When a relationship ends – whether it’s a marriage, civil union or de facto partnership – there is often a lot to sort out.
Who gets the house? Who pays the mortgage? Without a clear plan, uncertainty can turn into conflict, fast.
The Property (Relationships) Act 1976 enables couples to settle differences by agreement, including deciding how property will be owned, divided, and managed. This is where separation agreements come in.
What is a separation agreement and when is it needed?
A separation agreement is a legally binding document that sets out how you will divide your property after separation. Done early, it can help avoid disputes and provide certainty.
Key benefits of entering into such agreements include:
- They provide a formal record of separation. This is particularly useful because it can be used as evidence of living apart for the required period necessary to dissolve a civil union or marriage.
- They record decisions made at separation. This helps avoid future disputes and legally protects decisions made. Without an agreement, you are exposed to future claims.
What can be included in a separation agreement?
Separation agreements are flexible and can include a wide range of arrangements tailored to your circumstances such as:
- Division of relationship property.
- Financial arrangements including responsibility for debts.
- Ongoing financial support.
Avoid costly mistakes – why legal advice matters
Failing to get expert legal advice is the biggest pitfall in setting up a separation agreement.
While informal arrangements can be made, agreements at the time of separation may become ambiguous or people may change their minds – even in amicable separations.
Failing to have a legally binding agreement can make dealing with these situations costly and time-consuming because there is no legal protection.
If the agreement covers relationship property – such as the family home, chattels, or income earned during the relationship – it must meet the following strict legal requirements to be binding:
- Be in writing and signed by both parties.
- Each party must have independent legal advice
- Signatures must be witnessed by a lawyer who explains the implications
A failure to meet these requirements will result in an invalid agreement and either party could later make a claim.
A well drafted separation agreement can save time, reduce stress, and protect your interests. Please reach out to our expert team who can help you create one.
