The Advantages and Disadvantages of a Clean Break Order - Insights from Family Lawyer, Lucy Batstone

What is a Clean Break Order and Why Is It Important?

A clean break order is a legal document that finalises financial arrangements between divorcing couples. Once approved by the court, it ensures that neither of you can make financial claims against the other in the future.

This type of order gives you financial security and finality, which can be vital when you want to move on with your life.

Without a clean break order, even years after your divorce, your ex could come back and make a claim against your assets, including property, pensions, or inheritance.

For most people, the main benefit is the peace of mind it brings—knowing that all financial ties are legally severed.

What Are The Advantages of a Clean Break?

A clean break offers divorcing couples the opportunity to sever financial ties completely, allowing both parties to move forward independently.

Couples with modest assets to divide often find clean break orders appealing because they offer closure and prevent future disputes and financial claims.

Other key advantages include:

• Financial security: Once the agreement is in place, neither party can make further financial claims against the other. This provides certainty and peace of mind.
• Finality: All financial matters are settled, enabling both individuals to focus on rebuilding their futures without lingering financial connections.
• Emotional closure: Ending financial ties can help both parties move on, reducing the emotional burden of the divorce process.
• Speeds up the divorce process: When financial arrangements are agreed upon early, it can streamline the overall process, avoiding lengthy disputes.
• Saves money: By resolving finances promptly, couples can avoid the expense of prolonged negotiations or future court battles.

What Are the Potential Downsides of a Clean Break Order?

Of course, a clean break isn’t always the right solution for you. For longer marriages where one spouse has relied financially on the other, it might not work.

For example, if one person stayed home to look after the children while the other built their career, a clean break might leave the stay-at-home spouse struggling.

It can also feel a bit rigid. Life is unpredictable—jobs are lost, people get sick, and circumstances change. If you agree to a lump sum now but find yourself in financial trouble later, there’s no way to go back and ask for more.

And let’s not forget about children. While a clean break doesn’t cover child maintenance (that’s handled separately), it might not consider additional support for things like school fees or childcare costs.

So, if children are a big factor, you’ll need to think carefully about whether a clean break is right for your family.

While a clean break order can be beneficial, there are several potential disadvantages to consider:

• Unexpected changes: Life circumstances can change (e.g., redundancy or illness), making a fixed agreement less practical.
• Risk of Overlooking Long-Term Needs: Financial agreements may prioritise immediate resolution, leaving one party unprepared for future needs such as retirement or healthcare costs.
• Emotional Pressure to Finalise Quickly: The desire to resolve matters quickly can lead to rushed decisions, with one party potentially accepting less than they’re entitled to.
• Neglect of Non-Financial Contributions: Contributions such as childcare or homemaking may not be fully valued, leaving the caregiving spouse with less financial security.
• Overcompensation by Higher-Earning Parties: To achieve closure, the wealthier spouse may agree to a disproportionately large settlement, risking financial strain or regret.
• Impact on Shared Debt Responsibilities: Asset divisions may overlook shared liabilities, leaving one party burdened with a greater share of joint debts.
• Tax Challenges: Poorly planned settlements may result in unexpected tax liabilities, such as capital gains tax on property transfers or investment gains.

How Do I Know If a Clean Break Order is Right for Me?

Deciding whether to go for a clean break is not just about legalities—it’s about what feels fair and works for your situation.

I often hear clients ask questions like, “Will I regret agreeing to a clean break if things change in the future?” or “Is it better to settle everything now or keep things open?”

Here are a few practical insights to help guide your decision, drawn from the experiences of people who’ve faced similar dilemmas:

1. Consider Future Needs and Flexibility

One common theme is that life can throw curveballs—unexpected changes in finances or health can happen. While a clean break provides finality, it also locks in the terms.

For example, one person on the forum shared that they agreed to a clean break and later struggled financially after losing their job. If your circumstances are uncertain, it may be worth considering an arrangement that allows for some flexibility.

2. Think About Fairness, Not Just Finality

A clean break can feel like the quickest way to move on, but it’s important to ensure that the agreement reflects what’s fair for both parties.

Many people regret rushing into an agreement that seemed fine at the moment but left them financially vulnerable later.

Clients often share how they felt pressured to agree to a lump sum payment but realised later that it didn’t cover their long-term needs.

3. Protecting Your Financial Independence

For those planning to remarry or start fresh, a clean break can offer security and peace of mind.

However, it’s important to weigh this against your current and future financial needs.

Some couples appreciate the freedom a clean break gives them to rebuild their life but it’s important to seek advice on pension sharing to secure your retirement if necessary.

4. Seek Advice and Take Your Time

It’s important to take the time to understand the full implications of a clean break before signing.

Consulting with a family law solicitor or mediator to explore all options can prevent costly mistakes or regrets later.

Clients often tell me, “I wish I’d taken more time to understand what I was giving up when I agreed to walk away with a lump sum.”

The key takeaway is that there’s no one-size-fits-all answer.

A clean break can be a fantastic option for those seeking finality and financial independence, but it’s crucial to think through the long-term impact on your life.

Asking yourself questions like, “What if my financial situation changes?” or “Will this support my future goals?” can help you make the best decision for your unique circumstances.

Does a Clean Break Order Affect Remarriage or Child Maintenance?

These are two of the most common questions I hear about clean breaks:

• Can I remarry without a clean break order? Yes, but it’s risky. Without a clean break, your ex could make a financial claim against you—even after you’ve remarried. A clean break provides the legal protection you need.
• Does a clean break order affect child maintenance? No. Child maintenance is a separate obligation and isn’t covered by a clean break order. You’ll still need to make arrangements for child support, as required by law.

Do I Need a Clean Break Order If I Remarry? – Read this article for more details on remarriage.

Do Both Parties Need to Agree to a Clean Break Order?

Yes, both parties must agree on the terms of the clean break for it to be approved by the court.

If one of you disagrees, mediation might help resolve the issue. Mediation involves a neutral third party helping you reach an agreement without the need for a court battle.

If mediation doesn’t work, the court may decide on financial arrangements for you, but this can be time-consuming and costly.

Making the Right Choice for Your Financial Future

Deciding whether to pursue a clean break is a significant step in your divorce process.

It offers the promise of finality and financial independence, but it’s not always the best solution for everyone. Understanding the advantages and disadvantages, as well as your unique circumstances, is crucial to making an informed decision.

If you’re unsure about the best path forward, here are some steps you can take:

1. Evaluate Your Needs: Think about your current and future financial needs, including considerations like retirement, child support, and potential changes in your circumstances.
2. Seek Professional Advice: A solicitor can provide expert guidance tailored to your situation, ensuring that your financial settlement is fair and secure.
3. Take Your Time: Rushing to finalise financial agreements can lead to costly mistakes. Be thorough and consider mediation or financial advice if needed.

At the end of the day, your financial settlement should give you peace of mind and set you up for a stable and independent future.

If you’re considering a clean break, or simply want to explore your options, consulting with a family law expert can help you navigate this decision with confidence.

Our team of family law specialists is here to help. Whether you need advice, a professionally drafted financial order, or simply someone to talk through your options with, we’re just a call away.