll explain how a clean break order works, outline the advantages and disadvantages, and guide you through the steps you need to take to obtain one.
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What is a clean break in a divorce?
A clean break clause is a specific type of financial consent order used in divorce proceedings. It sets out exactly how your assets will be divided once the divorce is final. It can be issued by mutual agreement or ordered by a judge.
Once the agreed financial settlement has been implemented, it terminates any financial responsibilities, such as spousal maintenance, as well as ties to assets like property, pensions and future assets.
The court actively considers whether financial obligations between parties should be ended, particularly in cases where:
- There are no dependent children
- Both parties are financially self-sufficient
- The marriage was relatively short
- There is a fair division of assets
The court is required to consider whether financial ties can be ended, but only where it is fair and reasonable to do so. A clean break will not be imposed if it would leave one party in financial hardship.
Immediate vs deferred clean breaks
In some cases, all financial claims are dismissed at the point the financial order is made. This means there are no ongoing maintenance payments and no continuing claims against income, capital or pensions. This is known as an ‘immediate clean break’.
In other cases, the court may order spousal maintenance for a fixed period, particularly where one party needs time to become financially independent. At the end of that term, future income claims can be dismissed, achieving a clean break at that stage. This is known as a ‘deferred clean break’.
What assets are covered in a clean break order?
A clean break order can cover all financial claims arising from the marriage. This is broader than many people realise. Even assets you may not consider as major need to be evaluated by the court.
This often includes:
- The family home and other property
- Savings accounts and ISAs
- Investments and shares
- Pension pots
- Spousal maintenance
- Child maintenance
- Inheritance rights between spouses
- Claims against future income
One of the key benefits of a clean break is protection against future claims. Without it, your ex-partner could be able to make a claim against you for future earnings or property.
Do I have to declare assets before obtaining a clean break order?
Both parties must declare any assets they may have before the court can approve a financial order (including a clean break). This ensures that any agreement reached is legally binding and enforceable.
Dividing assets in a divorce can be one of the more sensitive aspects of the process, but demands transparency
If assets are concealed and later discovered, the court has the power to reopen and set aside the order. Withholding assets at this stage can cause serious problems later. For example, the order could be overturned, disrupting the intended financial settlement.
If you are unsure what must be declared or suspect that your ex-partner may not be providing full disclosure, it’s wise to seek legal advice.
Advantages of a clean break order
For many couples, a clean break order can provide significant benefits:
Financial certainty
Because a clean break requires full disclosure of all assets, both parties will have a clear picture of their financial situation. This allows them to plan independently and move on with their lives.
Protection from future claims
Once a clean break order is finalised, neither party can make future financial claims against the other. This prevents unexpected legal disputes or claims for spousal maintenance years after the divorce, giving both parties confidence that the financial settlement is final.
Emotional closure for the parties involved
Ending financial ties can be a huge relief for each partner. It can mean reducing any tension or stress between the couple and seeing that they can focus on rebuilding their lives independently.
Clean financial separation
A clean break means there are no ongoing maintenance payments or continued reliance on the other party for support. Once final, each party is to take responsibility for their own finances and prevent arguments over money in the future.
Note: This does not affect child maintenance. Any payments for children, calculated according to the CMS rates, will still need to be made.
Encourages financial independence
With financial matters resolved, both parties are encouraged to manage their own financial futures. This can help them with long-term planning without being constrained by their obligations to an ex-partner.
Disadvantages of a clean break order
While a clean break can be beneficial, it’s not always the best course of action for every situation:
Loss of future protection
Once financial claims are dismissed under a clean break, they cannot be revived. Should one party’s financial circumstances change significantly, such as through illness, unemployment, or other unforeseen events, the court cannot intervene to provide support.
Potential imbalance
In long marriages, a clean break may not reflect the financial reality. For example, one spouse may have sacrificed career progression to care for children. In another case, one party may find themselves at a disadvantage if their earning potential is lower or if they lack sufficient pension or property assets.
Risk to lower-earning spouse
If one partner has a limited earning capacity, a clean break could leave them financially vulnerable. In these cases, ongoing maintenance may be necessary to ensure fairness, particularly where the lower-earning spouse cannot support themselves as before.
The order cannot be changed once final
There is very little flexibility once the order is approved. Any change in circumstances cannot be revisited in court, so it’s important to carefully consider whether the agreement is fair and sustainable for both parties before it becomes final.
Do both parties have to agree to a clean break order?
Neither party necessarily needs to agree to obtain a clean break order. You can apply to the court for a financial order even if your ex-spouse does not participate or refuses to agree.
That said, in most cases, an agreement is reached jointly, which can save time, reduce legal costs, and avoid the stress of a contested court process. Agreeing amicably also gives you more control over the terms, rather than leaving the decision entirely to the court.
If your ex refuses to consent, you can go through other routes, such as mediation and negotiation, or you can apply to the court directly for a financial order.
When can you get a clean break financial order?
A clean break financial order can generally be requested once your divorce has been granted, though it’s often arranged as part of a financial consent order before the decree absolute. This allows the court to make your agreed financial settlement legally binding, ensuring that both parties are clear about their responsibilities and that there are no future claims.
For expert legal advice, speak to BGW Solicitors. Our team can guide you through the process of obtaining a clean break order, helping you understand your options and represent your interests to ensure a fair and enforceable settlement. Contact us today to arrange an initial consultation.