Do I Need a Clean Break?
Do I need a Clean Break in place following a Divorce?
It is a common misconception that the ‘Final Order’ of your Divorce, previously called ‘Decree Absolute’, will automatically grant you a ‘clean break’.
What is a ‘Clean Break’?
A clean break is a clause within a Court Order that ensures neither you nor your spouse will have any future claims on each other’s assets and income. While it may seem strange, if you do not have a clean break in place, your former spouse could return years later and make a claim on your assets and income, including any pensions, businesses and properties you own.
How do I obtain a ‘Clean Break’?
The only way to ensure an effective clean break is in place is to formally record this in a Court Order. If you and your spouse have reached an agreement on the distribution of the marital assets, you can simply record this agreement in a ‘Financial Consent Order’ which will need to be submitted to the Court for their approval together with a ‘Statement of Information’, which is a short document setting out each of your finances.
If you cannot agree on the distribution of the marital assets, then it may be necessary to issue Court proceedings and have a Clean Break granted by a Judge. If Court proceedings are necessary, then we will walk you through every step to ensure you understand the process entirely.
It is not possible to record a Clean Break in any other type of agreement, such as a ‘Separation Agreement’.
Is a ‘Clean Break’ always suitable?
In some circumstances, a clean break may not be suitable. This is usually the case where one spouse earns significantly more than the other and therefore ‘Spousal Maintenance’ may be appropriate. Where there is a spousal maintenance agreement in place, a clean break cannot be granted.
A clean break is therefore not mandatory and you may finalise your Divorce without one; however, it is very important to consider this carefully. While your spouse may not wish to make a claim on your finances at present, either one of you may have a change in financial circumstances that could put your assets and income at risk. A typical example of this is winning the lottery, which could encourage your former spouse to make a claim and receive some of your winnings; this may seem unrealistic, but it has certainly happened: Lottery winner pays £2m to ex-wife who dumped him | Metro News.
How MJP Law can help
At MJP Law, we understand what a difficult time a Divorce and all the arrangements that come with it can be. We can advise you on the best way forward and can negotiate an agreement with your spouse or their solicitor on your behalf and, only where necessary, issue Court proceedings.
If you would like to speak with any of our family law team, please call 01202 842929 or email family@mjplaw.co.uk who will gladly assist.
