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Separation Agreement

Clearly define separation terms and responsibilities using this Separation Agreement Template.

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Separation Agreement

Separation Agreement


This Separation Agreement ("Agreement") is entered into on [Date], by and between:

Employer: [Company Name]
Address: [Company Address]

and

Employee: [Full Name]
Address: [Employee Address]

Together referred to as the "Parties."



1. Termination of Employment

The Employee's employment with the Employer shall officially end on [Termination Date] (the "Separation Date").


2. Final Compensation

The Employee shall receive:

  • Final paycheck including all earned but unpaid wages through the Separation Date

  • Payment for unused vacation or paid time off (if applicable)

  • Any additional compensation as agreed herein


3. Severance Pay

☐ The Employee shall receive a severance package of $[Amount], payable in [lump sum / installments]
☐ No severance pay shall be provided

(Adjust or delete based on the situation.)


4. Benefits

All benefits (e.g., health insurance, retirement contributions) will terminate on [Date], unless extended through COBRA or another arrangement.


5. Return of Company Property

The Employee agrees to return all company-owned property, including but not limited to:

  • Laptop or other electronic equipment

  • ID badges and access cards

  • Documents and confidential materials
    Return shall be completed by [Date].


6. Confidentiality

The Employee agrees to maintain the confidentiality of all proprietary and sensitive information obtained during employment, in accordance with any prior confidentiality agreements.


7. Non-Disparagement

The Parties agree not to make any false or damaging statements about each other publicly or privately.


8. Release of Claims

In exchange for the benefits provided in this Agreement, the Employee releases the Employer from any and all claims related to the employment relationship or its termination.


9. Non-Solicitation and Non-Compete (if applicable)

☐ The Employee agrees not to solicit clients or employees of the Company for a period of [X] months
☐ The Employee agrees not to engage in competing business within [Region] for [X] months

(Include only if such clauses apply and are legally enforceable in your jurisdiction.)


10. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [State/Country].


11. Entire Agreement

This Agreement represents the full and complete understanding between the Parties and supersedes all prior discussions or agreements related to the subject matter.


IN WITNESS WHEREOF, the Parties have executed this Separation Agreement as of the date first written above.


Employer Signature
Name:
Title:
Date:


Employee Signature
Name:
Date:


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Separation Agreement

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For quick answers, scroll below to see the FAQ.

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For quick answers, scroll below to see the FAQ.

SEPARATION AGREEMENT FAQ


What is a Separation Agreement?

A separation agreement is a legally binding document that sets out the terms and conditions agreed upon by spouses who have decided to live apart. It typically covers the division of assets and debts, spousal support, child custody and visitation arrangements, child support obligations, and any other responsibilities or agreements between the parties. While it is not the same as a divorce decree, it formalizes the separation and provides a clear framework for how matters will be handled during the period of separation.


Why do you need a Separation Agreement?

You need a separation agreement to clearly define each spouse’s rights and responsibilities during the separation period, helping to avoid misunderstandings and disputes. It provides legal protection for both parties and can simplify any future divorce proceedings by resolving key issues in advance. Courts often use these agreements as evidence of the parties’ intentions and arrangements, which can help reduce the emotional and financial strain of legal separation or divorce.


When should you use a Separation Agreement?

You should use a separation agreement when you and your spouse decide to live apart but are not yet ready—or have not yet decided—to divorce. It is also commonly used as a transitional arrangement in preparation for divorce, ensuring clarity on matters such as finances, childcare, and living arrangements during the interim period.


How to write a Separation Agreement?

To create a valid separation agreement, clearly identify both spouses and list all agreed-upon terms regarding property division, allocation of debts, spousal support, child custody schedules, visitation rights, and child support amounts. Include any special provisions tailored to your circumstances. The agreement should be in writing, signed by both parties, and ideally notarized or witnessed to ensure enforceability. Consulting a lawyer is recommended to make sure the agreement complies with local laws.


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