What is a divorce settlement and what should a separation agreement include in Ontario?

A divorce settlement is the agreement you and your spouse reach on the issues that come with ending a marriage, such as parenting, support and property; a separation agreement is the written version of those terms. The divorce itself is still granted by a court, and the court must be satisfied that reasonable arrangements have been made to support any children of the marriage.

A good agreement usually covers parenting, child and spousal support, how property is divided and what happens to the home. For property, the spouse with the smaller net family property is generally entitled to one-half of the difference between the two, although a court can award more or less than half if equalizing would be unconscionable, and some excluded property is left out. If only one spouse has an interest in the home, the other spouse's right of possession ends on divorce unless a separation agreement or court order says otherwise.

If you used mediation, each party should get advice from a different lawyer before signing so the agreement is legally binding. The terms then feed into the divorce documents, such as the affidavit, which must give the child support arrangements and financial information. Have a lawyer review the wording before you sign.