Separation Agreement

A Separation Agreement (sometimes referred to as a property settlement agreement or a divorce agreement) is a document which outlines the terms of a divorce or a legal separation. Typically, a Separation Agreement will cover such topics as:

  1. Maintenance (alimony)
  2. Division of marital property and debts
  3. Health insurance and payment of extraordinary medical expenses
  4. Child custody
  5. Child support
  6. Timesharing / visitation
  7. Allocation of attorney’s fees and court costs

Purpose/Necessity

If a Separation Agreement is not utilized, the marital issues it might otherwise cover will either be settled by default rules or must be resolved through litigation. For example, if there is no Separation Agreement and a parent who is paying child support dies, that parent’s estate must continue to pay the same amount in child support. See KRS 403.213(3). In many cases, this default rule – and others found in the Kentucky Revised Statutes – is not what the parties would have chosen on their own.

If the parties cannot agree, the issues must be litigated. The parties would have to present their claims for property division, maintenance, child support, etc. and the court would have to hold hearings and review evidence concerning these matters and make rulings based on the relevant statutes. A Separation Agreement allows the parties the flexibility to decide such issues on their own, thereby reducing legal fees, time spent in court, and the strain inherent in divorce litigation.

Other reasons to enter into a Separation Agreement include:

  1. The ability to specifically designate marital and non-marital property
  2. The potential for mutually beneficial tax planning
  3. The ability to incorporate the Agreement into the Decree of Dissolution or Legal Separation, so that its terms are as enforceable as those in the Decree

Frequently Asked Questions