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What is a clean break order?
A clean break is a type of financial settlement that dismisses any future claims parties may make against the other.
It is a court order that legally cuts financial ties between you and your former partner.
The effect of a clean break order is to:
- terminate the financial obligations of each party towards the other in life and or death, and
- bring the financial proceedings between the parties to a final conclusion.
If you want the certainty of knowing that neither party can make any further claim against the other in life or on death, you need to consider entering a clean break consent order.
Myerson's Family law team explore clean break settlements, spousal maintenance, and financial consent orders.
What is a financial consent order?
If you are thinking about applying for a divorce or dissolution of a civil partnership, it is important that you also think about financial matters.
Obtaining a final order or decree absolute in respect of a divorce only serves to officially end the marriage or civil partnership and does not prevent either party from making a claim for financial relief.
A financial consent order is a formal court document that sets out the agreement reached between you and your spouse or civil partner.
It explains how you are going to divide up assets, including pensions, property, savings, and investments.
Although you and your spouse or civil partner may agree to the principle of a clean break, it is the order of the court to dismiss those claims that achieve the finality of a clean break order.
It is possible to submit a financial consent order to the court for approval after you have received your Conditional Order or Decree Nisi.
The consent order will only take effect after the Final Order or Decree Absolute has been pronounced.
We would usually advise delaying applying for your final order or decree absolute until you have resolved financial matters.
Is the court under a duty to make a clean break?
The court is under a duty to consider whether it will be appropriate to exercise its powers so that the financial obligations of parties towards each other can be terminated.
If the court considers that financial independence is viable, a clean break order will be made.
This means that there will be no provision for spousal maintenance payments.
In cases where an immediate clean break is not achievable or is unfair, the court can consider if there should be an ongoing payment from one party to another for periodical payments.
The court has a duty to consider whether it would be appropriate to exercise its powers so that the financial obligations of the parties towards each other can be terminated.
Clean break and spousal maintenance
When considering spousal maintenance and a clean break, the court will consider:
- Whether it is appropriate to terminate the financial obligations of the parties as soon as after Final Order or Decree Absolute
- If a spousal periodical payment order is made, whether it should be for the joint lives of the parties without a clean break or for a term period with a deferred clean break
An immediate clean break may be suitable in some circumstances as there may be no basis for a spousal periodical payment order, e.g., both parties may be of similar age and earn broadly similar incomes.
A clean break order may not be suitable in a marriage or civil partnership where there is insufficient capital to meet the needs of a spouse or civil partner or where one party is unable to work.