An equalisation agreement is a legal document that is used to split the assets and liabilities of a couple during a divorce. This agreement aims to ensure that the parties receive a fair and equitable share of the property.
In most cases, couples who are going through a divorce have acquired assets over the years, including properties, investments, and savings. During a divorce, these assets are usually divided between the two parties. However, sometimes the division is not equal, and one party may end up with more assets than the other.
To ensure fairness, an equalisation agreement is used to make sure that each party gets an equal share of the assets. This means that the couple will have to calculate the value of their assets and liabilities and then split them equally.
It is essential to note that an equalisation agreement is not the same as a prenuptial agreement. A prenuptial agreement is a document that is signed by a couple before getting married, and it outlines how their assets and liabilities will be divided in case of a divorce. An equalisation agreement, on the other hand, is signed during the divorce proceedings.
An equalisation agreement can cover all assets and liabilities that the couple has acquired during the marriage, including bank accounts, investments, properties, and debts. It can also cover any gifts or inheritances that one party may have received during the marriage.
The process of drafting an equalisation agreement can be complicated, and it is advisable to seek the services of a lawyer. The lawyer can help the couple calculate the value of their assets and liabilities and ensure that the agreement is fair to both parties.
In conclusion, an equalisation agreement is a legal document that is used to split the assets and liabilities of a couple during a divorce. It helps to ensure that the parties receive a fair and equitable share of the property. If you are going through a divorce, it is essential to seek the services of a lawyer who can help you draft an equalisation agreement that is fair and legally binding.