Difference between revisions of "Agreements after Separation"

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===Children===
===Children===


Issues about parenting after separation are covered by the federal ''Divorce Act'' for married spouses and by the provincial ''Family Law Act'' for married spouses, unmarried spouses and other unmarried couples.
Issues about parenting after separation are covered by the federal ''Divorce Act'' for married spouses and by the provincial ''Family Law Act'' for married spouses, unmarried spouses and other unmarried couples, and other people who have an interest in the care of a child.


The ''Divorce Act'' uses some pretty old fashioned language to talk about children, ''custody'' and ''access''. The ''Family Law Act'' talks about people who are ''guardians'' STOPPPED
The ''Divorce Act'' uses some pretty old fashioned language to talk about children, ''custody'' and ''access''. The ''Family Law Act'' talks about people who are the ''guardians'' of a child, and have ''parental responsibiities'' and ''parenting time'', and people who are not guardians and have ''contact''.


====Custody====
====Custody and Access====


There are two basic types of custody available, sole custody and joint custody. Sole custody is fairly rare, and is usually only appropriate where the parties are constantly at each other's throats or where one party expects to be absent from the child's life. Joint custody is far more common than sole custody. In this situation, both parents are custodians of the children.
There are two basic types of custody available under the ''Divorce Act'', sole custody and joint custody. Sole custody is fairly rare, and is usually only appropriate where the parties are constantly at each other's throats or where one party expects to be absent from the child's life. Joint custody is far more common than sole custody. In this situation, both parents are custodians of the children and both have responsibility for making decisions about the children.


Joint custody has little to do with how much time the child spends with each parent. The child's time can be shared equally or almost equally, or the child can see a parent only on weekends, and the parents can still have joint custody.
Joint custody has little to do with how much time the child spends with each parent. The child's time can be shared equally or almost equally, or the child can see a parent only on weekends, and the parents can still have joint custody.


See the chapter Children > Custody for more information.
====Guardianship====


====Guardianship====
Under s. 39(1) of the ''Family Law Act'', a child's parents are usually the child's guardians as long as they have lived together during the child's life. These parents are guardians and don't need an order or an agreement to make them a guardain. A parent who never lived with his or her child isn't a guardian unless the parent "regularly cares" for the child.
 
Under s. 50, only a parent can become the guardian of a child through an agreement with all of the child's guardians. (Of course, the only parents who would need to become a guardian in this way, are parents who aren't guardians to begin with — a parent who never lived with the child and does not "regularly care" for the child.) Someone who is not a guardian can't be made a guardian by an agreement.
 
====Parental Responsibilities====


Like custody, guardianship can be held solely by one parent or held jointly by both. A parent who has sole guardianship of a child is entitled to make all sorts of decisions affecting the child's life without the necessity of seeking input from or getting the agreement of the other parent. Where the parties share joint guardianship of the child, they each have responsibility for managing the child's life, from the choice of the child's school, to the manner of the child's religious education, to selecting the child's medical treatment in case of illness.
Only a guardian can have parental responsibilities in respect of a child under the ''Family Law Act''. These are listed at s. 41:


