Understanding the Difference Between a Consent Order and a Clean Break Consent Order

Consent Order vs a Clean Break Consent Order – Understanding the Difference

When going through a divorce or dissolving a civil partnership, addressing the financial aspects can be as complex as managing the emotional challenges. Many couples seek closure and certainty regarding their financial futures. One legal tool that helps achieve this is the Consent Order, but there is often confusion about how it differs from a Clean Break Consent Order. Although they sound similar, these two orders serve distinct purposes, and their benefits vary depending on individual circumstances.

What is a Consent Order?

A Consent Order is a legally binding agreement that sets out how a couple will divide their assets, finances, and responsibilities after a divorce. This document, which must be approved by a judge, can cover:

• Division of property: How the family home or other properties are divided.
• Maintenance payments: Regular payments, such as spousal or child maintenance.
• Pensions: Sharing or offsetting pension assets.
• Debts: How any joint or individual debts are to be handled.

A key feature of a Consent Order is that it formalises an agreement the couple has reached. It is often used when both parties have come to an amicable settlement but want legal certainty and protection. However, a Consent Order does not necessarily end all financial connections between ex-partners. For example, it can include ongoing spousal maintenance, meaning one person may continue to support the other financially for a specified period or even indefinitely.

What is a Clean Break Consent Order?

A Clean Break Consent Order is a specific type of Consent Order designed to cut financial ties between divorcing spouses or civil partners completely. The main goal is to ensure that neither party can make financial claims against the other in the future. Once a Clean Break Consent Order is in place, both individuals relinquish the right to seek further financial support or make any claims on future earnings, such as inheritance or other financial windfalls.

This type of order typically deals with the division of:

• Property
• Pensions
• Investments
• Savings

The Clean Break Consent Order differs from a standard Consent Order in that it ensures that no financial obligations continue after the divorce. For example, there would be no requirement for spousal maintenance, allowing each party to move forward independently.

Key Differences Between Consent Orders and Clean Break Consent Orders

Ongoing Financial Obligations

• A Consent Order may include ongoing financial support, such as spousal maintenance, maintaining some financial ties between the parties.
• A Clean Break Consent Order ensures that no future financial claims can be made, severing all financial links.

Flexibility

• A Consent Order provides flexibility if ongoing support is needed, for instance, due to childcare responsibilities or differences in earning potential.
• A Clean Break Consent Order offers finality and is more rigid, often preferred by couples who want to end all financial connections.

Risk of Future Claims

• Without a Clean Break, one party could potentially return to court in the future to seek additional financial support if their circumstances change.
• With a Clean Break, both parties give up any right to future claims, offering long-term financial certainty.

Advantages of a Consent Order

• Flexibility: If ongoing financial support is necessary, a Consent Order allows for spousal or child maintenance to be included, providing a mechanism to support financially dependent parties.
• Judge Approval: The fact that a judge must approve the order adds an extra layer of legal protection, ensuring that the agreement is fair and understood by both parties.
• Enforceability: If one party fails to meet the terms of the order, such as missing maintenance payments, the Consent Order can be enforced by the courts.

Advantages of a Clean Break Consent Order

• Finality and Certainty: A Clean Break Consent Order ensures that no future financial claims can be made, allowing both parties to move on independently.
• No Ongoing Financial Ties: This type of order ensures that no financial obligations, such as spousal maintenance, continue after the divorce, offering both emotional and financial closure.
• Peace of Mind: Knowing that future claims cannot be made can provide relief, particularly if one party expects future financial success or inheritance.

When Should You Consider a Consent Order?

A Consent Order is suitable if:

• Ongoing financial support is needed, for example, in cases where one party has been financially dependent or where there are young children.
• The couple has reached a financial agreement and wants it to be legally binding.
• There is a need for flexibility, as future changes in financial circumstances might require adjustments.

When Should You Consider a Clean Break Consent Order?

A Clean Break Consent Order is appropriate if:

• Both parties are financially independent, and there is no need for spousal maintenance.
• The couple wishes to sever all financial ties completely.
• There are no children or children’s financial needs have already been addressed separately.
• One or both individuals wish to protect future assets, such as inheritances or future earnings.

One notable example of the importance of a Clean Break is the Vince v Wyatt case (2015), where a husband became a multimillionaire years after the divorce, and his ex-wife was able to claim a financial settlement because they had not obtained a Clean Break Consent Order at the time of their divorce.

Summary

Both Consent Orders and Clean Break Consent Orders play a crucial role in managing the financial elements of divorce in England and Wales. The choice between them depends on the couple’s specific needs. While a Consent Order offers flexibility for ongoing financial support, a Clean Break Consent Order provides finality, allowing both individuals to move forward with their lives without future financial claims.

Understanding the differences and seeking guidance can help ensure that your financial future is secure. Whether you opt for flexibility or finality, these legal tools offer important support in working through your post-divorce finances.