Clean break divorce - lawyer guide

Summary

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. You may be surprised to learn that without a clean break financial order, your former spouse could potentially pursue a future financial claim against you, putting inheritance or an unexpected windfall at risk. A clean break can give each party clarity, financial independence and the ability to plan for the future. However, it can also carry risks, particularly when some assets are difficult to value, payments are deferred, or circumstances change unexpectedly. Importantly, a clean break cannot apply to children. Child maintenance is a legal responsibility which cannot be removed by agreement or otherwise. Parents remain responsible for meeting children’s needs regardless of any clean break between spouses * By agreement between the parties, formalised in a consent order, or * By the court, if the parties cannot agree. The court must consider whether financial independence can be achieved “as soon after the.

Key information

• •By agreement between the parties, formalised in a consent order, or
• •By the court, if the parties cannot agree.
• •Immediate clean break: All financial claims are severed at the date of the order including claims against income and capital, pension assets, inheritances or windfalls, maintenance and against the other's estate on death
• •Deferred clean break: Some obligations continue until agreed events occur (e.g., perhaps appropriate if there are young children, or if the former spouse requires time to retrain in the job market, ).
• •There are no dependent children;
• •Both parties are financially self-sufficient.
• •Family home: Is it appropriate for the home to be sold and net equity distributed, should there be a buy out scenario with one party retaining the property, or does the property need to be maintained for a period of time, for example to provide a period of stability for children of the family whilst they conclude education.
• •Spousal Maintenance: Can be paid for a fixed term, on a nominal basis or joint lives.
• •Pensions and other assets: Pensions provide an income source into retirement. It is important pensions are not forgotten/ignored as part of the negotiation process. Non Court Dispute Resolution: must always be considered before a Court application is made
• •Property: timing, valuation, triggers, contingencies, interaction with other assets.
• •Maintenance: amount, term, step-downs, termination triggers, bar clauses.
• •Pensions: sharing vs attachment, CETV adjustments, timing.

Practical guidance

• •Source: [Clean break divorce - lawyer guide](https://www.taylor-rose.co.uk/posts/clean-break)

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