What Is a Property Agreement?

A property agreement is a legal document that states the ownership of a property or equipment during a couple’s relationship. This document emphasizes the owner's properties and how it will be divided if the couple separates or files for divorce.

How to Write a Property Agreement

property agreement template

There are cases wherein married or unmarried couples share property ownership, but with a catch. Terms are laid out in a simple agreement, which ensures that if they separate, the properties are distributed accordingly. If you’re planning to write one, guidelines are listed below to help you out.

1. Prepare the Terms and Conditions

Before getting into the properties itself, let your clients discuss the terms and conditions. Ideally, this should take place before other matters are negotiated. Also, facilitate the discussion to ensure there is no bias in the terms and conditions.

2. Identify the Assets Involved

According to the common law, you can’t divide individual properties that you own but rather equally divide the assets that you share. But in community properties, things are different because these assets are bought in the span of the relationship.

3. Compute the Obtained Debts

Before writing the agreement, the debts of both parties should be settled. In common law, debts are considered conjugal if both parties benefited from it. Any debt that was made before the relationship, the debtor must take sole responsibility for the payment.

4. Allow the Clients to Discuss Other Matters

Let your clients talk again to check for discrepancies between their claims. Inconsistencies are common, but talking can sort things out. Allow them to talk until they resolve all discrepancies. If one of them decides to sell any shared property, make a sales agreement for it.

5. Have Your Clients Go Over the Document

Lastly, present the legal agreement to your clients for reviewing. This serves to verify if all written content corresponds to the details presented. Afterward, sign the document and let your clients affix their signatures as well.

General FAQs

  • What is the importance of written agreements?

  • What are the different types of properties?

  • What are the types of agreements?

  • What are the elements of an agreement?

  • How different is a contract from an agreement?

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