Many people assume that once their divorce is final, all financial ties between them and their former spouse automatically come to an end.

Unfortunately, that is not necessarily the case.

A final divorce order ends the marriage, but it does not automatically dismiss possible financial claims. Unless your financial arrangements have been made legally binding through a court-approved financial order, one or both parties may still be able to make a claim in the future.

A clean break order after divorce can provide valuable certainty, allowing both people to move forward knowing that appropriate future financial claims have been brought to an end.

Divorce and financial arrangements are separate

The divorce process legally ends your marriage. Financial matters are dealt with separately.

You may have agreed between yourselves what will happen to the family home, savings, debts, pensions or other assets. However, an informal agreement—even one recorded in writing, by email or in messages—does not normally provide the same protection as a court-approved financial order.

This can come as an unwelcome surprise, particularly where a couple divorced amicably and assumed that their verbal or written agreement had settled everything.

Without an appropriate court order, financial claims may remain open after the divorce has been completed.

What is a financial consent order?

A financial consent order records an agreement that has already been reached between divorcing spouses.

It can deal with matters such as:

• The family home and other property
• Savings and investments
• Debts
• Lump-sum payments
• Pensions
• Spousal maintenance
• The dismissal of future financial claims

The proposed order is submitted to the Family Court together with information about each party’s financial circumstances. A judge considers the proposed arrangements and decides whether they appear fair.

There is not usually a court hearing for an agreed application. However, the judge may ask questions, request amendments or decline to approve the order if its terms do not appear fair.

Once approved, the order makes the agreement legally binding.

What is a clean break order?

A clean break order is a type of financial order that dismisses specified future financial claims between former spouses.

Its purpose is to provide financial independence and finality. Subject to the terms of the order, neither person should later be able to return and make further claims against the other’s income, property, savings, inheritance or pension.

A clean break can sometimes take effect immediately. In other cases, it may be deferred—for example, until a property has been sold or a specified payment has been made.

The exact wording is important because every family’s circumstances are different. A clean break may be suitable where both people are financially independent, but it is not automatically appropriate in every divorce.

Why might a private agreement not be enough?

An amicable agreement is a very good starting point. Reaching an agreement without contested court proceedings can save considerable time, stress and expense.

The problem is not the agreement itself. The problem is leaving it without the protection of a court order.

Circumstances can change. One person may later receive an inheritance, build a successful business, acquire property or substantially increase their pension. Alternatively, memories of what was agreed may differ or relations between the former couple may deteriorate.

A private agreement may provide evidence of the parties’ intentions, but it does not necessarily prevent a future financial application. A properly approved clean break order offers much greater certainty.

When should you apply?

A proposed consent order can be sent to the court once the conditional order has been granted in the divorce.

It is generally sensible to resolve the financial arrangements before applying for the final divorce order. Applying afterwards is possible, but there can be financial consequences—particularly where pensions are involved.

If your divorce is already final and you do not have a financial order, it may still be possible to apply for one. You should obtain appropriate advice before assuming that it is too late.

What does an agreed application involve?

For a straightforward agreed clean break application, the usual stages include:

1. Reaching an agreementBoth parties need to agree how their finances and assets will be dealt with.
2. Providing financial informationThe court needs sufficient information about each party’s financial position to assess whether the proposed arrangements appear fair. This is normally provided through a Statement of Information, known as Form D81.
3. Preparing the proposed orderThe agreement must be translated into an appropriately drafted financial order. The wording needs to reflect what has been agreed and identify which future claims are being dismissed.
4. Signing the documentsBoth parties confirm their agreement to the proposed terms and the financial information being supplied to the court.
5. Submitting the applicationThe documents are submitted to the court with the applicable court fee, which is currently £62 for an application for a financial order by consent.
6. Judicial considerationA judge reviews the paperwork. If satisfied that the arrangements are fair, the judge can approve the order without requiring the parties to attend a hearing.

Is a clean break appropriate for everyone?

No. A clean break is helpful in many cases, but it is not always suitable.

Continuing spousal maintenance may be required where one person cannot yet meet their reasonable needs independently. There may also be property, pension or business arrangements that need to be completed before a full clean break can take effect.

Child maintenance is treated differently from financial claims between former spouses. A clean break between adults does not remove parental responsibilities or prevent appropriate arrangements being made for children.

Independent advice is particularly important where:

• There are valuable or complicated pensions
• A business is involved
• Assets are held overseas
• One person may be hiding assets or income
• The proposed division is substantially unequal
• There has been domestic abuse, pressure or controlling behaviour
• One person does not understand the agreement
• The parties cannot agree
• Court proceedings have already become contested

A person should not be pressured into accepting a clean break without understanding its consequences. Once an order has been approved, changing it can be difficult.

Can the same adviser act for both parties?

A clean break order is based on an agreement, but each former spouse has their own legal and financial interests.

One professional should not advise both parties where their interests may conflict. The other party should be given the opportunity to obtain independent legal advice before signing the proposed documents.

This helps both people understand what the order means and reduces the risk of misunderstandings later.

Fixed-fee help from Do It Legally

Do It Legally provides expert, personal assistance with straightforward agreed clean break applications in Brighton & Hove and remotely.

Our fixed fee is £200, with the £62 court fee payable separately.

The service is intended for straightforward cases where both parties have already reached an agreement and contested court proceedings are not required. We explain the process clearly, help with the agreed paperwork and guide you through submitting the application.

If the matter involves pensions, businesses, significant assets, disputed arrangements or another complication requiring specialist regulated advice, we will explain this and recommend that independent advice is obtained.

Give your financial agreement legal certainty

Divorce is an important new beginning. Making sure your financial arrangements have been properly concluded can help you move forward with confidence.

If you have reached an agreement with your former spouse—or if your divorce is already complete but you do not have a financial order—contact Do It Legally to discuss whether our fixed-fee clean break service may be suitable.

Call 01273 011245 or contact us through our website.

Meet us in Brighton & Hove or speak to us remotely.

This article provides general information about the law in England and Wales and should not be treated as advice about your individual circumstances. Do It Legally is an independent legal-services business and is not an SRA-authorised solicitors’ firm. We do not conduct contested litigation or represent clients in court.