DIY kits and why it is a bad idea.
DIY Separation Agreement: How to Save a Dime but Lose a Dollar When Separating in Ontario
Separation or divorce is a challenging and emotional time for everyone involved. For many people, the idea of handling their own separation or divorce can seem like a good way to save money. Why pay a lawyer, mediator, or financial advisor? You can just Google your way to a solution, but crafting a proper (not a DIY) separation agreement requires careful consideration.
Before you fill out generic questionnaires or print generic forms, take a moment to think. Is it worth saving a little money now? Using separation agreement templates might cost you more later. What seems fair now could lead to bigger expenses down the road.
Let’s look at why DIY separation kits and agreements found online for a few dollars (or free) may not save you money. We will explore the hidden costs of cutting corners in areas like child support, spousal support, and property division.
The Allure of DIY Separation Agreements
There is no denying that professional help of a family lawyer during a separation can be expensive. Some lawyers charge by the hour, mediators may bill hundreds per session, and financial planners often require a retainer. If your budget is already tight, the thought of shelling out thousands of dollars might feel unbearable.
Compare it with the DIY approach, which some may see as a reality. It is now easier to create a separation agreement on your own. There are many online templates available. You can also find self-help guides and YouTube tutorials to assist you. For some people, the appeal is not just saving money. It is also about feeling in control. They want to avoid the drama of involving others.
And in certain cases, DIY separation agreements can work. Couples without children or assets can often separate easily. If they have simple income arrangements and agree on everything, they might not need professional help. But for most people, separation is rarely that simple and require professional help with dispute resolution. And that is where the trouble begins.
The Hidden Risks of DIY Separation Agreements
While DIY separation agreements may seem like a way to save money, it often comes with hidden costs that can far outweigh the savings. Here are some of the most common pitfalls:
Non-Compliance with Local Legislation:
The laws about separation and separation agreements are complex. One-size-fits-all templates often do not fit your unique situation or local Ontario laws. Many DIY Separation Agreement websites are based in the United States. They do not follow the Family Law Act or other provincial laws in Canada.
They are not subject to the local Ontario Law Society governing legal professionals here. They might not have included the local Ontario legal rules. These rules are important for making sure your DIY Separation Agreement is valid and enforceable.
Unfair Settlements:
Another risk of a DIY Separation Agreement is to end up with an unfair settlement. Without professional help, it’s easy to miss important details when making a separation agreement in Ontario.
- The true value of assets (or not even having knowledge about the fact that the opposing party has them), including pensions, investments, and real estate.
- Future financial needs, such as entitlement to spousal support or child support. There are many nuances surrounding the issue of entitlement and amount of spousal support. Canada in general and Ontario in particular are somewhat unique in that regard as they have one of the more liberal regimes for spousal support in favour of recipients. Very often, recipients threaten payors by claiming they owe more than they actually do, or payors attempt to convince recipients that they have no entitlement to any support.
Lack of Clarity for the Future:
A well-drafted separation agreement is not just about dividing assets; it is also about providing clarity and stability for the future. DIY separation agreements often fail to anticipate potential disputes or changes in circumstances. For example:
- What happens if one party’s financial situation changes?
- How will parents handle decisions about parenting or custody (now called decision-making) if disagreements arise?
- Are there provisions for modifying the agreement if needed?
Professionals can help you think through these scenarios and create an agreement that minimizes the likelihood of future conflict. Without this foresight, DIY agreements can leave you vulnerable to ongoing disputes and legal battles.
Example of How a DIY Separation Agreement May Lead to Exorbitant Expenses
By way of just one example, the parties in Ontario are required to exchange financial information or waive that right. You may sign an agreement where the automatic clause states you have waived such a right.
On the one hand, this result may lead to a party who later finds out about hidden assets of the other party they did not know at the time of signing the agreement, to be unable to set aside such agreement.
On the other hand, if one party wants certainty in the future, they may still accept the risks of the other party taking them to court and having that DIY Separation Agreement set aside. In other words, you will spend way more on lawyers to litigate the matter in court compared to just having a separation agreement prepared and finalized with the lawyers.
At the end of the day, you may initially spend only a couple hundred dollars on a DIY Separation Agreement but eventually end up spending between $20,000 to $150,000 litigating the matter in court.
Compare Cost of a DIY and Lawyer-Assisted Separation Agreement
Contrary to the popular belief that having a lawyer assist with your divorce or separation is expensive, the cost of a separation agreement prepared by a lawyer is not too high and definitely is not comparable to the costs of being in court.
Usually, having a lawyer assist with a separation agreement can cost between $2,000 and $7,000. Consider splitting that cost with your former spouse and it makes the cost even more appealing.
The Bottom Line
While the DIY Separation Agreements might seem like an appealing way to save money, it often comes with significant risks and hidden costs. From non-compliance with local legislative requirements and unfair settlements to emotional stress and ongoing disputes, the price of cutting corners can far outweigh the initial savings.
Instead of focusing solely on saving a dime, consider the long-term value of professional guidance. Investing in the right support now can help you navigate the complexities of separation and divorce with confidence and set you up for a more stable, secure future. After all, saving a dollar today means little if it costs you peace of mind tomorrow.
If you’re considering a separation and want to ensure you’re making the best decision for your future, reach out to Progressive Legal Solutions today. Our team of experienced family law professionals can guide you through the process, providing the clarity and support you need to protect your interests. Contact us now for a consultation!