Understanding the Importance of Key Provisions
In the conclusion of your Separation Agreement, there are a few key provisions that are included towards the end of your agreement. In this article we explain why these provisions are so important.
Dispute resolution: choosing a process
You will be asked: "What dispute resolution process will you use if a dispute arises?" so that you have a clear plan in place when you both get stuck in conflict or disagreement.
The most common process people choose is mediation. It's generally seen as the first collaborative step towards finding a resolution before needing to resolve conflict in court. Choosing an alternative process to court helps prevent prolonged conflict and encourages the resolution of disagreements outside of court β saving time and reducing emotional (and financial) strain on all parties.
Having a alternative process to litigation in place helps separated spouses maintain cooperation and preserve a collaborative relationship between the parties, which is crucial for ongoing co-parenting or cooperation. It also minimizes the need for judicial intervention, allowing parties to have more control over the outcome.
Acknowledgements: Independent Legal Advice (ILA)
As a part of the acknowledgements section, the agreement outlines whether you or not you chose to get independent legal advice β and if you do, a Certificate of Independent Legal Advice will be attached to your agreement, certifying that you received independent legal advice.
When you choose to obtain independent legal advice, which means you took your Separation Agreement to your lawyer who reviewed the agreement with your rights and responsibilities in mind, it ensures spouses made informed decisions. This means each party has had access to legal counsel to help them understand their rights and obligations before signing the agreement.
Obtaining independent legal advice also prevents misunderstandings and helps clarify complex legal terms and the consequences of the agreement, reducing the likelihood of future disputes. It also protects individual interests and ensures both parties are fully aware of their legal standing and are protected from potential exploitation or unfair terms.
How long you have to execute the terms of the agreement
Many parts of your agreement will be performed or paid 'when the agreement is signed'. This is a defined term. You get to choose what it means. Typically it means 'within 30 days of the agreement being signed' but you may need more time and can choose 45, 60, 90 days, etc.
Disclosure and compensation threshold
In every Separation Agreement, there is provision for what happens if either spouse fails to disclose an asset. The threshold amount means that if your Agreement leaves out an asset over a certain amount (say, $1,000.00, which is most common but you can choose any amount) the spouse who owns it will have to disclose the details and compensate the other with a payment worth one-half of the value of the undisclosed asset.
This provision promotes transparency, ensuring both parties are fully aware of any significant financial matters or obligations that may impact the agreement. It also sets a clear threshold for when financial disclosures are not fully met.
Who will apply for divorce?
It is common for spouses who negotiate agreements together to apply jointly for divorce once they have a Separation Agreement signed. Many couples bargain on this item, though, and can offer to take on the responsibility of filing and paying for the divorce application.
Conclusion
You will also find other statements towards the end of your agreement that are standard clauses for Separation Agreements. These are all common important provisions to include towards the end of your agreement to ensure clarity and that you've both entered into a fair agreement together.
