On 3rd May 2021, Bill and Melinda Gates took to Twitter to announce their divorce. Following 27 years of marriage and three children, the billionaire couple stated that "after a great deal of thought and a lot of work on our relationship, we have made the decision to end our marriage. We no longer believe we can grow together as a couple."
Naturally, divorce proceedings involve the dividing of assets. As Bill Gates is the fourth wealthiest man in the world and with the couple having an estimated joint worth of $130bn, the dividing of their assets would certainly be no mean feat. However, when US media outlets were offered access to the couple’s petition for divorce, it became public knowledge that a separation agreement had been completed ahead of the final divorce filing. While the documentation remains confidential, it’s said that this separation agreement has enabled the couple to split their financial assets in an amicable way.
With so many high-profile divorce cases making the headlines, often as a result of tense disagreements and dramatic situations, it’s no wonder why many couples worry about how to kickstart their own divorce proceedings. Separation agreements are available within the UK and are fast becoming a popular, straightforward way of ensuring assets are divided fairly and with the approval of both parties.
Here you can find out more about separation agreements, why many couples like Bill and Melinda Gates opt for them, and how they are instigated here in the UK.
What is a separation agreement?
A separation agreement is a written agreement that is often used to determine the financial arrangements for couples who wish to part ways. This agreement can be used ahead of divorce proceedings, by couples who are separated but yet to decide whether they want to divorce officially, and by couples who are unable to divorce until further down the line.
The details of a separation agreement are determined by the couple and their solicitors. They will typically cover decisions about matters such as how to manage household bills, living arrangements, outstanding debts, savings and investments, furniture, child maintenance and childcare going forward
Couples who choose to create a separation agreement should aim to have one prepared to present to the court when the time comes to kickstart divorce proceedings. This agreement should be one which both parties are happy with for the long-term.
In the case of Bill and Melinda Gates, it appears as though they worked with their lawyers to draft a separation agreement they were both happy with, before submitting their final divorce petition.
How do separation agreements work in the UK?
Separation agreements must be implemented with the help of a qualified, unbiased third party. A specialist solicitor will work with both individuals to understand their wants and needs from the agreement, before drafting a document that sets out their joint decisions.
Separation agreements are not legally binding, however, they do have a very strong level of influence in court. If the agreement has been put in place consensually and with the assistance of an independent legal adviser, then it would be extremely difficult to argue against points within the agreement at a later date, such as during official divorce proceedings.
Of course, there are some exceptions. A separation agreement may have less of an influence if there is a reasonable need to change the terms of the agreement at a later date, for example concerning child support or child maintenance.
The advantages of a separation agreement
Just like Bill and Miranda Gates, many couples find a separation agreement to be the ideal first step towards an amicable break up. It’s also a useful middle ground for couples who simply need some time apart from one another while they consider their future.
A separation agreement puts into writing that the two of you have made the decision to no longer live together. This prevents any argument that one partner has deserted the other during future divorce proceedings.
A separation agreement will be tailored to each specific couple and their own circumstances, so the choice of what to include is entirely up to them.
A written agreement can prevent unnecessary stress that can occur during a breakup, while providing clarity and a solid standing for if or when you decide to pursue divorce proceedings.
What to include in a separation agreement
Various points can be included in a separation agreement, covering everything from property to finances to children.
Factoring in property-related decisions into a separation agreement can determine whether or not an existing property will be sold, who will live there going forward, how much each party will contribute to the maintenance and mortgage, and what share of the property each party is entitled to.
The separation agreement can also determine who will be responsible for the repayment of loans and debts, household bills, general maintenance, as well as other essential payments such as school fees.
Finally, many separation agreements include decisions around children, such as who the children will live with and when they will be cared for by the other parent, which parent should receive tax credits and child benefits, and whether or not one parent should provide maintenance to the other.
Discuss a separation agreement with our financial arrangement solicitors
The thought of divorce can be extremely concerning and emotional too, so it’s completely understandable that many couples would like to establish some certainty at an early stage with a separation agreement.
Here at hpjv solicitors, our divorce financial settlement solicitors have helped many couples with their own separation agreements, offering advice, guidance and our years of experience to ensure they receive an agreement that works for them and for the courts as well.
For more information on separation agreements and divorce, you can speak to one of our family lawyers in Newport. Just give us a call or fill in our simple online enquiry form and a member of our team will be in touch shortly.
