A clean break order is a financial arrangement approved by the Court that enables spouses to sever the financial ties between them and remove any risk of future financial claims against to one another. Once granted, it prevents either spouse from making further claims on the other’s income, property, pensions, future inheritances, or windfalls such as gifts or lottery winnings.

Why consider a Clean Break?

There are several benefits to securing a clean break:

• Certainty: You can move forward knowing your financial relationship has been formally concluded.
• Protection of future assets: A clean break ensures that future capital, property, income, or pensions are safeguarded against claims by your former spouse.
• Avoiding future disputes: By resolving finances now, you reduce the risk of lengthy and costly legal disagreements later.

Without a clean break, your former spouse could, for example, make claims on assets you inherit or receive in the future, leaving you exposed to potential financial claims even years after your divorce. One of the most high-profile cases of this nature involved parties who had divorced in the early 1990s but did not deal at that time with the financial claims arising. The husband subsequently became a multi-millionaire, and the wife successfully made a claim against him in 2011, as a result of which she secured enough money to buy a home for herself and pay her legal fees, despite the 20-year delay.

When a Clean Break may not be suitable

Although a clean break offers many advantages, it is not always possible. Two common situations where it may not be appropriate include:

• Ongoing financial needs: If one party cannot meet their needs from their own resources, and there is not enough cash to fund a lump sum payment, the Court may keep the option of future maintenance open.
• Young children: If there are dependent children, uncertainties about future financial responsibilities such as unexpected childcare needs may mean it is prudent to leave maintenance options available.

How the process works

A clean break is usually considered as part of an overall settlement of financial claims, formalised into a financial remedies order, which cannot be submitted to court for review until after pronouncement of the conditional order (formerly known as the decree nisi). Ideally, all financial claims should be resolved together before the final order of divorce (formerly known as the decree absolute). If you cannot resolve the claims by agreement, bear in mind that applying to the court at the correct stage is important, as delays after the final order of divorce can complicate matters, especially regarding pensions.

A clean break can be part of a range of outcomes described in a financial remedies order, or even the only outcome described in a financial remedies order. Before a financial remedies order will be made binding by the court, both parties must disclose their assets, property and debts to the other party, usually in a joint D81 statement of information form, which is submitted to the Court alongside the financial remedies order. The Court will then review these details and, where appropriate, approve a clean break so that all assets and liabilities are fairly shared, and financial ties are formally cut.

Moving forward with confidence

A clean break order offers certainty, protection, and a clear end to financial obligations between former spouses. While it may not be suitable in every case, understanding your options and having the right guidance can help you make informed decisions about your post-divorce finances.

Support

At Porter Dodson, our experienced family law team can provide clear advice on whether a clean break is appropriate for your situation and help you navigate the process of resolving financial claims confidently. Get in touch to discuss your personal circumstances.