What is a separation agreement?

If your relationship breaks down, you may be able to sort out what to do with the property of the relationship in a friendly way with your partner. Alternatively, you may need assistance to reach an agreement. Your property settlement lawyer can help you negotiate an agreement with your partner.

If a settlement is reached it should be formalised. That can be done by consent orders made by the Federal Circuit and Family Court of Australia or by a binding financial agreement (separation agreement). A separation agreement provides finality so that neither party can make a future claim. It also provides exemption from stamp duty for assets transferred pursuant to the order or financial agreement.

People can enter into financial agreements before they are married (prenuptial agreement) or when they commence living together. They can enter into financial agreements during their marriage or relationship (i.e. while they are happily together).

Such financial agreements provide for what happens regarding the division of property should they separate. These financial agreements are binding (provided that they meet the conditions set out in the Family Law Act).

Related article: A step by step guide to obtaining a separation agreement.