Unless they’re rich and famous, and people are telling them to protect their cash and assets, the majority of people who are married or living common-law don’t have prenuptial agreements (“prenups”), cohabitation agreements, or marriage agreements in place. But with so many marriages ending in divorce, and so many relationships ending, period, is it smart to have some kind of contract?
What is a separation agreement?
A separation agreement is a type of contract signed when you and your spouse decide to separate. This contract is intended to lay out the terms of your separation in order to:
- avoid confusion and conflict,
- assist in financial planning, and
- make the separation process simpler and more straightforward.
Dividing assets in a divorce usually involves spouses making checklists and then working through the details. You would think that little is missed by most couples, but one important item is being missed by 85 percent of Canadians in their divorces. Continue reading