When a marriage or civil partnership ends, the process of divorce can be emotionally draining and financially complex.
You may feel overwhelmed with the changes you are facing as you go through a divorce, and quite often going from a household with two incomes to one can be a struggle.
“If you do not own a house or have other assets, it can be tempting to cut costs and ignore seeking advice from a solicitor in relation to a financial agreement. That could be a costly mistake,” says David Anstee, our Head of Family Law.
“A divorce does not stop all financial obligations between spouses. You may be on amicable terms now but relations can sour over time, especially if one of you enters a new relationship or comes into new found wealth.
“You can prevent an unexpected claim at a later date by obtaining a clean break order. It is a relatively straightforward process and normally does not involve you having to go to court.”
Understanding a clean break divorce
A clean break divorce is a legal agreement between divorcing spouses that aims to sever all financial ties upon the conclusion of the divorce proceedings. This means neither party will have any ongoing financial obligations to the other, such as spousal maintenance or property division.
Once the clean break divorce agreement is finalised, there are no uncertainties about future financial obligations. It allows both parties to move forward independently, without the burden of ongoing financial ties.
A clean break divorce can help to minimise ongoing conflict and animosity between the divorcing parties. By severing financial ties, it can reduce the potential for future disputes and provide a sense of closure.
By ensuring each party retains their share of assets, a clean break agreement can provide financial security for both individuals, protecting assets from future claims or liabilities.
A clean break divorce can often be resolved more quickly than a divorce involving complex financial arrangements, saving time and legal fees.
How to achieve a clean break divorce
To achieve a clean break divorce, both parties must agree on the following:
- A fair and equitable division of assets, including property, savings, and investments
- Agreement on who will be responsible for existing debts
- A decision to waive any future claims for spousal maintenance
- If applicable, a clear arrangement for child support payments.
Remember, while a clean break divorce can offer significant advantages, it is essential to consider your individual circumstances and seek professional legal advice to ensure a positive outcome.
Additional considerations
Mediation: Mediation can be a valuable tool in achieving a clean break divorce. A neutral mediator can help both parties communicate effectively and reach a mutually agreeable settlement.
Collaborative divorce: This approach involves both parties and their lawyers working together to find amicable solutions and reach a settlement without resorting to court proceedings.
Financial disclosure: The court must be satisfied that each person entered the agreement in full knowledge of the other’s financial position. This means both parties to the marriage must provide a full and honest disclosure of their assets and liabilities.
Tax implications: Consider the tax implications of a clean break divorce, as it may affect your income tax and capital gains tax.
By carefully considering these factors and seeking legal advice, you can increase your chances of achieving a successful and amicable clean break divorce.
This article is for general information only and does not constitute legal or professional advice. Please note the law may have changed since this article was published. Picture by Becca Tapert