Clean Break Orders – How To Get One, The Benefits + FAQs
March 14th 2024
When couples divorce, many overlook the consequences of leaving their financial ties unresolved.
Although divorce legally ends the marriage, it does not automatically break the financial connections established during the relationship.
This article explains how to fully sever financial ties post-divorce and how Divorce-Online can support you for only £399—around one-third the cost of a traditional solicitor.
Author: Lara Jayne Davies
This post was written by Lara Jayne Davies. Lara is a family law solicitor specialising in Matrimonial and Private Children matters. She thinks creatively and cost-effectively to assist clients in achieving the best possible outcome whilst always providing the highest levels of client care.
What is a Clean Break Order?
A clean break financial order is a UK court order that permanently ends financial ties between divorced or separated spouses.
It ensures that neither party can make future financial claims on income, assets, or inheritance, achieving full financial independence without ongoing obligations like spousal maintenance.
Agreeing to a clean break settlement means both parties waive the right to future financial claims against each other, ensuring that all financial matters are permanently settled. This agreement finalises the financial aspects of the divorce without ongoing obligations.
A court-approved clean break financial order is the best way to protect your finances after divorce.
It ensures finality by preventing a former spouse from making claims on any future assets or inheritance, allowing you to move forward without financial concerns.
- A clean break settlement can be drafted and prepared before a divorce, but it can only be formally submitted to the court once the divorce reaches the conditional order stage.
- Financial orders are separate from divorce proceedings and are an additional cost. Our clean break financial order for £399 is typically 1/3 the cost of high-street solicitors.
- Seek professional guidance: Working with an experienced family law solicitor is crucial to ensure the clean break financial order is fair and legally binding.
- While mediation isn’t required, it is often recommended when spouses struggle to agree on the terms of a clean break, helping them reach an amicable solution before formalising the agreement.
- While a clean break resolves spousal financial obligations, child maintenance remains a separate responsibility that must still be provided for.
Who Qualifies for a Clean Break Order?
A financial settlement is always advisable during divorce proceedings. However, the appropriate financial order may differ from what you initially think or hear from others.
Short-Term Marriage, No Children
A clean break financial order suits couples married for a short time with no children and limited shared assets.
For instance, if both spouses work full-time, earn similar incomes, and have minimal joint financial commitments, they can agree to divide their savings and end all financial ties.
This avoids spousal maintenance and asset transfers, ensuring a straightforward separation.
Transfer of the Family Home
In some cases, one spouse may agree to transfer the family home to the other as part of a clean break settlement.
No maintenance payments are needed, but the spouse receiving the home waives any future financial claims on the other’s pension or income.
Higher-Earning Spouse Pays a Lump Sum
A higher-earning spouse may offer a lump sum to the lower-earning spouse instead of ongoing maintenance payments.
This arrangement provides immediate financial security while ensuring that no future claims can be made against income, inheritance, pensions, or other assets. It benefits spouses who prefer financial independence over ongoing support.
Should I choose an immediate or deferred clean break order?
There are two types of clean break orders: immediate and deferred.
- Immediate Clean Break: An immediate clean break ends all financial obligations immediately once approved by the court. This option is best if both parties are financially independent and do not need ongoing support, such as spousal maintenance.
- Deferred Clean Break: A deferred clean break allows for financial support to continue for a period before fully cutting ties. This option suits situations where one party is currently financially dependent but expects independence soon. For example, maintenance payments may continue until the dependent party secures stable employment or until children reach a certain age, after which the clean break takes effect.
The Benefits of a Clean Break Order
- Finality: Once the clean break is triggered, neither party can make any further claims against the other’s assets, regardless of any changes in their circumstances.
- Your future assets are protected: The order prevents either spouse from making further claims for inheritance, pension entitlements, or property, in the future. This ensures peace of mind that the financial settlement is final.
- Encourages an amicable divorce: Negotiating a clean break order encourages cooperation between spouses, as both parties are incentivised to settle financial matters without prolonged conflict. This can speed up your divorce process.
- Lower legal fees: Whilst it’s a financial investment to end all future claims (as a divorce does not do this automatically), they are invaluable for truly moving on.
- Psychological relief: By removing the need for further financial entanglement, a clean break supports emotional recovery and allows both individuals to move forward with a sense of freedom and peace of mind.
- Easier to start new relationships: With no financial ties to a former spouse, you may find it easier to remarry or enter new relationships, without concerns over continued maintenance payments or shared finances with a previous partner.
The Disadvantages of a Clean Break Order
While a clean break order can be beneficial, there are several potential drawbacks to consider:
- Finality: Once the court has approved a clean break order, it is extremely difficult, if not impossible, to reopen the case. This finality means you cannot look to set aside the court order simply because you later change your mind about the financial agreement.
- Inflexibility: For a spouse who has been financially dependent, such as a stay-at-home parent, a clean break may leave them with limited resources. Unlike ongoing maintenance, a lump sum can deplete quickly, potentially leaving them financially vulnerable.
- No Future Claims: A clean break prevents either party from making future claims. For instance, if you waive pension rights in exchange for a lump sum, you cannot claim additional pension value if it increases substantially after the order.
- Difficulty Adapting to Changing Circumstances: If one party’s financial situation changes unexpectedly (like losing a job or needing financial support due to health issues), the clean break order remains unchanged. Similarly, the order does not account for positive changes, such as one party acquiring significant assets, like lottery winnings.
