Separation sometimes fits a married couple’s needs better than divorce. For example, religious, financial, or practical reasons might push a couple to separate rather than divorce.
However, the terms of a separation must be clear. Marriage is a legal relationship, and anything left unaddressed in a separation agreement could create unintended and unwanted legal obligations.
5 Issues to Address in a Separation Agreement
A separation agreement is a contract between separated spouses to address their financial and legal relationship. Michigan does not use the term “legal separation” to describe a situation where spouses live separately but remain married. However, it does have a procedure for separate maintenance that is similar to legal separation in other states.
Separate maintenance is a court procedure in which a judge will review and approve the separation agreement. Couples can also enter into an informal separation in which they simply agree upon the terms of their separation without court approval. In either case, the separation agreement should address the following issues:
1. Property Division
The agreement should address how the currently owned property should be divided. Some types of property automatically belong to one spouse, including property acquired before the marriage or any property acquired using separate funds, like an inheritance.
However, anything acquired during the marriage using marital funds belongs to both spouses, even if only one spouse uses it.
For example, a car purchased during the marriage belongs to both spouses, even if only one spouse makes payments on it and uses it to commute to work. The separation agreement would likely give the car to the spouse who makes the payments and drives it.
The agreement should also address property purchased in the future. As a married couple, any future acquisitions would belong to the marriage rather than one spouse. The agreement should address how the ownership of these future-acquired assets will be handled.
2. Division of Debts and Other Financial Obligations
A separation agreement should also address the division of debts and other financial obligations. Like assets, debts acquired during the marriage for marital property often fall on both spouses. The agreement should address who will pay past and future debts incurred.
3. Spousal Support
Spousal support is not automatic in a separation agreement. However, if a spouse needs financial help to supplement their financial situation, they should address it while negotiating and drafting the agreement.
Spousal support can be temporary or ongoing. For example, if a spouse needs to attend school to earn the wages necessary to support themselves, they can seek short-term spousal support.
Conversely, if the spouses separate late in life and one spouse has health issues that prevent them from working, they might seek spousal support for the rest of their life.
4. Child Support
When couples with children separate, they must reach an agreement that ensures their child or children have financial support. The agreement should address who pays for which child-related expenses and whether one parent will compensate the other for a share of the expenses the parent incurs.
5. Child Living Arrangements
The separation agreement should cover the living arrangements for any children. The schedule should describe where the child lives on school days, weekends, and school breaks.
Contact Gucciardo Family Law to Discuss Your Separation Agreement
Separation agreements are not templates. Instead, you should tailor your agreement to your unique circumstances. Contact us to discuss your marital separation and how we can assist you in negotiating fair terms in your separation agreement.
