What’s a financial clean break order?
A clean break is a court order settlement whereby a lump sum payment and/or property transfer is made with no on-going maintenance. A clean break ends the financial relationship between the two parties. Once the break occurs neither party can make a further claim against the other. Without a clean break order in place either party can comeback at a future date to make a claim against their former spouse. Any future inheritance or lottery win could therefore encourage your former spouse to request to re-negotiate the divorce settlement based on current circumstances.
There is no time limit for this. So it could happen many years after the decree absolute if either party’s circumstances change.
A clean break may not be achievable:
– A clean break is normally not appropriate where there are young children and there is a continued obligation on one party to pay spousal and/or child maintenance.
– If there are insufficient assets to provide both parties with adequate finances to each set up a new home, and be financially self-sufficient.
– If one party has significantly less earning capacity than the other, a clean break would require a transfer of a large proportion of the assets. This may not be practical.
An alternative is to have a joint lives order.
If you would like a recommendation to a solicitor please contact me on 01932 698150 or email mary@marywaring.co.uk
photo credit:flickr/nick wheeler
Read More
If you enjoyed this post, we recommend the following as additional reading.
How to protect your pension share on divorce
The process for agreeing a financial settlement on divorce can go on for many months. Financial information is made available at the beginning of the divorce process, but what happens when these values change? This is particularly relevant for any stock market investment, which will cover pensions, Isa, unit trust, investment trust or bonds. There…
What mortgage will you be offered following divorce?
Mothers who work part time or work in a low paid job to be able to fit their job around general child care, will often struggle after divorce to be eligible for any reasonable sized mortgage from a bank or building society. . Even if your partner has left the marital home and you have…
Are you a “Common Law Wife?”
It is a widely held belief among women that if they are cohabiting but not married that they will have the same rights as a spouse should they and their partner later separate. However, this is a myth. I’m going to say that again just to make sure you heard correctly: this is a myth.…