Separation Agreement
What is a Separation Agreement?
A separation agreement is a legally binding document, a type of domestic contract, that contains the terms of settlement reached by you and your ex. Often it addresses parenting, child support, property division, and spousal support. A separation agreement will help you to manage your income and your assets and will set out how you will parent and financially support your children. Your bank might need to have a separation agreement to purchase a new home, or to secure a mortgage.
A separation agreement documents the arrangements that you and your ex have reached about things like:
- How you will make decisions about your children.
- A parenting schedule.
- How you will financially support your children – read more.
- What to do with your home.
- Where everyone will live.
- Whether there is entitlement to spousal support and if so, what will be paid for spousal support.
How you will divide your property, which includes things like:
- Your home.
- Investments (and debts).
- RRSPs and RESPs.
- Bank accounts.
- Pensions.
- Vehicles.
- Household contents.
- Business that you own.
What Makes a Good Separation Agreement?
At a minimum, Ontario law requires that a separation agreement be in writing, signed by the parties, and witnessed. A good separation agreement, however, will be signed after the parties have exchanged financial disclosure about their incomes, assets, and debts, and after each party has gained a full understanding of his or her rights and responsibilities. The best way to ensure that each party has that full understanding is for each party to have independent legal advice (i.e. a lawyer who acts only for that party) prior to signing the separation agreement.
Consulting a family law lawyer before you negotiate the terms of your separation agreement is a good idea. You will make the best decisions about what needs to be in your separation agreement if you understand the financial circumstances and the law that applies to your situation. You also need to understand your rights and responsibilities as a parent.
Making a list of the things that you think your separation agreement needs to address before you consult a lawyer can be very helpful. Preparing your own draft separation agreement and taking it to a lawyer is not recommended. Most agreements that you find on the internet are not appropriate for Ontario, and they are often incomplete. Revising an agreement that was prepared by someone who does not practice family law in Ontario is an expensive thing to ask your lawyer to do. Most law firms, including PBS Law, work from precedents that make drafting a separation agreement pretty quick once there is agreement on terms.
What is the Process for Preparing a Separation Agreement?
Usually, I meet with my client to discuss the various financial and parenting matters that need to be sorted after separation. The consultation can be in-person at my office or virtual. The consultation gives you a chance to decide if you would like to continue to work with me.
We talk about your rights, responsibilities, and concerns.
We talk about the process that is available to have the necessary discussions with your ex in order to arrive at a separation agreement. The process includes:
- Discussions between the parties
- Discussions between counsel
- Discussions with counsel and the parties together (sometimes called a four-way meeting)
- Mediation (with or without counsel)
- Asking a court to decide
- Collaborative divorce or separation – read more.
We discuss how best to collect the relevant financial information. Read more.
We engage in one or more of the processes. I might draft the agreement, or your ex’s lawyer might draft the agreement. We review and discuss any necessary revisions. When both parties are happy with the draft separation agreement, we arrange for the agreement to be signed by the parties and their signatures witnessed.
What is the Cost for a Separation Agreement?
The cost of preparing and advising on a separation agreement varies. It is dependent on the number of hours of work involved. The number of hours of work varies with the number of issues that need to be sorted, how organized each party is about assembling the relevant financial disclosure, and whether or not the parties agree on terms for the separation agreement. Talk to your lawyer at the initial consultation about probable costs.
