Do I Need a Clean Break Agreement?

A clean break agreement, also known as a clean break order, is a legal agreement between two parties that details the financial arrangements following the breakdown of a marriage or civil partnership. This agreement ensures that both parties have a clear understanding of their financial obligations to each other and can move on with their lives without any lingering financial ties.

If you are going through a divorce or separation, a clean break agreement may be beneficial for a number of reasons.

Firstly, it provides clarity and certainty. Without a clean break agreement, your financial ties with your ex-partner may continue indefinitely, and this can cause tension and uncertainty. A clean break agreement ensures that both parties know exactly where they stand and what their financial obligations are.

Secondly, a clean break agreement can protect your assets. Without a formal agreement in place, your ex-partner may be able to claim a share of your assets in the future, even if they were acquired after the separation. A clean break agreement can prevent this from happening and give you peace of mind that your assets are protected.

Thirdly, a clean break agreement can be beneficial for your credit score. If you have joint finances with your ex-partner, such as joint bank accounts or loans, these can affect your credit score even after the separation. A clean break agreement can help to separate your finances and protect your credit score.

In conclusion, a clean break agreement can be a sensible and practical solution for those going through a divorce or separation. By providing clarity and certainty, protecting your assets, and safeguarding your credit score, a clean break agreement can help you to move on with your life without any financial ties to your ex-partner.