Clean break orders - what are they and when are they appropriate?

What is a clean break order?

A clean break order is a court order that permanently ends the financial ties between divorcing spouses. It prevents either party from making future financial claims against the other's income, assets, or estate, providing certainty and finality to the financial settlement.

Legal effect

The order permanently dismisses future financial claims including :-

• Claims against income and capital

• Claims against pension assets

• Claims against inheritances or windfalls

• Rights to claim maintenance

• Claims against the other's estate on death

When is a clean break appropriate?

Divorcing parties are able in principle to agree whatever they like between themselves regarding finances. However, in practice, without a court order, any agreement, even in a formal document, must be recorded by a court order. This means it's important to consider whether the Court will feel the need to interfere in any agreement and/or in what circumstances a Court might order a clean break if there is no agreement between the parties.

Suitable scenarios, in our experience, will typically include :-

• Short marriage with no children - where the marriage was brief and there are no ongoing childcare responsibilities, a clean break is often ideal. Both parties can move forward independently without ongoing financial entanglement.

• Financial independence - when both parties have similar earning capacity or sufficient independent resources to maintain their standard of living without support from the other.

• Later life divorce - where both parties are retired with established pension provisions and no dependent children, allowing for a straightforward division of assets.

Where there are young children, a clean break is extremely unlikely.

Implementing a clean break

To obtain the all important court order for a clean break, certain steps in teh divorce process will need to have been properly completed, the most important being that both parties must provide complete information about their assets, income, and liabilities to each other. This ensures the settlement is based on accurate information and reduces the risk of future challenges.

Once approved, a clean break order is very difficult to change even if circumstances alter. Future inheritance or windfall claims are barred.