What is a Separation Agreement?

A Separation Agreement is a permanent contract between spouses, generally negotiated with assistance of independent counsel, which resolves all issues related to the dissolution of the marriage.

Provisions of a Separation Agreement may include the date of separation, child custody, visitation, child support, alimony, college contributions, use and possession of the family home, disposition of the family home, division of assets and liabilities, health insurance, life insurance, waiver of inheritance rights, attorney’s fees and costs.

It is important to consider the tax consequences of a proposed Separation Agreement, such as the after-tax effect of alimony and child support, and to seek legal advice prior to signing a Separation Agreement.