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Financial Settlement in Divorce: Clean Break Orders Explained 2026

Many people assume that getting a final divorce order (formerly called a decree absolute) cuts all financial ties with their ex-spouse. It does not. The divorce dissolves the marriage but leaves financial claims wide open — potentially for the rest of your life. Without a court-approved financial settlement, your ex-spouse could make a claim against your assets, pension, or even an inheritance you receive years later. A clean break consent order is the legal document that prevents this. Here is what you need to know.

Why the Divorce Alone Is Not Enough

Under the Matrimonial Causes Act 1973, marriage creates mutual financial obligations. Divorce ends the marital status but does not automatically extinguish those financial obligations. Your ex-spouse retains the right to make claims for:

• Property: A share of the family home or other properties, even if only one name is on the title.
• Pensions: A share of your pension pot — sometimes one of the most valuable assets in a marriage.
• Maintenance: Ongoing monthly payments (periodical payments) for the rest of their life or until they remarry.
• Lump sums: A one-off cash payment from your savings, investments, or other capital.
• Inheritance: In some cases, a claim on assets you inherit after the divorce.

The only way to close the door on these claims forever is to obtain a court order — either a consent order agreed between you both, or an order imposed by the court after contested proceedings.

What Is a Clean Break Order?

A clean break order is a type of consent order that severs all future financial claims. Once the order is sealed by the court, neither party can make any financial claim against the other — period. It means:

• No future claims on property
• No future claims on pensions (unless a pension sharing order was specifically made)
• No spousal maintenance, now or in the future
• No claims on each other's estates when one dies

A clean break is not possible in every case. If one spouse cannot support themselves without ongoing financial help from the other (for example, a long career break to raise children resulting in limited earning capacity), the court may order ongoing spousal maintenance rather than a clean break. However, the court's modern approach strongly favours a clean break wherever possible.

How the Court Divides Assets: The Section 25 Factors

When deciding whether to approve a consent order (or when imposing its own order), the court must consider the factors set out in section 25 of the Matrimonial Causes Act 1973:

• Welfare of children: This is the court's first consideration. Where children will live and their needs come before everything else.
• Income and earning capacity: What each party earns now and could reasonably earn in the future.
• Financial needs and obligations: What each party needs to live on, including housing costs.
• Standard of living: The lifestyle enjoyed during the marriage.
• Age and duration of marriage: Longer marriages tend towards equal sharing. Short childless marriages may involve simply returning each party to their pre-marriage position.
• Disability or health issues: Any physical or mental condition affecting earning capacity or needs.
• Contributions: Both financial and non-financial (such as raising children or supporting a spouse's career).
• Conduct: Only if it would be "inequitable to disregard" — very serious misconduct such as hiding assets, not ordinary bad behaviour.
• Loss of benefits: For example, the loss of pension rights on divorce.

The starting point in many cases is 50:50, but "needs" — especially housing needs and the needs of children — often drive the outcome away from strict equality.

Step-by-Step: How to Get a Clean Break Consent Order

1. Agree the financial settlement. You and your ex-spouse agree how to divide assets, pensions, and whether any spousal maintenance is needed. This can be done through direct negotiation, mediation, collaborative law, or solicitor-led negotiations.
2. Complete the statement of information (Form D81). This form sets out both parties' financial positions — income, assets, debts, pensions, and proposed division. Both parties must complete it honestly. Deliberately hiding assets can lead to the order being set aside.
3. Draft the consent order. The order itself is drafted, usually by a solicitor, setting out exactly who gets what and including a clean break clause (if applicable).
4. Submit to the court. Send the draft consent order, Form D81, and the court fee of £53 (or £0 if you qualify for fee remission) to the court. A judge reviews the documents to ensure the agreement is fair.
5. Judge approval. The judge can approve the order, ask for more information, or reject it. Judges are not rubber stamps — they will refuse to approve an order that appears grossly unfair to one party, particularly if children are involved.
6. Sealing of the order. Once approved, the court seals the order. At this point, it becomes legally binding. You should keep the sealed copy with your important documents — you may need it when remarrying, selling property, or dealing with pension providers.

What If We Cannot Agree?

If you cannot reach agreement, you can apply to the court for a financial remedy order. The process involves:

• Filing Form A (Notice of an application for a financial order) — court fee £275
• Mutual financial disclosure (Form E) — both parties must provide full disclosure of their finances
• First Appointment (FDA) — the first court hearing to identify issues and set directions
• Financial Dispute Resolution (FDR) — a without-prejudice hearing where a judge gives an indication of likely outcome to encourage settlement
• Final Hearing — if settlement is not reached, a judge makes a binding decision

Contested financial proceedings are expensive — legal costs can run into tens of thousands of pounds. The court expects both parties to have attempted mediation first (with a MIAM — Mediation Information and Assessment Meeting — certificate required before issuing proceedings, subject to exemptions such as domestic abuse).

Pensions and the Clean Break

Pensions are often the second-largest asset after the family home and must be addressed in the financial settlement. There are three main ways to deal with pensions:

• Pension sharing order: A percentage of one spouse's pension is transferred into the other spouse's name. This achieves a clean break on pensions.
• Pension offsetting: One spouse keeps their pension and the other receives a larger share of other assets (for example, the family home) to compensate. This can also achieve a clean break.
• Pension attachment (earmarking): A portion of the pension income or lump sum is paid to the other spouse when the pension holder retires. This does not achieve a clean break and is rarely used now.

Jurisdiction: England and Wales

Financial remedy proceedings on divorce are governed by the Matrimonial Causes Act 1973 and apply in England and Wales. Scotland has different rules under the Family Law (Scotland) Act 1985 — the key difference is that in Scotland, the value of assets acquired before the marriage is generally excluded from the matrimonial pot, whereas in England and Wales all assets are potentially in play. Northern Ireland has similar rules to England and Wales. If you were married under another country's legal system, different rules may apply to the division of assets — seek specialist advice.

FAQ

Can I get a clean break if my ex-spouse cannot support themselves?

The court may refuse a clean break if one party has no realistic prospect of supporting themselves. However, the court can structure the settlement to minimise ongoing ties — for example, by awarding a larger share of capital now in exchange for no ongoing maintenance (a "capitalised maintenance" approach). The court will consider all the circumstances.

What happens to debts in a clean break?

Debts should also be addressed in the consent order. The order can specify who is responsible for which debts. Creditors are not bound by the order (they can still pursue either party for joint debts), but the order gives you a contractual right to claim back from your ex-spouse if they fail to pay a debt they agreed to pay.

Will the court always approve our agreed consent order?

Not automatically. The judge reviews the D81 and the order for fairness. If the agreement appears substantially unfair — for example, one party walking away with almost nothing while the other keeps everything — the judge can refuse to approve it and may ask questions or request modifications. This is particularly common when one party is unrepresented.

Authoritative Sources

• Matrimonial Causes Act 1973, Section 25 — the factors the court considers
• GOV.UK — Money and property when a relationship ends
• GOV.UK — Form D81 (Statement of Information for a Consent Order)
• Family Mediation Council — find a mediator and learn about MIAMs
• Citizens Advice — Ending a relationship