- Risk of Unfair Settlements: In some cases, one party may feel pressured to settle quickly or suspect the other party of hiding assets, leading to an inequitable outcome. The finality of a clean break order means any undisclosed assets will not be subject to future claims.
- Additional Costs: Couples who later decide to divorce may incur additional costs, as they may need to replicate the work done in their separation agreement if it is not comprehensive.
Is a Clean Break Order the same as a Financial Consent Order?
No, a clean break order is a specific provision within a financial consent order that enables both parties to sever all financial ties after divorce.
Once approved by the court, a clean break order prevents either party from making future financial claims, including claims on spousal maintenance, pensions, or property. This option is ideal for couples who are financially independent and wish to move forward without ongoing obligations.
A financial consent order, on the other hand, formalises a comprehensive financial agreement between divorcing couples.
It divides all assets, including property, pensions, and savings, according to an agreed-upon settlement. Financial consent orders may include provisions like pension sharing, property transfers, and lump sum or periodic payments.
Unlike clean break orders, consent orders are suited for couples who need continued financial support from one another.
FAQs
For those entitled to receive or required to pay spousal maintenance, opting for a clean break may involve ‘capitalising’ maintenance into a lump-sum payment.
This approach calculates a single amount to effectively “buy out” the need for monthly maintenance, which can be beneficial to both parties. For the recipient, a lump sum provides immediate funds, potentially for a home deposit, and removes dependence on regular payments.
For the payer, it ensures a complete financial separation, shielding future income increases from affecting ongoing obligations.
No, a clean break order cannot typically be overturned or varied once it has been approved by the court and becomes legally binding. The purpose of a clean break is to provide finality in the financial relationship between ex-spouses.
In rare circumstances, such as if there was fraudulent disclosure of assets, it might be possible to challenge the order. However, this would require significant legal evidence, and the court would need to decide whether the challenge is justified.
While it is possible to draft and submit a clean break order without a solicitor, it’s highly recommended to seek legal advice from a solicitor. The legal process involves complex financial considerations, and an experienced family law solicitor can ensure that the order is fair, comprehensive, and legally compliant.
They can also help avoid costly mistakes that could lead to future disputes. The court may be more likely to approve an order drafted by a solicitor, as it ensures that both parties understand the implications of the agreement.
Failing to secure a clean break order can leave you vulnerable to future claims from your ex-spouse. Even if you have no significant assets at the time of divorce, your ex-partner could claim against future wealth, such as inheritances or business profits.
One famous case, Wyatt vs Vince, saw a claim made years after the divorce, with the ex-spouse receiving a substantial settlement.
Once all financial information is provided and both parties agree on the terms, the clean break financial order can usually be drafted within 31 working days.
After the order is submitted to the court, it typically takes 4-6 weeks for the court to review and approve the order. In total, the entire process generally takes around 6-8 weeks from start to finish.
How much does a clean break order cost?
As of the 1st May 2024, the court fee to apply for a clean break order is £58. Court fees are set by the Government and are in addition to any fees you pay to solicitors.
A clean break financial settlement typically costs between £400 and £1,500 depending on the specifics of your case, where you live, and the solicitors you select to assist you.
The simplest way to save money on legal fees is to get a clean break order online. This can cost as little as £399 and potentially save over £1500 compared to local solicitors.
What to do if my ex won’t sign a clean break order?
Fortunately, there are various options available if your ex won’t sign a clean break order after the divorce.
If your former spouse isn’t cooperating and won’t sign a financial order to end your financial ties, the first thing you should do is seek advice from a family law solicitor.
Whilst you have options available, you need to make sure that you choose the best option for your specific circumstances.
Fundamentally, clean break orders are always quicker and far cheaper than ancillary relief proceedings (contested) but will very much depend on how cooperative your ex-husband or wife is.
Generally, it’s recommended you exhaust every other option first, starting with mediation, before involving the court.
In what situations is a clean break divorce possible?
Not all couples can achieve a clean break in divorce.
Financial obligations often continue after divorce, especially if children are involved or if one spouse is a lower earner.
Courts consider the future financial needs of both parties, which may include spousal maintenance payments from the higher-earning spouse to support the lower-earner’s living costs.
These ongoing obligations prevent an immediate clean break and typically require a financial order outlining payment amounts and schedules.
Couples with significant joint assets, such as savings or pensions, may also need to negotiate a fair distribution, which is often documented in a financial consent order to accommodate long-term financial support.
However, for couples with minimal assets and no children, a clean break may be feasible, effectively ending all future financial claims for both parties.
Family lawyers without the high-street cost – Get started online
To ensure a clean break order is suitable for your situation, it’s important to seek legal advice from a family lawyer with experience in financial agreements and divorce.
A solicitor will help draft the agreement and provide guidance on the effects of including specific clauses, such as lump sum payments or property transfers.
Every financial situation is unique, and your solicitor will tailor the agreement to your needs, ensuring both fairness and legal compliance.
For personalised guidance, chat with us on live chat or request a free callback to discuss your questions at a time that works for you.
Clean Break Financial Order Service for £399
You don’t need to spend thousands of pounds hiring local solicitors if you have agreed to obtain a clean break order following your divorce. We provide an affordable fixed-fee service to secure your finances without breaking the bank on solicitors’ fees!