When a relationship ends, not every separation is complicated or contentious. You might already agree on who keeps the house, how your savings will be divided, who takes responsibility for certain debts and what happens to your other assets. If you’ve agreed on everything, it can be tempting to simply divide things up and move on. However, even when a separation is completely amicable, there are good reasons to formally document what you’ve agreed in a Relationship Property Agreement. What is a Relationship Property Agreement? A Relationship Property Agreement (RPA), sometimes referred to as a Separation Agreement, is entered into after a relationship has ended and records how the parties have agreed to divide their relationship property. This might include property, savings, investments, businesses, trusts and other assets and liabilities. An RPA allows you to agree on how your property will be divided rather than simply relying on the general relationship property division principles under the Property (Relationships) Act 1976. But We’ve Already Agreed on Everything – Do We Really Need One? A Separation Agreement isn’t mandatory, but having one in place can give both parties clarity about what has been agreed and help minimise the potential for disputes later. A verbal or informal understanding might feel sufficient when you’re getting along, but circumstances can change. Properly documenting your agreement provides a clear record of how you’ve chosen to deal with your relationship property following your separation. It’s important to remember that getting lawyers involved doesn’t mean turning an amicable separation into a dispute. If you’ve already reached an agreement, your lawyers can help you understand your respective legal positions and work towards properly documenting what you’ve decided. An RPA Gives You the Opportunity to Make Your Own Decisions The Property (Relationships) Act 1976 sets out principles governing how relationship property is divided when a couple separates, including the general principle of equal division. However, you might have good reasons for wanting to divide things differently. For example, equally dividing a particular asset may be impractical or disruptive. An established business is one example where simply selling an asset to divide its value may not be the outcome either party wants. An RPA gives separating couples the ability to negotiate and record the distribution they’ve agreed upon. You’ll Both Know Where You Stand One of the benefits of formally documenting your separation is certainty. As part of preparing an RPA, both parties provide full disclosure of their assets and liabilities. This could include bank and mortgage statements, property valuations, investments, vehicle valuations or company accounts, depending on your circumstances. This information allows both parties and their lawyers to properly understand the financial position before the agreement is signed. Once everything is on the table, you can make informed decisions about the agreement you’re entering into and move forward with a much clearer understanding of where you both stand. Why Do We Need Separate Lawyers? Yes – for a Relationship Property Agreement, each person needs independent legal advice. Your lawyer’s role is to explain your legal position, what you may be entitled to under the Property (Relationships) Act and what signing the proposed agreement will mean for you. Your former partner will have their own lawyer doing the same for them. This isn’t about encouraging either of you to change your mind or creating conflict where there isn’t any. It’s about making sure both people understand what they’re agreeing to before the agreement is finalised. If you’ve managed to separate on good terms and agree on how your property should be divided, that’s a great place to start. A Relationship Property Agreement can help you turn that understanding into a properly documented agreement, giving you greater clarity and certainty as you both move forward. If you’ve recently separated, even if you’ve already agreed on everything, talk to our Family Law team about whether a Relationship Property Agreement is right for your situation.
