When a marriage ends, sorting out finances can be just as stressful and complex as the emotional aspects of separation. In the UK, divorcing couples are encouraged to settle their financial matters through legally binding court orders. Two of the most common types of financial orders are the Clean Break Order and the Full Financial Order. While they might sound similar, they serve very different purposes.
In this blog, we will explain the differences between these two legal tools, how they work, and when each one might be appropriate during a divorce. Whether you’re considering a separation or already working with a divorce lawyer, understanding these legal distinctions is essential for protecting your financial future.
Understanding Financial Orders in Divorce
When you get divorced, you must consider the long-term division of finances, assets, and responsibilities. A financial order in divorce is a legal document issued by the court that finalises financial arrangements between former spouses.
There are several types of financial orders available, including:
- Clean Break Orders
- Full Financial Orders
- Consent Orders
- Maintenance Orders
- Pension Sharing Orders
Among these, the Clean Break Order and Full Financial Order are the most commonly misunderstood. Let’s take a closer look at both.
What is a Clean Break Order?
A Clean Break Order does exactly what the name suggests – it enables both parties to completely sever their financial ties following divorce or the dissolution of a civil partnership. Once issued, neither party can make any financial claims against the other in the future.
Key features of a Clean Break Order:
- It dismisses all current and future financial claims.
- It allows both parties to move on independently.
- It applies to income, capital, inheritance, and pensions.
- It is legally binding once approved by a judge.
- This benefit can only be applied if a divorce has been legally finalised.
When is a Clean Break Order appropriate?
- When there are no shared assets or ongoing responsibilities.
- When both individuals are financially self-sufficient.
- When a one-off lump sum or asset division resolves all financial matters.
- When there are no dependent children involved (or suitable alternative arrangements are in place).
Advantages:
- Finality – neither person can return in future to make financial claims.
- Emotional closure and financial independence.
- Simpler financial arrangements.
Limitations:
- Not suitable if one party relies financially on the other (e.g. stay-at-home parent).
- Doesn’t provide ongoing support through maintenance.
What is a Full Financial Order?
A Full Financial Order is broader and includes all financial arrangements agreed between the parties or ordered by the court. This could include property transfers, pension sharing, spousal maintenance, and child maintenance agreements.
Key features of a Full Financial Order:
- Covers all aspects of financial settlement post-divorce.
- Can include regular maintenance payments as well as lump sums.
- Often used where a clean break is not practical or fair.
- May include provisions for future changes (e.g. end of spousal maintenance after a certain time).
A Full Financial Order might contain:
- Division of the marital home or other properties.
- Splitting of pensions and investments.
- Payment of debts.
- Spousal maintenance.
- Child maintenance (although usually calculated via the Child Maintenance Service).
When is a Full Financial Order appropriate?
- When one party requires ongoing financial support.
- When there are complex assets involved, such as businesses, pensions, or overseas property.
- When child maintenance or school fees need to be arranged.
- When the financial situation is imbalanced and one party needs protection.
Advantages:
- Provides flexibility and fairness in complex situations.
- Can include ongoing support for a vulnerable spouse.
- Suitable for long-term planning, particularly involving children or pensions.
Limitations:
- Doesn’t always result in a complete financial separation.
- Leaves the possibility of future disputes if circumstances change.
Clean Break vs. Full Financial Order: A Summary
Here’s a side-by-side comparison to help clarify the key differences:
| Feature | Clean Break Order | Full Financial Order |
| Future Claims | Not allowed after the order | May be allowed depending on order details |
| Spousal Maintenance | Not included | Can include maintenance payments |
| Child Maintenance | Not included (dealt with separately) | Can be referenced but not legally binding |
| Pension Sharing | Can be included if necessary | Often included |
| Use Case | Suitable for simple, low-asset divorces | Suitable for complex or financially imbalanced divorces |
| Legal Finality | Offers complete financial independence | May require future communication or variation |
Do You Need a Divorce Lawyer?
While it’s possible to apply for financial orders without legal representation, consulting a divorce lawyercan be hugely beneficial. A lawyer will:
- Ensure all financial assets are disclosed.
- Help draft legally sound proposals.
- Represent you in court if needed.
- Advise on which type of order best suits your situation.
- Negotiate fair settlements to avoid long-term hardship.
In many cases, the difference between a financially secure future and a risky settlement comes down to the quality of legal advice you receive. If you are unsure which route is best for you, speaking with a qualified divorce lawyer can clarify your options. Visit this guide on financial and property disputes for further information.
Why Getting a Financial Order Matters
Some couples assume that once they’re divorced, financial ties are automatically severed. Unfortunately, that is not the case in England and Wales. Without a financial order in place:
- Your ex could make a financial claim years after the divorce.
- Any future wealth you acquire (e.g. inheritance, lottery win, or property) could be at risk.
- Verbal agreements or informal arrangements carry no legal weight.
A court-approved financial order in divorce is the only way to ensure financial certainty and legal protection.
Final Thoughts
Understanding the difference between a Clean Break Order and a Full Financial Order is crucial when navigating the end of a marriage. The right choice depends on your circumstances, assets, and future needs.
To recap:
- A Clean Break Order offers finality and freedom, but is only suitable for those who are financially independent.
- A Full Financial Order provides a comprehensive settlement, potentially including ongoing maintenance and pension sharing, but it may not sever financial ties completely.
In all cases, seeking legal advice can save time, reduce stress, and protect your future interests. Whether you’re just beginning the divorce process or seeking to formalise a financial agreement, consider working with a trusted divorce lawyer to ensure your legal and financial position is secure.
