British Columbia Law

Separation Agreement in BC: Template & What to Include

By Andrew Liggett, Sea to Sky Law, New Westminster, BC

A separation agreement (also called a settlement agreement) is a written contract between spouses that settles all issues arising from their separation or divorce. It is far less expensive and faster than going to court - and it gives both spouses far more control over the outcome.

What a separation agreement covers

A comprehensive separation agreement addresses:

Property division - who gets the family home, vehicles, investments, retirement savings, and business interests
Spousal support - the amount (if any), duration, and review provisions
Child custody and parenting time - where children live, parenting schedules, and decision-making authority
Child support - monthly amount based on federal guidelines, plus provisions for post-secondary education and special expenses
Debt allocation - who is responsible for mortgages, credit card debt, loans, and other liabilities
Insurance - life insurance on the support payer to protect the receiving spouse and children
Dispute resolution - what happens if disagreements arise later (arbitration, mediation, or court)

Why a separation agreement is better than court

• Control - You decide the outcome, not a judge.

• Privacy - Court proceedings are public; a settlement is confidential.

• Cost - A negotiated agreement costs a fraction of a trial.

• Speed - Settlement can take weeks or months; litigation often takes years.

• Certainty - You know the result; litigation is uncertain until the judgment is delivered.

• Relationship preservation - Negotiating an agreement (with lawyer or mediator support) is far less adversarial than court battles.

Key sections of a BC separation agreement

1. Identification and background

Names, dates of marriage and separation, and jurisdiction (BC is the appropriate jurisdiction if either spouse lives in BC or if the children live in BC).

2. Property and debt

• Schedule each significant asset (home, vehicle, investments, business, pensions, etc.)

• Assign each asset to one spouse or agree on how to divide/sell it

• Do the same for debts - mortgages, credit cards, loans

• Include a "hold harmless" clause so each spouse indemnifies the other from their assigned debts

3. Family home

• Specify whether one spouse retains the home or if it will be sold

• Outline the timeline for sale or buyout

• Address the mortgage and how it will be paid or refinanced

• Clarify who pays property taxes, utilities, and maintenance during the interim period

4. Spousal support

• State the monthly amount (or "no spousal support is payable")

• Specify the duration (3 years, until age 65, indefinite, etc.)

• Include whether support terminates if the receiving spouse remarries or cohabits in a new partnership

• Build in a review clause if income changes significantly

5. Child custody and parenting

• Create a detailed parenting schedule (weekly, with holiday and summer provisions)

• Specify who has parental responsibility for major decisions (health, education, religion)

• Address relocation - can either parent move with the child?

• Include communication provisions (how parents will stay in touch about the child's welfare)

6. Child support

• Calculate based on the federal Child Support Guidelines

• Adjust for shared parenting time if necessary

• Include provisions for special expenses (medical, dental, post-secondary, extracurriculars)

• Specify who carries medical and dental insurance

7. Life insurance

• Require the support payer to maintain life insurance in an amount equal to outstanding support obligations

• Name the ex-spouse or trust (for the children) as beneficiary

8. Dispute resolution

Address what happens if disagreements arise:

• Mediation first (before court)

• Arbitration for certain disputes

• Court as a last resort

9. Severability and governing law

• Confirm that BC law governs the agreement

• State that if one clause is invalid, the rest of the agreement remains in force

10. Signatures and acknowledgment

• Both spouses sign in the presence of a witness (or notary, depending on your preference)

• Each spouse should sign an independent legal advice certificate, confirming they have had the opportunity to obtain legal advice before signing

Common mistakes in separation agreements

• Vague language - "fair and reasonable" child support is not enforceable. Use specific amounts and formulas.

• Ignoring tax implications - Property transfers and spousal support have tax consequences; make sure you understand them.

• No life insurance requirement - If support payments depend on one spouse's income, life insurance is crucial.

• Failing to address the matrimonial home fully - Incomplete clarity on the home often leads to later disputes.

• No provision for changing circumstances - Include language allowing review if income changes materially.

When you need a lawyer

You should have a lawyer review any separation agreement before you sign it - even if the agreement is fair on its face. A lawyer will:

• Check that all your assets and debts have been accounted for

• Review the tax implications

• Ensure the parenting and support provisions comply with BC law

• Identify any ambiguities that could lead to disputes later

• Ensure the agreement is properly executed so it will be enforceable

At Sea to Sky Law™

We help clients negotiate, draft, and review separation agreements. Whether you and your ex are on good terms or the separation is contentious, we can guide you through the process and protect your interests - and your children's.

This article is for general information only and does not constitute legal advice.

This article is general information, not legal or tax advice. Meetings are by appointment only, by phone or secure video.