A Complete Guide to Understanding Separation Agreements In the UK

What Is a Separation Agreement UK?

A separation agreement is a written contract between a couple who decide to live apart but are not ready to divorce or end their civil partnership. It sets out how they will divide their money, property, and financial responsibilities during the separation.

Separation agreements are not automatically legally binding in England and Wales, but if certain conditions are met, the court can enforce them.

The main purpose of a separation agreement is to clarify and reduce conflict by documenting agreed-upon terms on issues such as financial support, living arrangements, and asset division.

Separation agreements are useful if you haven’t decided whether to divorce, cannot divorce yet, or want to avoid the cost of court proceedings.

Separation agreements are important because they:

• Help manage financial arrangements while separated, such as deciding who will pay bills, rent, or the mortgage.
• Protect both parties’ interests: It works for people who are separated but still married or in a civil partnership and even for unmarried couples.
• Avoid costly disputes: By agreeing on terms privately, couples can reduce the financial and emotional cost of legal disagreements.
• Provide a framework for the future: Whether the separation leads to reconciliation or divorce, an agreement ensures key issues are addressed early.

The details outlined in your separation agreement can be drafted into a consent order later during the divorce process, which ends all future financial claims and gives the court powers to enforce any aspect of the agreement should one party fail to comply.

How much does a separation agreement cost?

In the UK, a separation agreement typically costs between £900 and £3,000. However, the final cost depends on several factors, including the complexity of your finances, whether you use a solicitor, and if negotiations are required.

Other factors that can affect the cost of a separation agreement include whether you use a solicitor or a DIY template, the complexity of your finances (such as property, pensions, and joint investments), and whether both parties agree on terms.

Disputes requiring mediation, independent legal advice, or potential court involvement can also increase costs.

You can save money by using a fixed-fee service from Divorce-Online for £799. Our service includes expert drafting to ensure your agreement is clear, fair, and legally sound.

What can be included within the agreement?

A separation agreement can cover a range of areas, such as:

• How much each party is to pay in respect of the mortgage, rent or household bills.
• How any debts such as loans and overdrafts will be split between you.
• How the money from the sale of a home will be split after payment of fees.
• How to separate joint bank accounts and savings.
• Division of personal property such as cars, household goods and furniture.
• The payment of any ongoing maintenance for a spouse or children.
• Who the children will live with and when they will see the other spouse, e.g. parental access.
• A lump sum order whereby a specific sum of money is paid to either party as an alternative to maintenance payments.

Here are some of the key elements that are typically included in a separation agreement:

Property

The agreement should set out what is to be done with the property that the couple has been living in. For example, they may need to take steps to sell their house or flat and divide the proceeds from the sale according to the agreement.

Alternatively, one party may agree to buy out the other party’s share of the property.

Finances

The agreement should include details of how the couple’s finances will be managed during the separation period. This may include details of how bills will be paid and how joint accounts will be managed. It may also include details of how any debts or loans will be repaid.

Children

If the couple has children, the agreement should set out arrangements for their care and welfare.

This may include details of where the children will live, who will have parental responsibility, and how much time each parent will spend with the children. It may also include details of how child maintenance will be paid.

Pensions

The agreement may also include details of how any pensions will be divided between the couple. This is particularly important if one party has a significantly larger pension than the other.

Other Issues

The agreement may also cover other issues such as the division of personal belongings, arrangements for pets, and any other matters that the couple wishes to include.

It is important to note that a separation agreement is a legally binding document, so it is important to seek legal advice before signing one.

A solicitor can help ensure that the agreement is fair and that both parties understand what they are agreeing to.

The Legal Validity of Separation Agreements

There are several factors that can affect the legal validity of a separation agreement. Firstly, the agreement must be entered into voluntarily by both parties. If one party was coerced or pressured into signing the agreement, it may not be legally binding.

Secondly, the agreement must be fair and reasonable. If the agreement is heavily weighted in favour of one party, it may be challenged in court.

And lastly, the agreement must be properly executed. This means that both parties must sign the agreement and have it witnessed by an independent third party.

It is important to note that a separation agreement is not the same as a divorce or dissolution of a civil partnership. It’s a way for parties to separate without going through the legal process of divorce or dissolution.

However, if the parties later decide to divorce or dissolve their civil partnership, the separation agreement can be used as evidence of the terms of their separation.

How do separation agreements work from a practical perspective?

Depending on the agreement you have reached, you may need to carry out certain actions upon separation such as selling a property and splitting the proceeds equally.

If either party fails to respect the provisions of the agreement, the other party may take legal action for breach of contract if the terms of the agreement have not been carried out.

However, if the deed is not drafted correctly then it may not prove to be legally binding.

It is, therefore, important that both of you receive separate and independent legal advice before signing the agreement, as this may be needed as evidence in any court proceedings to enforce the terms of the agreement.

Like any contract, the only way to enforce it is to take the matter to court.

Can we write a separation agreement ourselves without solicitors?

When would you need a separation agreement?

If you plan to get divorced at some point then it is well-advised to enter into a separation agreement to put the separation in writing, so this can be referred to later during the divorce to prove consent and agreement between both parties. Circumstances could be:

• You are not eligible to file for a divorce because you married less than one year ago
• There is a chance you may reconcile after you’ve had time apart from one another
• You find it less stressful to negotiate a separation agreement than to negotiate a divorce financial settlement