Joint guardianship is the most common form of guardianship. Sole guardianship is usually only appropriate where:
<blockquote><tt>(a) making day-to-day decisions affecting the child and having day-to-day care, control and supervision of the child;</tt></blockquote>
<blockquote><tt>(b) making decisions respecting where the child will reside;</tt></blockquote>
<blockquote><tt>(c) making decisions respecting with whom the child will live and associate;</tt></blockquote>
<blockquote><tt>(d) making decisions respecting the child's education and participation in extracurricular activities, including the nature, extent and location;</tt></blockquote>
<blockquote><tt>(e) making decisions respecting the child's cultural, linguistic, religious and spiritual upbringing and heritage, including, if the child is an aboriginal child, the child's aboriginal identity;</tt></blockquote>
<blockquote><tt>(f) subject to section 17 of the Infants Act, giving, refusing or withdrawing consent to medical, dental and other health-related treatments for the child;</tt></blockquote>
<blockquote><tt>(g) applying for a passport, licence, permit, benefit, privilege or other thing for the child;</tt></blockquote>
<blockquote><tt>(h) giving, refusing or withdrawing consent for the child, if consent is required;</tt></blockquote>
<blockquote><tt>(i) receiving and responding to any notice that a parent or guardian is entitled or required by law to receive;</tt></blockquote>
<blockquote><tt>(j) requesting and receiving from third parties health, education or other information respecting the child;</tt></blockquote>
<blockquote><tt>(k) subject to any applicable provincial legislation,</tt></blockquote>
<blockquote><blockquote><tt>(i) starting, defending, compromising or settling any proceeding relating to the child, and</tt></blockquote></blockquote>
<blockquote><blockquote><tt>(ii) identifying, advancing and protecting the child's legal and financial interests;</tt></blockquote></blockquote>
<blockquote><tt>(l) exercising any other responsibilities reasonably necessary to nurture the child's development.</tt></blockquote>


a parent expects to be absent from a child's life;
Guardians can share one or more of these parental responsibilities, or one or more parental responsibilities can be allocated just to one parent, so that only that parent has responsibility for that issue.
a parent has absolutely no interest in raising his or her child or being a part of the child's life; or,
the parents simply can't get along well enough to talk civilly about the child.
When guardianship is shared, it is a good idea to spell out exactly how the parties will share their responsibilities in a little more detail than simply saying "Jane and John will share joint guardianship." The Joyce model and Horn model of joint guardianship, the two most common expanded definitions of joint guardianship, are described and available for download in Word format in the chapter Children > Guardianship.


Note that if nothing is spelled out in the agreement with respect to guardianship, the parent or parents who have custody of the child are assumed to also have guardianship of the child.
====Parenting Time and Contact====


====Access====
Parenting time and contact are both about the child's schedule, although parenting time is about a bit more than just the child's schedule. Only guardians have parenting time; people who aren't guardians have contact with a child.


Access can mean the child's general parenting schedule, although it is usually used to describe the parenting time of the parent with the least amount of time with the child. The terms of a parent's access can be very specific or, where the parties get along exceptionally well with one another, the terms can be as vague as "Jane will have liberal and generous access to the child."
The terms of a child's schedule can be very specific or, where the parties get along exceptionally well with one another, the terms can be as vague as "Jane will have liberal and generous access to the child."


If there has been a history of difficulty exercising access or there is even a smidgen of conflict between the parties, it can be terribly important to spell out access to avoid future arguments. The terms of access usually spell out when the parent will see the child on a week-to-week basis, such as "John will have the child from Friday at the end of school to the following Sunday at 7:00pm, every other week, plus each Wednesday from the end of school until 7:00pm." They can also take into account:
If there has been a history of difficulty exercising parenting time or contact, or there is even a smidgen of conflict between the parties, it can be important to spell out the child's schedule in more detail to avoid future arguments. The terms of the child's schedule usually spell out when the party will see the child on a week-to-week basis, such as "John will have the child from Friday at the end of school to the following Sunday at 7:00pm, every other week, plus each Wednesday from the end of school until 7:00pm." Children's schedules can also take into account:


the child's birthday;
#the child's birthday;
Mothers' Day and Fathers' Day;
#Mothers' Day and Fathers' Day;
the parents' birthdays;
#the parties' birthdays;
school and religious holidays;
#school and religious holidays;
extended access when there is a civic holiday or a professional development day at school;
#extended access when there is a civic holiday or a professional development day at school;
contact by telephone and computer, including email, instant messaging and video conferencing;
#communication by telephone and computer, including email, instant messaging and video conferencing;
responsibility for picking up and dropping off the child;
#responsibility for picking up and dropping off the child;
school events;
#school events;
the child's extracurricular activities; and,
#the child's extracurricular activities; and,
birthdays of the child's friends.
#birthdays of the child's friends.
See the chapter Children > Access for more information.


