An equalisation agreement is a legal document that outlines the division of assets between two parties following a separation or divorce. It is designed to ensure that each party receives a fair share of the assets accumulated during the marriage or relationship.

The equalisation process typically involves calculating the total net worth of the assets owned by each party. This includes items such as property, investments, savings, and any other assets that were acquired during the relationship. Once the net worth of each party has been established, the agreement sets out the steps that need to be taken to ensure that both parties receive an equal share.

This can be achieved in a number of ways. For example, one party may be required to transfer ownership of certain assets to the other party. Alternatively, the equalisation payment may be made in cash, with one party paying the other the difference between their respective net worths.

It is important to note that an equalisation agreement is a legal document, and as such, it should be drafted by a qualified legal professional. This ensures that the agreement is legally binding and that both parties fully understand the terms and conditions outlined in the document.

In addition, it is important for both parties to seek the advice of a qualified accountant or financial advisor to ensure that the equalisation agreement is fair and equitable. The accountant or financial advisor can assist with the calculation of net worth and provide advice on the most appropriate method for equalisation.

In summary, an equalisation agreement is an important document that ensures that both parties receive a fair share of the assets acquired during a relationship. To ensure that the agreement is legally binding and fair, it is important to seek the advice of a qualified legal professional and accountant or financial advisor.