Upon separation and divorce, each spouse is entitled to make claims against the other by virtue of their marriage in relation to the division of their assets, incomes, pensions, liabilities, and any other related issues.

These claims remain open, even after the finalisation of the divorce, and regardless of how much time it has been since the divorce or separation. The claims will only end upon the following events:

  • A Court Order dismissing these claims;
  • Death; or
  • Remarriage (except relating to claims regarding pensions).

It should be noted that even upon remarriage, the spouse that has not remarried will still be entitled to make financial claims against their former spouse who has remarried.

Parties should avoid the risk of a spouse making a financial claim in the future, when circumstances could be very different, for example one party may have received an inheritance. It is therefore extremely important to resolve finances as soon as possible following the breakdown of a marriage and ensure that any agreement reached is recorded in a Court Order, dismissing future claims (assuming that this is appropriate).

A common misconception is that a “clean break” means each party keeps their respective assets and income but this is not necessarily the case. A ‘clean break’ (or clean break Order) can be after assets, pensions, liabilities, or other financial arrangements have been divided, transferred, or settled, and then the parties’ future capital and income financial claims are dismissed meaning that no further claims can be brought against a former spouse regarding their assets or income in future.

In some cases, it will not be possible for there to be an income clean break, for example where spousal maintenance is appropriate.  Then an income clean break will not be possible for the duration of the spousal maintenance order. However, it is often the case that there will be a capital clean break order, following transfers of capital assets to achieve fairness between the parties, whether that is to achieve sharing or to meet needs.

 

If you would like advice about Divorce or Financial remedies, please contact our Family Team at 01206 700113 or contact us