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Separation Agreement: Why and When you need one

Love knows no depths until the hour of separation.



Finding yourself in the middle of a family problem can be complicated and confusing. Family and Divorce matters involve a variety of circumstances. Now is the time to take a deep breath and figure out your options. 

Contacting a lawyer can be an invaluable tool for navigating the system,m and depending on your circumstance, a separation agreement may be one of the options.

Separation agreements are contracts that deal with the disentanglement of ties and a settlement of the issues between two parties in a marriage, common-law partnership or interdependent relationship.


Simply put, a separation agreement is a legal document that outlines the responsibilities and obligations of each party after they have separated.

A separation agreement is an effective and affordable way for both parties to deal with all the issues that may arise from the relationship breakdown. 

For a separation agreement to be created and recognized as legally binding, the terms must be agreeable by both parties seeking Independent Legal Advice (ILA). The document is an all-encompassing, 20-30 page document that deals with past, present and future issues.

Other names for a separation agreement may include:

  • Divorce and Property Agreement
  • Minutes of Settlement
  • Separation contract‌
  • Separation papers‌
  • Formal separation agreement‌
  • Legal separation form

Purpose of a Separation Agreement

To move on amicably, you must contemplate the past and present, which is what a separation agreement helps ex-partners do in a nutshell. It provides a holistic guide for couples about to divorce or who merely want to separate for some time to reconcile.

Separation agreements can be reached through negotiations between the parties directly, talks between the parties lawyers, mediation, and other dispute resolution mechanisms. In addition, the agreement can be used as tangible proof when conducting post-separation transactions with Canada Revenue Agency, your employer, and the bank.

The agreement encompasses

  • Custody and guardianship of the children
  • Retirement Income, Pensions, and Other Income
  • Parenting arrangements
  • Spousal buy-outs/Mortgage refinance/Sale and division of property
  • Child support
  • Spousal support/Alimony
  • Division of family property/Assets (savings, vehicles, investments, RRSP's/stocks, collectable and valuable items).
  • Debt and any possible future claims.

Importance Of Seeking Independent Legal Advice (ILA)

When proceeding with a separation agreement, it is essential and legally required to seek Independent Legal Advice (ILA) from a family lawyer. As previously mentioned, It will not be legally binding if you do not get legal advice.

The legal advice provides step-by-step processes that centre on making logical decisions instead of a written emotional circus that focuses on non-factual differences of opinion. Due to the complexity of a separation agreement, it is essential to have an objective and independent advocate assist you.

Having a third party ensures you have not missed anything. The legal adviser tells you what the law entitles you to and explains the facts of your situation as it applies.

What Are The Requirements of A Separation Agreement

Under the Family Law Act, separation agreements must,t at a minimum:

  • Be in writing
  • Signed by both spouses
  • Be witnessed (in some cases, courts have said spouses can see each other's signature, res).
  • Include complete and transparent financial disclosure
  • Not be made under Duress or Unconscionability
  • Obtain independent legal advice

In Canada, a separation agreement is not enforceable if one partner signed the agreement without knowing and understanding its contents, the deal was not prepared following the law of contract,t or one party failed to disclose the full details of their assets, property, income and finances,

Benefits of a Creating A Separation Agreement

The benefits of a separation agreement include the following:

Divorce and Costs –A divorce agreement outlines who is responsible for what financially after a divorce. This can help prevent arguments and disputes about money.

Time: Time: It saves you time in court doing litigation and other divorce proceedings when the need arises if you can compromise on items not included in the separation deal.

Working Flexible System: When you have a document in place that outlines the terms of your separation, it provides guidelines on managing your future affairs rather than leaving it for a court order to decide.

Privacy: Unlike divorce proceedings, a separation agreement does not have to be filed with the court to be binding, This agreement is private, and nobody can access it unless you permit them to do so.

How Much Does a Legal Separation Cost?

One of the most common questions asked by spouses and common-law partners is how much it costs to get a separation agreement.

However, the cost is generally based on different considerations, including the couple's decision to make a separation agreement or their intention to get divorced in the future. For example, would there be an uncontested or contested divorce? What the lawyers' fees would be et. c?

In most cases, an uncontested divorce costs approximately $1,740, and a contested divorce might need roughly $23730. This is because a contested divorce costs double or triple more than an uncontested divorce.

On average, a legal separation agreement costs less than $3,000. Still, the cost varies when considering other variables, including the cost of child support and custody cases which may skyrocket the separation agreement cost up to about $16,000.

An uncontested separation agreement costs with children issues vary from a contested separation agreement without children issues and vice versa. For these reasons, it is difficult to pinpoint the exact cost of a legal separation or a divorce because it is decided in each case.