===Child Support===
===Child Support===


Child support is a monthly sum, paid by the parent who has the child for the least amount of time to the parent who has the child for the most amount of time, to defray the day to day living expenses of the child. The amount of child support which is paid is almost always dealt with by referring to the federal Child Support Guidelines, which sets out the amount of a parent's child support obligation in table format according to the number of children support is being paid for and the payor's income.
Child support is a monthly sum, paid by the parent who has the child for the least amount of time to the parent who has the child for the most amount of time, to defray the day-to-day living expenses of the child. The amount of child support that is paid is almost always dealt with by referring to the federal Child Support Guidelines, which sets out the amount of a parent's child support obligation in table format according to the number of children support is being paid for and the payor's income.


A good separation agreement will:
A good separation agreement will:


state the income of each parent at the time the agreement is made;
#state the income of each parent at the time the agreement is made;
state the monthly child support to be paid;
#state the monthly child support to be paid;
set up a system which requires the parties to exchange copies of their tax returns and Canada Revenue Agency notices of assessment each year or every other year;
#set up a system which requires the parties to exchange copies of their tax returns and Canada Revenue Agency notices of assessment each year or every other year;
provide for a review of child support if the payor's income rises or falls; and,
#provide for a review of child support if the payor's income rises or falls; and,
provide for the recalculation of the parties' shares of the cost of the child's special expenses if either party's income rises or falls.
#provide for the recalculation of the parties' shares of the cost of the child's special expenses if either party's income rises or falls.
The Guidelines are an extremely convenient way to calculate a party's child support obligations up to the point where the spouse paying support, the "payor," has access to the child for 39% or less of the time. Once the payor has 40% or more of the child's time, the Guidelines tables become less important, and child support is assessed based on, among other things, each party's income and the amount of expenses related to the child each party is paying. In the context of separation agreements, this allows for a little more flexibility in determining child support, but makes the annual exchange of financial information even more important.


See the section Child Support for more information. Child Support > The Guidelines has calculators for child support and children's special expenses.
The Guidelines are an extremely convenient way to calculate a party's child support obligations up to the point where the spouse paying support, the ''payor'', has access to the child for 39% or less of the time. Once the payor has 40% or more of the child's time, the Guidelines tables become less important, and child support is assessed based on, among other things, each party's income and the amount of expenses related to the child each party is paying. In the context of separation agreements, this allows for a little more flexibility in determining child support, but makes the annual exchange of financial information even more important.


===Spousal Support===
===Spousal Support===


Spousal support is paid by one party to the other to help defray the recipient's day to day living expenses. A separation agreement which provides for the payment of spousal support should be negotiated bearing in mind all of the things the court would have considered in making an order for spousal support. Of course, when a separation agreement is being drawn up, the amount of spousal support payable, if any at all, is the product of the parties' negotiations.
Spousal support is paid by one spouse to the other to help cover that person's day-to-day living expenses. A separation agreement which provides for the payment of spousal support should be negotiated bearing in mind all of the things the court would have considered in making an order for spousal support.
 
Typically, a separation agreement which provides for spousal support will include some means of limiting the length of time for which support will be payable. Such terms might include:
 
a fixed length of time over which support will be paid, after which the payor has no more responsibility to pay;
an indefinite amount of time that support will be paid, with one or more dates set when the question of spousal support can be reviewed;
a series of graduated payments, so that the recipient receives a declining amount of support as he or she re-enters the work force;
the termination of support if the recipient remarries or otherwise becomes supported by someone else;
a fixed lump-sum payment of support;
a mutual waiver of any entitlement to receive spousal support; or,
triggers that might result in an early termination of spousal support, such as the recipient's death or remarriage.
In some situations, of course, permanent support may well be required, especially if the relationship was lengthy or if the recipient is unlikely ever to become self-sufficient.


