A clean break order is a financial settlement between you and your former spouse that has been approved by the court. It allows you to become financially independent following a divorce and means you agree how your property, savings and other assets are to be divided between you, once and for all. Once a clean break order has been finalised, neither of you will be able to make any further financial claim against the other.
If one of you is financially dependent on the other, it may be difficult to reach a clean break agreement unless there is enough money available to pay a lump sum as part of a fair settlement. If one of you takes care of your children and has low or zero income, a spousal agreement may be a better option.
If you have limited financial claims against each other, a clean break order is a good option and is most likely if you have been married for a relatively short time, have no children and earn similar incomes. You are unable to enter a clean break entirely if you have children who are eligible for child maintenance however you can agree a clean break that covers other financial claims.
Does the length of the marriage affect a clean break order? The court looks differently at short and long marriages and may consider a marriage to be short if the couple didn’t live together before the marriage and if they were together for less than 5 years. The court considers a long marriage to be one where the couple lived together for some time before the marriage and have been married for more than 5 years.
In a short marriage, the court might decide that each person should leave the marriage with what they brought into it. Each individual would be required to provide financial records showing their assets when they married and would need to sign an agreement that they forego any entitlement to their ex-spouse’s pension.
Advantages of a clean break A clean break is often the better solution as opposed to continuing spousal maintenance. The court will always look to see whether a clean break order would be fair and reasonable if you are unable to agree a financial settlement between yourselves. For some divorcing couples, becoming financially free from your former spouse may be preferable, although a clean break also helps reduce the potential risks and uncertainty of continuing to pay or receive spousal maintenance.
What happens when the clean break agreement ends? A clean break agreement considers the assets and income that each of you have and the longer you have been married, the more likely the less wealthy partner will be entitled to a substantial share of the assets.
Not only do you need to agree how much each individual is entitled to, you need to agree how specific assets will be shared out. An example would be one of you may wish to remain in the family home while the other receives a significantly higher share of all other assets.
Pension entitlements are also covered in the clean break agreement and these can be a very valuable asset. Any debts such as a mortgage will also be dealt with as part of a clean break agreement.
It should also be made clear that neither party will be able to make any future financial claims against each other including making any claim against your former spouse’s estate if they die before you.
To make your agreement final, a consent order must be signed by both parties and agreed by the court. Until a clean break order has been reached, either one of you could change your mind.
How we can help: You should be realistic about what you are expecting to achieve and getting expert advice can really help you gain clarity about where you stand allowing you to feel more in control of the situation. Contact us today on 01772 494366 to gain advice and support through the process.