Clean break or periodical allowance on divorce or dissolution in Scotland

In Scotland, couples usually try and arrange a ‘clean break’ after fairly dividing the property, money and other assets acquired during a marriage or civil partnership (known as the matrimonial or civil partnership property).

A clean break means that after you decide how the property and assets will be divided, you agree to end all financial ties between you and your ex-partner as soon as reasonable after your divorce or dissolution.

It gives each person certainty and freedom to move on with their lives knowing the other person cannot make a claim against them for money in future.

If you agree a clean break, there will be no ongoing maintenance paid to either partner – known as periodical allowance. Child maintenance payments are dealt with separately if you have children.

Instead, you may be given a lump sum or property transfer as your share of the ‘property’ from the relationship.

A couple is considered to have separated on the date they stop living together as spouses or civil partners.

You should take note of your date of separation and what assets you both have at this time. It will be used to work out what counts as ‘matrimonial or civil partnership property’ if you go through with the divorce or dissolution.

This includes:

• your home (and furnishings) if it was bought to use as a family home, including if the property was purchased before the marriage or is in only one partner's name
• assets acquired between the date of your wedding or civil ceremony, up to the date of separation (such as savings, vehicles, joint bank accounts and pensions)
• debts or loans taken out during the marriage or civil partnership.

Gifts from third parties and inheritances are not usually included if they stay in their original form.

For example, if you inherited a sum of money and kept it as cash, it wouldn't count as matrimonial or partnership property. But if you used that money to buy a property or make an investment, it would.

Anything that falls outside matrimonial or partnership property is not counted when working out how to divide your assets, but it can still be considered in other ways, for example, when agreeing what is an appropriate lump sum payment.

You’ll be expected to divide the value of your property and assets fairly – but this may not mean it is split equally, such as:

• when property was used for a specific purpose, or was bought using money or assets that didn't come from the couple's joint efforts
• if you or your ex-partner gave up your career to raise your family
• if one partner takes on the majority share of childcare costs.

If you or your ex-partner is financially worse off because of your relationship, and an equal split doesn't fully address that disadvantage, an adjustment may be made to make it fair.

In some cases, you may receive ongoing maintenance payments (known as a periodical allowance) for up to three years after divorce or dissolution, or a lump sum payment.

If your divorce or dissolution has the potential to cause serious financial hardship – for example, due to long-term illness or a lack of capacity to work – periodical allowance may be paid for longer, or an additional lump sum may be awarded to help adjust to the loss of financial support.

When you’re working out how to divide your property and assets, it might make sense for one partner to pay the other a lump sum amount. This is called a ‘capital sum’ and can help to make sure your finances are divided fairly.

Property and assets can be divided in several ways, by:

• transferring ownership
• selling and splitting the proceeds, or
• sharing a pension.

Whatever the approach, the goal is it should be a fair split that takes both partners' resources into account.

A lump sum payment doesn’t have to be paid in one go, although it often is.

Lump sum payments can also be spread across several instalments if needed, such as:

• when a partner can't pay the full amount at once
• if payment depends on a property being sold first.

If you both agree to paying a lump sum in instalments, the payment dates should be clearly set out in a written agreement.

Periodical allowance is a legal order for you or your ex-partner to pay a regular income to the other person after divorce or dissolution.

It can be paid for up to three years after your divorce or dissolution. It can be paid for longer if it’s needed to stop someone from experiencing serious financial hardship, although this is rare.

If you’re still married or in a civil partnership, but are separated and living apart, one partner may be required to pay aliment to the other. 

Aliment is financial support meant to help with reasonable living expenses while you are in the process of divorcing or ending your civil partnership.

Find out more in our guide Arranging aliment in Scotland.

Periodical allowance is typically only paid (awarded) when a clean break settlement, such as a lump sum payment or property transfer, would not leave you with enough to support yourself financially.

This includes if:

• one of you has been substantially financially dependent on the other
• one of you needs time to adjust to losing financial support
• one of you would face serious financial hardship without support.

It's usually paid for a maximum of three years, and payments end automatically if the person receiving it remarries, or when they die.

If divorce or dissolution would cause you or your ex-partner genuine financial hardship, payments may continue beyond three years. This may be due to a health condition, a long period out of work, or not yet being able to access a pension.

Yes, if your circumstances change significantly, you can apply for the periodical allowance to be varied or recalled.

It may also be possible to change from periodical allowance to a lump sum payment or property transfer if you both agree.

If you receive periodical allowance, it’s worth considering taking out insurance to protect your income if your ex-partner were to die while payments are still being made.

Although periodical allowance would continue to be owed from their estate after death, this change in circumstances could lead to their estate applying to change the amount paid.

A life insurance policy helps guard against this uncertainty. It doesn't need to be expensive and can pay out either a lump sum or regular monthly payments.

Find out more in our guide What is life insurance?

It’s worth reading our guide What to do with a lump sum payment after divorce or dissolution.