Deciding to separate is never easy, and even when you’re both on the same page and it’s a mutual agreement there are still practical considerations to take into account, especially if you have children. Sitting down and making a plan or guide for how you’re both going to move forward means that you can have, at least to some degree, a path forward through these trying times.
Here we present a guide to separation agreements, in particular how they might work for you, and the kinds of things to consider when it comes to arranging yours.
What Is A Deed of Separation Agreement?
Separation Agreements, also known as Deeds of Separation, are agreements between a couple – married or unmarried – in the form of a legal contract. They are primarily used to outline financial decisions such as mortgage or rent payments, as well as responsibility for outstanding household bills or other debts following the separation. If there are children from the relationship a Separation Agreement may also outline details of who the child will live with and when they will see the other parent.
Separating, divorcing, or dissolving a civil partnership is a lot easier when everyone involved knows exactly how finances or childcare responsibilities are being divided. A deed of separation agreement can be a good way of establishing these rules until the divorce or dissolution is finalised.
The agreements can also help avoid court proceedings down the line when applying to the courts for divorce and negotiating a financial settlement. The details in these agreements can form the basis of a financial consent order which will end the possibility of future claims. It will also give the court powers to enforce any part of the agreement in the case that one party fails to comply.
Married Couple Separation Agreements
Separation agreements can be useful for married couples who perhaps aren’t yet ready to take the next step in starting divorce proceedings.
They act as a precursor to the court application, and as long as the agreement was drawn up in good faith, without duress, and that all the financial disclosures were truthful, a judge will likely uphold the agreement.
Unmarried Couple Separation Agreements
Any couple that is together long enough – whether married or unmarried – will build up joint interests they need to deal with should they decide to separate. This might include cars, savings, bills, belongings, or even a mortgage.
Those who co-habit as a couple rather than get married, however, don’t have as many rights and protections as their married friends when they separate. Deciding in advance what will happen with those assets such as cars or savings, as well as with liabilities such as bills or credit cards, will make the separation process easier.
How Do Separation Agreements Work?
How an agreement works very much depends on the terms within it, and each party will need to comply with their responsibilities such as selling the property and splitting the funds equally, or paying off their share of a loan.
If either person fails to comply, the other will be able to pursue legal action for breach of contract, however without proper drafting of the agreement it may not be legally binding.
When considering a Separation Agreement both parties should seek independent legal advice before signing. It may also be appropriate to consult a specialist financial advisor where things like savings, investments, or pensions are involved.
What Can Separation Agreements Include?
The agreement will usually cover a variety of topics or potential future scenarios. This is not an exhaustive list, but covers many of the most common aspects:
- How much each will pay toward mortgage, rent, and bills.
- How much each will pay to cover any debts such as loans or overdrafts.
- How the money from selling a home will be split once fees are paid.
- How joint bank accounts and savings will be split.
- How personal property such as cars and furniture will be divided.
- Will there be maintenance payments toward one party and/or any children?
- Would a lump sum payment be a suitable alternative to maintenance?
- Who will children live with? When will they see the other parent?
What Are The Pros And Cons Of A Separation Agreement?
Pros:
- Both parties know where they stand which can help reduce conflict and acrimony.
- They provide a clear path forward at a difficult time.
- Each party can decide what they would like to include.
- They demonstrate that both parties deem the relationship to be over.
- They are likely to be upheld by a court if they are drafted properly.
Cons:
- Changes cannot be made without the consent of both parties.
- When it comes to divorce the court may choose to disregard part or all of the agreement.
What To Do Next
If you would like more information about separation agreements or family mediation in general please call us on 0333 567 1676 or click here to send us a confidential message.
