When a marriage ends, most people want to move on and forward with a fresh start. But while a divorce legally ends the marriage, it doesn't necessarily bring financial matters to a close.
Even if you've agreed how to divide your property, savings and other assets, your former spouse may still be able to make financial claims against you in the future.
This is where a Clean Break Order can provide valuable protection.
What is a Clean Break Order?
A Clean Break Order is a legally binding court order that ends financial claims between former spouses following divorce.
Its purpose is to provide financial independence, preventing either party from making further financial claims against the other in the future, subject to the terms of the order and limited legal exceptions.
A clean break can form part of a wider financial settlement covering property, savings, investments and pensions. Alternatively, where there are no assets to divide and neither party requires financial support, it may be possible to obtain a straightforward order dismissing future claims.
The aim is simple: to allow both parties to move on without the uncertainty of future financial disputes.
Does divorce automatically end financial claims?
No. This is one of the most common misconceptions about divorce.
Obtaining a Final Order legally ends your marriage, but it does not automatically dismiss financial claims between you and your former spouse.
Even if you've been divorced for several years, your former spouse may still be able to pursue a financial claim if those rights have not been properly dealt with.
For example, you might divorce when neither of you has significant assets. Several years later, you inherit money, build a successful business or accumulate substantial savings.
Without a financial order dismissing future claims, there may still be a risk of your former spouse seeking financial provision.
An informal agreement, however amicable, does not provide the same protection as a court-approved order.
Do I need a Clean Break Order if we have no assets?
Potentially, yes.
You may feel that a Clean Break Order is unnecessary if you and your former spouse have no property, savings or other significant assets.
However, your financial circumstances could change considerably over time.
You might receive an inheritance, increase your earnings, build up pension savings or acquire property.
A Clean Break Order can help protect against future financial claims, even where there is little or nothing to divide at the time of divorce.
This is why obtaining legal advice about a financial settlement can be worthwhile, regardless of the value of your current assets.
What if we have already agreed everything?
Reaching an amicable financial agreement is a positive step, but an agreement between yourselves is not automatically legally binding.
If you agree how your finances should be divided, a solicitor can prepare a Consent Order setting out the agreed terms and submit it to the court for approval.
The order can include provisions dealing with property, savings, pensions and other assets, alongside clauses dismissing future financial claims.
Once approved by the court and effective, it provides legal certainty about the arrangements.
This can help avoid misunderstandings or disputes years after the divorce has been finalised.
Can you get a Clean Break Order if you have children?
Yes, although there are important distinctions.
A Clean Break Order can end financial claims between former spouses, but it does not automatically remove financial responsibilities towards their children.
Child maintenance is generally dealt with separately, often through the Child Maintenance Service, and certain financial claims relating to children may remain possible.
Where children are involved, the court will also consider their needs when deciding whether a proposed financial settlement is fair.
A clean break between spouses may therefore be achievable while financial responsibilities towards children continue.
What if one spouse needs financial support?
An immediate clean break is not appropriate in every divorce.
For example, one spouse may have significantly lower earnings, limited pension provision or ongoing financial needs following a long marriage.
In these circumstances, spousal maintenance may be necessary, at least for a period of time.
It may be possible to agree a deferred clean break, where maintenance is paid for a specified period before financial claims are brought to an end.
Alternatively, a lump sum or different division of assets may help achieve financial independence without ongoing maintenance.
The appropriate arrangement will depend on the couple's circumstances, including their income, assets, earning capacity and future needs.
Can a clean break order be challenged?
A properly made Clean Break Order is intended to provide finality, but there are limited circumstances in which a financial order may be challenged or set aside.
These can include fraud, significant non-disclosure of financial information or certain serious mistakes.
A change in someone's financial circumstances does not, by itself, mean that a completed clean break can simply be reopened.
This makes it particularly important that both parties provide accurate financial information and understand the implications before agreeing to an order.
When should you apply for a Clean Break Order?
Ideally, financial matters should be addressed before the divorce is finalised.
A financial order can usually be approved once the Conditional Order has been made, although it will generally only take effect when the Final Order is granted.
Leaving financial matters unresolved until after the Final Order can create complications, particularly where pensions are involved.
It is still possible to seek a financial order after divorce in many circumstances, but obtaining advice early can help avoid unnecessary risks.
Protect your financial future
If you're getting divorced, or have already divorced without a financial settlement, it is important to understand whether your financial ties have been properly brought to an end.
A Clean Break Order could provide the certainty and peace of mind you need to move forward.
Contact Coles Miller's Family Law team today to discuss your circumstances and find out how we can help you achieve a fair and legally binding financial settlement.
