A clean break order is a settlement used to outline all financial commitments after divorce. It’s given by the court and agreed by both parties during the divorce proceedings.
Its purpose is to provide future protection from either party making financial claims over the other’s income and assets.
This includes:
There are two main options available:
Even married couples that have no joint assets or children together must apply to the court to end their financial ties through a clean break if they want to prevent future financial claims.
You don’t need to become extremely wealthy for a spouse to submit a claim, either. For example, a new business you start after the divorce could highlight a disparity in wealth that an ex-partner may wish to claim against.
You can get a clean break order after the conditional order (previously known as the decree nisi) has been issued. The conditional order is the provisional decree when all legal and procedural steps to getting a divorce have been met. From there:
It’s important that the clean break order meets the requirements of the court as well as your financial needs. Once it’s approved, your ex-partner can’t bring financial claims against you and you can’t pursue financial claims of your own against your former spouse.
For most couples who have been married for under five years, a clean break will be recommended. If you want to cut financial ties quickly once you’re divorced, having a clean break in place can be beneficial because you’ll have everything in place and be able to move on knowing you have security against any potential claims by your ex-partner.
You can both agree on a financial settlement at any time, whether you discuss this shortly after you’ve separated, during divorce proceedings, or after everything is finalised. It’s better to reach these decisions as soon as you can – ideally, before the divorce goes through.
By getting everything ready early, the court can approve the clean break order at the same time as granting the conditional order, making the process as smooth as possible.
A clean break order is typically appropriate for shorter marriages which are usually below five years. The court typically agrees that each party leaves the marriage with what they brought into it. Despite the marriage being short, financial disclosure is still necessary, as well as an overview of the assets they came into the marriage with that they gained independently.
For shorter marriages, the clean break order also usually outlines that each party must not claim against one another’s pension or make a claim for spousal maintenance.
However, for longer marriages, it’s not as easy to reach a clean break. For example, there needs to be a range of ongoing payments to ensure that held assets, such as property, are divided equally between both parties.
Without a clean break, your ex could still have a claim on businesses you launch or properties you buy long after you’ve divorced. However, there are some situations where a clean break order might not be right for you. It’s important that you weigh up the pros and cons based on your circumstances before you go ahead.
Advantages
Any assets or income you receive after the clean break are your own and protected. The order is legally binding and covers both your current financial assets, as well as any future income. So if you were to come into any inheritance, for example, your ex-spouse can’t claim for that.
Once the order has been approved by the court, both you and your former partner’s finances are considered completely separate. This means there’s no need to return to court to discuss finances and assets.
If you can reach a financial settlement between you, it can often reduce the time taken to finalise your divorce. Disputes over money are one of the main holdups in the divorce process. Also, a faster divorce means that you’re less likely to spend as much money on legal fees.
Disadvantages
The longer you’ve been married, the more entwined your lives. This includes your assets and finances, such as homes, cars and joint bank accounts. To work out who owns what can take time and a clean break order won’t always be possible. Instead, you’ll need a consent order.
Many couples will have financial obligations to one another after their divorce, such as spousal maintenance or child maintenance, making it difficult to completely part ways. If one spouse continues to have ongoing financial obligations towards their former partner, this can complicate things too. In this case, a consent order is needed.
If you have children, a standalone clean break order isn’t something you can pursue. This is because the non-custodial parent must pay child maintenance to their former partner. You’ll need a consent order with a clean break clause included instead. This protects your future assets while ensuring the child support payments are met.
It’s important to understand what a consent order is so that you know when one might be needed, potentially with a clean break clause included.
A consent order is a court order that records the details of a financial settlement between a divorcing couple. This has been negotiated beforehand and becomes a legally binding agreement. A clean break can be added to cut all future claims after the divorce is finalised. The team at Stowe can talk you through your options to ensure you know whether a consent order may be required.
In some cases, a clean break cannot be agreed and therefore an application for support may be put forward to the court.
Sometimes a clean break may not be appropriate. For example, for longer marriages, it’s not as easy to reach a clean break.
For the court to be able to confirm the most appropriate action, each party must provide an in-depth full and frank financial disclosure.
Where there are children, especially young children, the court will often ask for an explanation about why a clean break should be entered into before they agree that it’s fair.
When you sign a clean break consent order during a divorce, you are agreeing to the terms set out in the order and giving up any entitlement to make any more financial claims. During the divorce, it is essential that any financial matters are resolved before the clean break order is agreed.
There are cases where the court can overturn the clean break, however – for example, if there has been a case of fraud or if one party failed to make known their property or assets.
We understand that the divorce process can be challenging. It’s not uncommon for the situation to become acrimonious, with one ex-partner refusing to follow some part(s) of the divorce procedure.
If your ex is refusing to sign a clean break order, there are ways you can approach this. It’s worth trying negotiation or seeing if alternative dispute resolution routes could help. This can save time and money in the long run. Your solicitors may be able to help – mediation can be very effective.
Should these methods not work, you can apply to the family court for an order. Here, you’ll need to pay a court fee, make financial disclosures and attend hearings. It can make the divorce process more expensive and prolonged.
If you decide not to get a clean break order, your ex-spouse is within their right to make a financial claim at any point in the future. This means they can request further financial assistance from you regardless of whether you have been divorced for one or 20 years.
Ultimately, it’s up to you and your ex if you want a clean break consent order. However, if your solicitor recommends it, it may be a helpful option.
As it’s an order of the court, your clean break order should be drafted by a solicitor, who will make sure it covers all of the necessary provisions to avoid your ex-spouse making future claims.
If you would like advice on clean break orders, spousal maintenance or any other financial family law issues, please contact our Client Care team, who can put you in touch with a specialist family finance solicitor.
We have over 40 years of experience and we’re proud to offer a tailored service that fits your circumstances. We’re experienced in helping clients navigate the complexities of divorce.
If you’d like to speak with one of our experts, call us on 0330 191 5022 or request a callback.
Sign up for advice on divorce and relationships from our lawyers, divorce coaches and relationship experts.
Privacy Policy