What is a 'clean break' financial settlement and why is it beneficial to the parties?

When you marry, your finances are intertwined with that of your spouse. When you separate or divorce, this does not end your financial relationship, nor does it end your legal obligation to meet your ex-partner’s financial needs. The only way to end this relationship and prevent any financial claims being made by either party in the future is to seek a financial agreement via a solicitor when you separate.

If you do not do so, then there is a likelihood that your ex-partner could seek a financial settlement to meet their income, capital, pension or housing needs in the future.  We would strongly recommend that you enter into either a Separation Agreement or Consent Order to record any financial agreement between you and your ex-partner to achieve a “clean break” if possible.  This will need to be prepared by a solicitor, and both parties should seek independent legal advice before signing the documents given that the terms will end all further financial claims in relation to the marriage. 

Even if you have few or no assets to divide, or you have similar financial positions, you should still take steps to achieve a clean break when you separate. Your circumstances may change in the future, for example you may receive an inheritance or win the lottery, and without a clean break in place, you run the risk that your ex-partner could come along and seek a share.  Similarly, your ex-partner may need to look to you to support them financially, for example if they are unable to work or have nowhere to live.  The Court would look at your circumstances at the time of any Court application, and this may be significantly different to that at the time of separation or divorce.

To put it simply, this offers reassurance that there will be no disputes over finances in the future. Our family team are highly experienced in negotiating settlements and we can advise you on what the Court would consider to be fair and reasonable.