What is a Clean Break Order?

What is a “Clean Break Order” and do I need one?

A clean break financial order is a final financial remedy order made on divorce, dissolution, or judicial separation that terminates and dismisses each party’s financial claims against the other, so far as the court can do so. Its effect is to sever financial ties between former spouses and civil partners, preventing future claims for example for spousal maintenance / periodical payments order, payment of a lump sum of money from one party to the other, a pension sharing order and orders in relation to property. 

A clean break can be ordered after a contested hearing or, more commonly, by consent within a consent order approved by the court.  A financial order which includes the clean break provisions can be made by the Court at any time after the Conditional Order in the divorce / dissolution proceedings has been made.

The law relating to finances on divorce, dissolution, or judicial separation is contained within the Matrimonial Causes Act 1973, and the law requires the court, when exercising its financial remedy powers, to consider whether and when it is just and reasonable to terminate the parties’ mutual financial obligations (the “clean break” duty). If making any periodical payments order, the court must consider limiting its term to enable transition to independence without undue hardship.  Whilst the Court will always look at whether a clean break is appropriate, there is no presumption of one rather the court must apply the section 25 factors (needs, resources, standard of living, ages, duration, contributions, any disability, loss of benefits, conduct in the limited statutory sense), with first consideration to any minor child’s welfare.

Even after the divorce or dissolution has been finalised, the parties’ financial claims against each other remain open and ongoing except with a Clean Break financial order, or in some circumstances, remarriage or another Civil partnership.  Clean break Orders can be either effective immediately or deferred to a later defined date, and will also cover a clean break in the event of death.

Fieldings Porter can advise further with regard to the financial aspects of separation, divorce and dissolution of Civil Partnerships and draft and finalise a financial Order which include clean break provisions. For advice, please contact Donna Leigh at Donna.Leigh@fieldingsporter.co.uk who will be happy to assist.