How Much Does A Separation Agreement Cost In Ontario?

When two people live together, their lives become intertwined in many ways. They share a home and the expenses that go along with it. They might have joint bank accounts or investments, and they may be named on each other’s’ insurance policies. In some cases, they co-own pets, or they have children together.

This is all well and good for couples who are happy together, but what happens if the two people involved decide to part company? Ending a long-term cohabiting relationship is more complicated than packing a bag and leaving: the couple has to decide how to unmesh various aspects of their lives. This is done through a separation agreement that details what will happen to property, bank accounts, pets, and custody arrangements for children.

Inevitably, this process comes at a cost: the only way to ensure that a separation agreement is fair to both parties is for lawyers on both sides to review it. For people going through a separation, the thought of legal fees may seem daunting. Using the services of a family mediator can make the process shorter, and therefore less expensive.

What Is A Separation Agreement?

A separation agreement is a legally enforceable contract that lays out the terms of a separation. It is not the same as a divorce order: a separation agreement does not lead to dissolution of a marriage, and the couple does not have to be legally married in order to get one. It is a tool for common-law couples who are separating, and for married couples who want to separate but need more time before deciding whether or not to get a divorce.

Although the separation agreement is not a requirement for couples who are separating, it can make life easier for everyone concerned. Having an agreement in place gives each person some guidelines for moving forward. You can navigate the emotional stress of the breakup without having to worry about how the bills will be paid or when you will have the kids.

It is also a handy tool to refer to if there is any confusion in the future. Should questions arise about access to the children’s school records or any investments you shared with your partner, you will be able to remind yourselves of what you signed off on. For this reason, it is helpful for separation agreements to be as detailed and all-encompassing as possible.

Is A Separation Agreement Expensive?

The short answer is, it depends. Every couple is different: the circumstances surrounding the separation are unique, and the complexity varies from case to case. A couple with children and heavily enmeshed finances will pay more for a separation agreement than a child-free couple who never maintained a joint bank account.

Some factors that affect the complexity of the agreement – and therefore the cost – include the following:

• Whether you are selling or transferring the title of your home (note that if either of you applies for a new mortgage, the lending institution is likely to require a separation agreement that lays out any support payments that will be made)
• What joint property you have, including real estate, investments, and bank accounts
• Any debts you have incurred together, such as credit card debt, car loans, and mortgages
• Whether you have minor children: the agreement will need to specify how much time the children will spend with each parent, any child support payments that will be made, whether decisions regarding the children can be made without consulting the other parent, and who has access to medical and school records
• Whether you have pets – if so, you will have to decide who the pets will live with and whether the other person will have access to see them
• Whether spousal support will be paid, and the conditions surrounding that
• Whether you or your partner will have your children listed as beneficiaries on life insurance policies and medical/dental insurance

The Cheapest Option Isn’t the Best

A quick Google search will show you that there are plenty of separation agreement templates available online for less than $50. While it may be tempting to simply download and complete one of these, this is not an advisable course of action. Because this agreement is legally binding, it can be challenged in court. If it is determined that one of you did not have proper legal advice while drafting the agreement, the court can set it aside and make changes. You do not have control over this process: it is better to formulate the agreement with proper legal advice in the first place.

Legal Fees Are Inevitable

Your separation agreement should include a certificate of Independent Legal Advice stating that each person received full, accurate information from the other, and that the agreement satisfies the rules of contract law. It is therefore inevitable that some legal fees will be incurred for both parties. These fees will be relatively low if all points in the agreement are uncontested. If you or the other person find it difficult to agree on finances, child access and custody, or what to do with your home, those fees are likely to rise quite sharply.

Reduce The Cost Through Family Mediation

It may seem counterintuitive that an extra person in the mix would make things less expensive, but it very often proves to be the case. A family mediator’s job is to facilitate cooperation and calm negotiation, and the cost of this is offset by the resulting reduction in legal fees.

At Separate Simply, we will sit down with you and the person you are separating from, and we will help you come to agreements about all of the factors that are impacted by your separation. Our goal is for both of you to walk away happy, and for any children to have their best interests taken care of.

Your lawyers will not have to spend time trying to get you to come to a consensus, but they will be included in the process of ensuring that the separation agreement stands up to contract law, and that there is no duress, misrepresentation, or undue influence.