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.

Spousal maintenance - clean break implications

A clean break settlement ends the financial ties between former spouses, including future claims for spousal maintenance. This means neither party can seek ongoing financial support from the other after the settlement. While this offers certainty and finality, it may not be suitable where one party relies on ongoing income from the other.

Deferred clean break

A deferred clean break allows for spousal maintenance to be paid for a limited time, with a clean break taking effect later. This is often used when one spouse needs short-term financial support, such as time to retrain or find employment, but both parties agree to cut financial ties in the future.

What happens if financial circumstances change

A clean break means you cannot revisit the financial agreement later. If one party's financial situation unexpectedly worsens—due to illness, job loss, or other life changes—they cannot return to court to seek more money. For this reason, a clean break may not be advisable if future financial stability is uncertain.

Clean break and new relationships

If you are entering a new relationship or planning to remarry, a clean break can be an attractive option. It ensures your ex-partner cannot make future claims on your assets, income, or property, providing financial clarity and protecting your future with a new partner.

Implementing a clean break

A consent order, arrived at through negotiations between the parties, can be used to achieve a clean break. For the court to grant the order both parties will still need to have provided complete information about their assets, income, and liabilities to each other and as stated above, the court will be very unlikely to make a clean break order if there are non-adult children.

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

How we can help

• Drafting and negotiating consent orders tailored to achieve a clean financial break

• Advising on fair division of assets to support a clean break outcome

• Ensuring court approval of the order for legal enforceability

• Protecting clients from future financial claims by ex-spouses

• Providing clear, practical guidance throughout the divorce process