What is a clean break order?

When you get married, you become financially tied to your partner. If you divorce your partner, it might surprise you to learn that this doesn’t automatically end your financial relationship with them.

A clean break order usually refers to a type of order that the court can make following a divorce, to sever any financial ties between you both.

In this blog, we’ll explain why you might want to consider a clean break divorce, and how to get a clean break order.

What is a financial separation on divorce?

A divorce legally ends your marriage and there are several stages that you must go through in order for your divorce to be finalised and legal. It’s the same process for dissolving civil partnerships, so all references to divorce below, apply equally to dissolutions. You can read about how to get divorced here.

If you have finances to divide, such as any money, property, savings, pensions etc. you can agree on these arrangements in your financial settlement.

As explained above, a divorce on its own doesn’t separate you financially. The divorce process is mostly separate from the process of making your financial settlement legally binding through the court. However, you must have started your divorce and have received your ‘conditional order’ (formerly called the ‘decree nisi’) to ask the court to make your financial arrangements legally binding.

Need help agreeing on how to divide your finances?

How do you make your financial arrangements legally-binding?

If you both agree, you can make your financial arrangements made legally binding through a consent order. This is sent to the Family Court to be reviewed by a Judge and is legally binding once approved and sealed. It’s called a consent order because you’ve both consented (agreed) to it.

Is a consent order the same as a clean break?

In most cases, yes. Normally, a consent order will include a clean break clause which severs all financial ties and ends future claims. However, a clean break clause isn’t always possible in a consent order, if for example, there’s ongoing spousal maintenance. Therefore, a consent order is not always the same as a ‘clean break order’ but most of the time it is.

What is included in a clean break (consent) order?

The consent order document outlines any declarations, undertakings, and orders and how your assets and debts are to be divided following your divorce. The document will usually include a final order dismissing any future claims against each other (this is the clean break clause).

These can be broken down into two main categories:

It’s important to note that formalising your financial arrangements or getting a clean break is optional and both require full financial disclosure of all assets and debts including future pension entitlements regardless of whether they are part of your final agreement.

Why do I need to disclose my finances and assets on divorce?

The court needs to make sure that it’s a fair agreement and for them to do this - they need to see what you both have, even if you don’t have any assets.

What is a full consent order?

A full consent order tells the court what ‘financial transactions’ will happen following your divorce—for example, the sale of your home, sharing your pension or spousal maintenance.

A full consent order is not necessarily a clean break order. It may include a deferred clean break, sometimes called a Mesher order. A deferred clean break is a clean break clause that activates only after a certain event takes place. This could be anything, from when your child finishes school or reaches a certain age to after the sale of a property.

What is a clean break order?

A clean break order is a type of consent order where there is only a clean break, rather than any transactions taking place. Each of you keeps what you have, and all financial ties, present and future are severed following the final order.

Legally speaking, the normal starting point is a 50:50 split of all assets, so if one of you is left with more than the other, you might need to explain why in the consent order.

Get help agreeing through our negotiation sessions.

Learn more about dividing assets fairly on the latest episode of The Divorce Podcast ‘Is 50/50 fair? Fairness, finances and divorce with Joshua Rozenberg and David Hodson’:

What are the benefits of a clean break order?

Even if you don’t have any assets or finances to divide, a clean break order will make sure that your ex can’t make claims against you in the future. Without a clean break order your ex could make a claim on any income, bonuses, or post-divorce assets such as future pensions, windfalls, or inheritances. This can include anything from large lottery wins to (in rare but possible) cases your business has taken off and your ex makes a claim.

Summary:

The key differences between a clean break order and a full consent order are;

• A full consent order outlines to the court how your assets and debts will or have been divided and records those transactions as already having occurred or to take place within a certain timeframe after your final order for divorce.
• A clean break consent order records that you will each keep what you own, there are no transactions to take place and there is no ability to make a claim against each other in the future.

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