Relationship Property – Do We Need a Separation Agreement?
One of the most common questions we hear from new clients is, “If we both agree on how to divide everything, why do we need lawyers?”
When couples separate or make arrangements about how their property will be divided, involving lawyers is not just helpful, it is essential if you want the agreement to be valid and enforceable. This is governed by the Property (Relationships) Act 1976 (the Act).
These agreements can be entered into during a relationship, after separation or in anticipation of future changes. However, the legislation imposes strict requirements on how they must be prepared and signed. This is where legal advice becomes critical.
Most people value certainty. So once the process is explained, they understand the importance of having a separation agreement that will stand up at law, so they can move forward with the next stage of their lives.
For a relationship property separation agreement to be binding, it must be:
- in writing,
- signed by both parties, and
- each party must receive independent legal advice about its effects and implications.
- Each lawyer must also witness their client’s signature and certify that advice has been given. This certification is not a mere formality. Without it, the agreement could be void and unenforceable.
Courts have the power to set aside agreements under the Act where serious injustice would result. Particularly if a party did not understand the effect of the agreement. Or was under undue pressure to sign it. For that reason, the process followed before signing is closely scrutinised.
In short, lawyers are required in relationship property matters not just because the law says so. But because the stakes are significant. A properly advised and carefully prepared separation agreement provides certainty, reduces risk and protects the assets you have worked hard to build from future disputes.
