What to Include in a Couple’s Separation Agreement and Why?

Couple separating in Canada

When a couple decides to end their marriage, they will have to come up with an agreement on how the couple will split up their property and assets. This is known as a separation agreement. It’s legally binding and can help both parties to move on. A divorce or family lawyer can help you draft your separation agreement and guide you through the process. Division of assets to child custody and other legal issues can be negotiated in the separation agreement.

If you are separating from your partner, you may wish to consult with a divorce lawyer before you agree to anything. Here’s everything you need to know about the couple’s separation agreement.

What is a Separation Agreement?

A separation agreement is a legal document that outlines how the couple will divide their property, debts, and child custody after they have filed for divorce. It is created when a married couple has ended their marriage or common law relationship. A separation agreement differs from a divorce agreement because it includes provisions for a couple to discuss their legal separation without it coming to court.

The agreement document is legally binding for both parties, and they must abide by it during and after the divorce proceedings. It can be used to negotiate all legal matters, including child custody, property division, alimony, spousal support, and child support. The agreement can also address future joint ventures and business ownership. This allows for smooth transitions in the relationship and helps to avoid disputes down the road. Consulting with a family lawyer is useful and can save you a lot of money and time.

Why is a Couple’s Separation Agreement Important?

There are some reasons a couple might want to create a separation agreement. Separation agreement saves lengthy and costly court proceedings and enables couples to agree on everything before the court is involved. Couples have more control over the terms of the agreement as opposed to when a judge intervenes and makes all the decisions for them. If both parties can agree on the details, then they can move forward with their affairs and get on with their lives without any need for legally enforced orders.

Additionally, it also provides clarity and certainty about the future of the couple’s relationship. The agreement outlines all the terms of the separation and ensures there are no surprises or unforeseen issues which may come up after the divorce proceedings. This is especially helpful for couples with children who need stability and consistency in their relationships.

Lastly, separation agreements can reduce stress and emotional turmoil significantly. Separating from a partner is not easy and is likely to cause a lot of hurt and pain. A separation agreement allows for an immediate separation without going through the legal system and losing time and resources. It makes separation much easier on both sides and reduces the overall amount of stress involved.

 Unhappy couple

What Should be Included in the Separation Agreement?

There are many aspects to a separation agreement that should be included. Here are some key things to include:

Division of Debts and Assets

One of the most important aspects of a separation agreement is determining who gets what after the divorce is finalized. This can include assets such as real estate, cars, furniture, bank account credits, and investments. It can also include debts, such as student loans, mortgages, and credit card bills. It’s also important to determine how much each person will receive in alimony and child support.

Child Custody

Woman with her daughter

Couples with children often need to decide on custody arrangements for their children as well. This will discuss how each parent will share time with their children and how they will make major decisions about the child’s life (such as education and healthcare). Additionally, the agreement should include a plan for child support payments to ensure that both parents contribute financially to the child’s upbringing and well-being.

Spousal Support

This section should address whether one spouse will provide financial support to the other, and if so, how much and for how long. If either one of the spouses has given up their career or earning potential to take care of the household and children during the marriage, this section should also consider compensating them for that lost earning potential.

Division of Property

Some properties that may need to be divided in a separation include the marital home, vehicles, bank accounts, retirement accounts, investments, and personal belongings like gifts and inheritances. It is important to have a detailed and comprehensive inventory of all assets and debts, as well as their current values and how they will be divided between spouses.

Other Relevant Issues

This section will include other relevant issues such as life insurance policies, tax obligations, and how any jointly-owned debts and outstanding bills will be divided and paid off.

Essential Steps to Take Before Finalizing Separation Agreement

Organizing Finances

Before the separation agreement is finalized, both spouses need to have a clear understanding of their finances. This includes opening individual bank accounts if they didn’t have one already, dividing assets and receiving income and expenses separately.

Separating couple with a family lawyer

Additionally, make sure you list all your assets and liabilities, such as TFSA, vehicles, line of credit, and other debts, before the separation agreement. Lastly, keep all copies of the financial documentation, including bank statements, tax returns, and investment records, as they may be required for reference in case of any disputes or issues in the future.

Budgeting

Prepare a detailed budget for the post-separation period to help manage finances and living expenses. This will help both spouses understand their financial situation and adjust their lifestyles accordingly, as they may be living on a reduced income after the separation.

Confirming Divorce or Separation Dates

Identify the official date of separation or divorce as it will be used to determine important factors such as the following:

Divorce Application: Couples can only file for divorce after being separated for a certain time, depending on the laws in their jurisdiction. This waiting period varies by location, so it’s important to confirm the official separation or divorce date with a family lawyer or government agency.

Division of Assets: Some asset division law takes the duration of the relationship into account when dividing assets, so it’s important to have a clear separation date. The spouse who acquired an asset after the separation date may be able to keep it as their own, while assets acquired during the relationship may need to be divided between both parties.

Is A Separation Agreement the Same for Married and Common-Law Couples?

Canadian law does not distinguish between married and common-law couples when it comes to separation agreements in areas like child support, child custody, alimony, child access, and debts. However, property rights differ for married and common-law couples, which may affect the division of assets in a separation agreement. It’s important to seek legal advice from a family lawyer who can guide both parties through the separation agreement process and ensure that it is legally binding and fair for both parties.

Role of a Family Lawyer

Coupe with a family lawyer

A family lawyer can provide legal advice and guidance throughout the separation agreement process, negotiate with the other party on behalf of their client, and draft the final separation agreement. They can also assist with any disputes or issues that may arise during the separation process and represent their client in court if need be. Here are some reasons why it is important to hire a family lawyer during a separation or divorce:

Understanding the Legal Process

A lawyer trained and experienced in family law will be able to assist you in negotiating a separation agreement that is in your best interest. A lawyer will have the knowledge and experience necessary to assess your options and advise you about your best course of action.

Negotiating with Your Spouse

Once you have hired a family law lawyer to help you with your divorce, you’ll need to talk to your spouse about what the terms of your separation agreement should be. Your lawyer will be able to help you navigate this difficult process and guide you through all aspects of the negotiations so you can reach an agreement that is in your best interests.

Protecting Your Rights

A lawyer will be able to provide you with legal guidance throughout the entire process and help you understand what you are signing on to when you enter into a separation agreement.

If you’re looking for a reliable and experienced family lawyer, make sure to contact our office today. At Nanda & Associate Lawyers, we offer a wide range of legal services to help our clients with all of their family law needs.

We also have immigration lawyers who can help you apply for family and spouse sponsorship in Canada, and real estate and business lawyers, who can advise you on real estate matters and business ownership issues.

Contact us to learn more.

 

 

Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for legal advice.

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