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Do I Really Need a Separation Agreement?
Why You Should File a Separation Agreement for Every Separation
Although separating from a spouse is never pleasant, some couples manage to remain amicable throughout the entire process. In most cases, that’s because they don’t have children or shared real estate to cause additional strife during the split. As a result, the spouses can go their separate ways without worrying about visitation schedules, equitable property distribution, or child support.
Couples splitting amicably often don’t believe they need a separation agreement. After all, if the process is straightforward and carefree, it may appear that all potential concerns can be solved through verbal arrangements.
However, this belief is generally misguided. Regardless of your good relationship with your former spouse, signing a separation agreement is beneficial for both parties. Keep reading to discover the advantages this document offers to couples in North Carolina.
What Is a Separation Agreement?
A separation agreement is a private contract signed by the spouses that becomes valid once it’s notarized. Its primary purpose is to reflect each partner’s wishes and needs, providing assistance during the marriage dissolution and helping with the division of property, custody, possessions, and obligations.
As a rule, spouses enter into a separation agreement without the court's involvement. Despite that, the contract is legally binding, and any breaches can lead to a civil lawsuit by the injured party.
What Can a Separation Agreement Determine?
Although each couple chooses what to include in their separation agreement, some topics arise in nearly all documents. We’ll examine these specific issues below.
The main issue a separation agreement addresses is the matter of property and its division. In other words, the document stipulates which spouse will remain in the marital house, as well as how to divide furniture and other property-related assets.
Keep in mind that the agreement only becomes effective once one of the spouses leaves the marital home, making the separation official. For instance, parties in North Carolina frequently believe that the separation period can begin even while they still live together, but that is not the case.
The separation agreement outlines how personal possessions will be distributed and confirms the ownership of specific assets. Generally speaking, all items can be included in this category — household appliances, books, cash, and even kitchen utensils. Thus, it’s important to add all possessions that could be a point of contention and ensure the boundaries are clearly established.
As a rule, the party leaving the marital home should take all their personal possessions with them. If necessary, the agreement can include a date by which the removal must be completed.
Frequently, employers provide health insurance covering an employee and their spouse. As a result, many married couples share the same plan, which they can continue to do even while separated. However, once they are officially divorced, the former spouses can no longer benefit from each other’s insurance.
Although the laws on health insurance coverage are clear, the separation period is slightly more ambiguous, allowing the parties to decide on the particulars. The spouses should determine whether they will continue to share the coverage and who will make the payments. Afterward, they should include the decision in their separation agreement.
If the couple owns vehicles, they must address the issue of ownership and distribution in the separation agreement. Additionally, if there are any loans to pay or repairs to make, the agreement should also determine the responsible party.
Family pets are often a sensitive subject and the root of many issues that arise during separation and divorce. To avoid potential arguments, add a provision regarding pet ownership to your agreement. If possible, you may even devise and include a visitation schedule for your pets. However, that is generally not advisable due to difficulties in enforcement.
If the couple shared any bank accounts or credit cards, the separation agreement must detail how they should be handled. Considering that both parties have access to the funds in the joint account, the best option is to close it and open separate ones. However, the agreement still needs to discuss how the available funds should be split between the spouses.
Final Thoughts
Even when both spouses have each other’s best interests at heart, it’s unlikely that the separation process will be entirely smooth. Ultimately, it is a delicate matter that requires the parties to compromise even when they rather wouldn’t. To avoid conflicts during the process, make sure to sign a separation agreement and cover all potential issues in the document.