Some agreements also provide that no spousal support will be payable. If you are the spouse who would ordinarily be entitled to receive support, you must be confident that the agreement fair as it may prove very difficult to obtain support later on if your personal circumstances change.
Typically, a separation agreement which requires spousal support to be paid will include some means of limiting the length of time for which support will be payable. Such terms might include:


Calculating the amount of support to be paid used to depend almost wholly on the recipient's reasonable monthly needs and the payor's monthly disposable income. In January 2005, the federal Department of Justice issued the first draft of an academic paper that describes mathematical formulas to calculate how much support should be paid and for how long. This paper, the Spousal Support Advisory Guidelines, has been warmly received in British Columbia and is commonly used by lawyers and judges to calculate spousal support, whether the issue is being litigated, mediated or negotiated.
#a fixed length of time over which support will be paid, after which the payor will have no more responsibility to pay;
#an indefinite amount of time that support will be paid, with one or more dates set for spousal support to be reviewed;
#a series of graduated payments, so that the recipient receives a declining amount of support as he or she re-enters the work force;
#the termination of support if the recipient enters a new spousal relationship; or,
#the payment of support in a single, lump sum.


The major problem with the Advisory Guidelines is that the Department of Justice has thus far failed to make spousal support calculators available to the public, and you may want to consult a lawyer who has access to spousal support software to see what the formulas say in your case.
In some situations, of course, permanent support may be required, especially if the relationship was lengthy or if the recipient is unlikely ever to become self-sufficient because of illness, for example.


See the section Spousal Support for more information about spousal support in general. The chapter Spousal Support > The Advisory Guidelines talks about the Advisory Guidelines in more detail and has a link to a website where the paper can be downloaded.
Some agreements also provide that no spousal support will be payable. If you are the spouse who would ordinarily be entitled to receive support, you need to be pretty confident that the agreement is fair as it may be very difficult to get support later on if your personal circumstances change.


===The Division of Assets===
===The Division of Property and Debt===


The ways in which a separation agreement can deal with the division of family assets are virtually unlimited. Some spouses are willing to walk away from a relationship with only those assets held in their own names; in some circumstances, however, this would be grossly unfair and a division of some or all of the assets is required.
The ways that a separation agreement can deal with the division of family property and family debt are virtually unlimited. Under the ''Family Law Act'', each spouse is presumed to keep the property he or she brought into the relationship and share in the property bought during the relationship. The spouses are presumed to be each half responsible for any debt incurred during the relationship. However, you can make whatever other arrangements you want, as long as you both agree to those arrangements and they're reasonably fair.


Where assets are an issue, it's often helpful to exchange Financial Statements. A Financial Statement is a form set out in the Supreme Court Family Rules in which each party itemizes their income, assets, expenses and debts. This form can be extremely useful for each spouse to get a clear idea of the exact financial situation of the other before any property-related negotiations start. You can download a blank Financial Statement in Word format and an example of what the form looks like when it's filled out in the downloads segment of The Legal System > Starting an Action.
When the division of property and debt are issues, it's often helpful to exchange Financial Statements. A Financial Statement is a form set out in the Supreme Court Family Rules in which each party itemizes his or her income, assets, expenses and debts. This form can be very useful for each spouse to get a clear idea of the family's financial situation before negotiations start. You can download a blank Financial Statement in Word format, and an example of what the form looks like when it's filled out, in the _______ .


The ways that assets can be divided in separation agreements are almost limitless, and depend entirely on the circumstances of each party, the length of the relationship and whether the parties are married or unmarried. Some people take what they brought into the relationship and divide the things bought afterwards; some people sell everything and divide the proceeds; others allot certain assets to each spouse and equalize the value of what each is taking; some people divide their assets equally and others do not. Regardless of how the assets are divided, however, don't forget to account for shared debts and remember that pension plans and RRSPs are family assets that married spouses have an entitlement to!
A separation agreement should deal with how any debts will be dealt with. Separating couples typically pay out family debts by the sale of a shared asset, which is usually how the mortgage on the family home gets paid out, or they can allocate a different share of the family property to compensate for a family debt. When a debt won't be paid out, it's essential to do two things: allocate responsibility for the debt; and, provide that the party remaining responsible the debt will preserve the other party from any financial consequences of that debt.
 
