Separation and Property Settlement Agreements

The State of North Carolina does not require any specific paperwork to be filed in order to be separated. However, when parties decide to separate, it is beneficial to have a legal contract in place that formalizes the separation. These contracts are commonly known as separation agreements. A separation agreement may simply acknowledge the parties’ intent to live separate and apart. It may also set forth various provisions such as a free trader clause, which allows a party the right to buy or sell real estate without the other party’s knowledge or consent, and a mutual waiver of the right to inherit from one another. Additionally, separation agreements are commonly used to formalize mutually agreed upon terms for settlement.

If parties have reached a resolution regarding terms of alimony, child custody, child support, property division, responsibility for joint debts, and any other issues arising out of the marriage, these terms can be incorporated into the agreement. Settlement of disputed issues is generally preferable to litigation. If you and your spouse can agree to the terms of your separation and property division, then a separation and property settlement agreement may be the best option for you.

What to Consider:

  • Legally Binding:

    Once signed and executed (often with notarization), these agreements are legally enforceable contracts. 

  • Contents:

    They can address a wide range of issues, including:

    • Property Division: How assets (real estate, personal property, financial accounts, etc.) will be divided. 
    • Spousal Support: Whether one spouse will provide financial support to the other. 
    • Child-related Matters: Custody, visitation, and child support arrangements. 
    • Debt Division: How marital debts will be allocated.

Benefits:

  • Avoids Litigation: Can help resolve issues outside of court, potentially saving time and money. 
  • Clarity and Certainty: Provides a clear framework for the separation, reducing ambiguity. 
  • Flexibility: Allows couples to customize the agreement to their specific circumstances. 

Considerations:

  • Legal Advice: It is crucial to seek legal advice to ensure the agreement is fair, comprehensive, and enforceable. 
  • Full Disclosure: Both parties should fully disclose all assets and debts to ensure a fair agreement. 
  • Modification: Agreements can be modified, but typically require a new written agreement.