Let us say that we have constructed the positive real numbers in some fashion (possibly including 0). Let us furthermore assume that we have defined addition and multiplication for ordered pairs of such numbers (an ordered pair $(x,y)$ is supposed to represent the difference $x-y$, but you cannot properly define subtraction for positive real numbers), and proved that these operations "work properly".
So we have reached the state where we have a ring $(K/\sim, +,\cdot)$ which extends $(\mathbb R^+,+,\cdot)$. Finally, let us assume that we already have division for $\mathbb R^+$.
Now. How exactly do we show that multiplicative inverses exist, that is, that for any pair $(x,y)$ there exists a pair $(x',y')$ such that their product is equivalent to 1? Using the definition of multiplication for ordered pairs, we need to find $(x',y')$ such that $$(xx'+yy', xy'+x'y) \sim (1,0).$$
I have tried, but all I can get is that this reduces to $$x'-y' = \frac{1}{x-y}.$$ Unfortunately, as we still cannot actually subtract positive real numbers, this does not seem to help.
One possible solution would be to show that having gotten this far, we can now actually subtract positive real numbers by using their isomorphic embedding in the extension. I have the feeling that this is the way to go, but I simply do not see how to write down a proof. It should be based on the following ordering of ordered pairs: $$(x,y)\le(x',y') \Leftrightarrow x+y'\le x'+y.$$ Basically, it seems we have to show somehow that expressions like $\sqrt2-\sqrt3$ (and also $\sqrt3-\sqrt2$!) make sense now.