A Financial Clean Break On Divorce
Many divorcing couples are not aware that a divorce itself without a court order regarding finances, does not prevent a party from making a financial claim against the other in the future such as against an inheritance or successful business for example. In this piece we explain why a court order regarding finances are essential.
Many divorcing couples are not aware that a divorce itself without a court order regarding finances, does not prevent a party from making a financial claim against the other in the future such as against an inheritance. This court order is referred to as a clean break consent order. A clean break may now always be right but the court’s are increasingly working towards this to allow people to ‘move on’ post divorce.
What is a Clean Break?
A Clean Break severs the financial ties between spouses and prevents them from making any further financial claims under the Matrimonial Causes Act. It is incorporated into a Order, often by consent, which is approved by the court. The Order also sets out how the matrimonial assets should be divided for example, in relation to the family home, savings and pensions.
How can I obtain a Clean Break?
Where both parties agree that there should be a Clean Break, a solicitor can draft the Consent Order and submit it to the court for the Judge’s approval. Both parties will need to sign the Consent Order although neither party will usually need to attend court.
What if my ex-spouse does not agree?
Where one party does not agree, it is open to the other party to initiate financial remedy proceedings. Financial disclosure will need to be exchanged and there may be multiple court hearings. This is the costlier option and therefore parties may wish to firstly consider attempting mediation whereby an agreement can be reached.
Case Law
Below are examples of cases where, in the absence of a Clean Break, financial claims have been made many years after a couple have already divorced:
- HAT v LAT [2023] – 25 years after the divorce was finalised, the court made an order for spousal maintenance to be paid.
- In 2015 Dale Vince built up a successful business. 20 years after his divorce, his ex-spouse sought a lump sum payment and he had to pay a settlement of £300,000.
- In 2010 Nigel Page won the lottery 10 years after his divorce. The court ordered that he pay 2 million to his ex-spouse.
How we can help
At Clark Willis, we can advise you on your options for achieving financial independence with a Clean Break Consent Order. We also provide a mediation services. If you require expert legal advice, support and assistance tailored to your specific needs, please get in touch with our experienced family team.