18 August 2026
What is a Separation Agreement?
A Separation Agreement is a written agreement entered into by a couple who have decided to separate. It records the financial and practical arrangements that they have agreed following their separation and can provide clarity as to how their assets, liabilities, property and ongoing financial responsibilities are to be dealt with.
A Separation Agreement can address a wide range of matters including what happens to the family home, savings and investments, debts and liabilities, household expenses and ongoing financial support. It can provide both parties with much needed clarity and peace of mind during an uncertain time.
What is the difference between a Consent Order and a Separation Agreement?
A Consent Order is made by the court, usually following an agreement reached between divorcing spouses a as to how their financial claims should be resolved. Once approved and ‘sealed’ by a Judge, it is legally binding and can provide for a final resolution of the parties’ financial claims
By contrast, a Separation Agreement does not require the parties to be married as it is a private agreement and does not require them to have commenced divorce proceedings. It is not legally binding in the same way as a Consent Order.
However, a well-drafted Separation Agreement, can carry significant weight if either party later asks the court to determine financial matters following a divorce. In considering what weight should be given to the agreement, the court may take into account matters including whether both parties entered into it freely, whether there was appropriate financial disclosure, whether each party received independent legal advice and whether the agreement remains fair in the circumstances.
An Important Consideration
It is important to note, however, that a Separation Agreement cannot prevent either party from making a financial application to the court in the future. The court retains the power to make financial orders whereas a Separation Agreement does not necessarily bring the parties’ financial claims against one another to an end.
If financial proceedings are subsequently issued, the court retains the power to make orders as it consider appropriate. The existence of a Separation Agreement may be an important factor, but the court will consider all of the circumstance at that time.
This is why it is important for each party to seek independent legal advice and provide appropriate financial disclosure before entering into a Separation Agreement, to fully understand the implications, benefits and risks involved.
Who might consider a Separation Agreement?
- Parties who are not married, but who have cohabited for some time and share assets and financial responsibilities, although the legal framework applying to unmarried couples is different and specialist advice should be obtained.
- Spouses who plan to separate and live independently but do not wish to initiate divorce proceedings right away.
- Parties who for personal, religious or other reasons do not wish to divorce.
Contact Us
If you are considering a Separation Agreement and would like to receive legal advice, our experienced and approachable Family Law team are here to assist you.
Please get in touch to explore what options might be available to you.