Remember that the rules that apply to dividing assets between married couples do not apply to unmarried couples, who only have a presumptive interest in assets that they both own. What is fair for a married couple is unlikely to be fair for most unmarried couples, except perhaps for couples involved in very, very long relationships.
 
See the section Family Assets for more information.


===Other Issues===
===Other Issues===


Arrangements for the care and control of children, the payment of support and the division of family assets are the most common issues that come up in family law. There are a whole host of other issues which couples may have to deal with, including some that can only be dealt with in separation agreements.
Arrangements for the care of children, the payment of support and the division of family property and family debts are the most common issues that come up in family law. There are a whole host of other issues which couples may have to deal with, including some that can only be dealt with in separation agreements.


====The Parties' Future Relationship====
====The Parties' Future Relationship with Each Other====


Most separation agreements include a whole section devoted to describing how the parties will deal with each other once the agreement is executed. Typically, this portion of an agreement requires the parties, among other things, to:
Most separation agreements include a whole section devoted to describing how the parties will deal with each other once the agreement is executed. Typically, this portion of an agreement requires the parties, among other things, to:


not incur debts in the name of the other party;
#not incur debts in the name of the other party;
not interfere with the personal life of the other party, including interfering with the other party's relationships with his or her parents, family, friends and future partners; and,
#not interfere with the personal life of the other party, including interfering with the other party's relationships with his or her parents, family, friends and future partners; and,
not molest, harass or annoy the other party.
#not molest, harass or annoy the other party.
Some separation agreements will also describe what will happen if the parties reconcile with each other. Most often an agreement will simply say that it becomes a marriage agreement or a cohabitation agreement if the parties reconcile and that it will not cease to be in effect simply because of the reconciliation.
 
Some separation agreements will also describe what will happen if the parties reconcile with each other. Most often an agreement will simply say that it becomes a marriage agreement or a cohabitation agreement if the parties reconcile, and that it will not cease to be in effect simply because of the reconciliation.


====Life Insurance====
====Life Insurance====
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If you have even the slightest doubt that the other party hasn't been entirely forthcoming about the extent of his or her assets, a term governing undisclosed assets can be important. These sorts of terms usually provide that:
If you have even the slightest doubt that the other party hasn't been entirely forthcoming about the extent of his or her assets, a term governing undisclosed assets can be important. These sorts of terms usually provide that:


any property that wasn't disclosed when the agreement was executed will automatically be deemed to be owned equally by both parties;
#any property that wasn't disclosed when the agreement was executed will automatically be deemed to be owned equally by both parties;
the party that didn't disclose the asset will have to give the other party one-half of the asset's value; and,
#the party that didn't disclose the asset will have to give the other party one-half of the asset's value; and,
the party that didn't disclose the asset will have to pay the costs the other party incurred in finding the asset, plus a financial penalty.
#the party that didn't disclose the asset will have to pay the expenses the other party incurred in finding the asset, plus a financial penalty.
4. Family Debts
A separation agreement should deal with how the parties' debts will be dealt with, including debts that are owed only by one party. Separating couples typically pay out shared debts by the sale of a shared asset, which is usually how the mortgage on the family home gets paid out, or they can allocate a different share of the family assets to compensate for a debt.
 
When a debt won't be paid out, it is essential to do two things: allocate responsibility for the debt; and, provide that the party keeping the debt will preserve the other party from any financial consequences of that debt.


==The Effect of Reconciliation==
==The Effect of Reconciliation==