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
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