A Marital Settlement Agreement, also known as a property settlement agreement or divorce settlement agreement, is a legally binding document that outlines how a couple has agreed to divide their assets, responsibilities, and rights after a divorce. This written agreement is usually prepared with the help of attorneys, and once both parties agree upon it, it’s presented to the court for approval.
Child Custody
Legal child custody pertains to the right and responsibility to make decisions about a child’s upbringing, including decisions about education, healthcare, and religious training. Physical custody, on the other hand, relates to where the child will live.
Visitation Rights
If one parent is granted sole or primary physical custody, the other parent usually receives visitation rights. This part of the agreement details the schedule for visitation, including details like pick-up and drop-off times and locations, special arrangements for holidays, and any restrictions or stipulations.
Child Support
The agreement will specify the amount of child support to be paid, by whom, and how often. Child support is typically calculated using state guidelines and considers factors like the parents’ income levels, the number of children, and the custody arrangement.
Alimony or Spousal Support
If one spouse will be providing financial support to the other after the divorce, the alimony or spousal support agreement will stipulate the amount, frequency, and duration of these payments.
Marital Property and Distribution of Assets
Marital property and distribution of assets includes the division of all marital property, including real estate, vehicles, furnishings, investments, and debts. The agreement should specify which items are considered separate property (owned by one spouse prior to the marriage or acquired during the marriage via inheritance or gift) and which are considered marital property (acquired during the marriage using marital funds).
Other Matters
Depending on the couple’s situation, the agreement might also address issues like:
- Health insurance;
- Life insurance;
- Tax deductions and exemptions;
- Retirement accounts;
- The resolution of future disputes (for instance, using mediation or arbitration).
Finalizing a Marital Settlement Agreement can significantly simplify the divorce process, as it allows the couple to avoid a lengthy court battle. However, it requires thoroughness, mutual cooperation, and legal guidance to ensure fairness and compliance with all applicable laws.
Is a Marital Settlement Agreement Required?
A Marital Settlement Agreement is not strictly required to file for divorce or separation. However, in most cases, it is strongly advised. This agreement can help the divorcing parties avoid litigation by settling critical issues related to property division, child custody, child support, and spousal support in advance. This agreement can then be submitted to the court, where a judge will review it for fairness before it is finalized.
Furthermore, a Marital Settlement Agreement may be used in both divorce and legal separation. While divorce ends a marriage, legal separation allows a couple to live apart while still being legally married. In both instances, having a detailed agreement can provide clarity and reduce potential conflicts concerning shared responsibilities and assets.
Is a Marital Settlement Agreement the Same as a Prenuptial Agreement?
While both documents deal with aspects of family law and may address similar topics, a Marital Settlement Agreement, and a Prenuptial Agreement serve different purposes and are used at different stages of a relationship.
A Prenuptial Agreement, or prenup, is a legal document created before a couple gets married or enters into a civil partnership. This agreement outlines the property and financial rights of each party in the event of a divorce. The aim is to protect each individual’s assets and to establish the division of assets and debts ahead of time.
On the other hand, a Marital Settlement Agreement is a contract that is drawn up at the end of a marriage during the divorce proceedings. It outlines how the couple has agreed to divide their assets, debts, and other matters related to their separation or divorce.
Can a Marital Settlement Agreement Be Changed?
Once a Marital Settlement Agreement is signed by both parties and approved by the court, it becomes a part of the final divorce decree and is legally binding. However, that doesn’t mean it can never be changed.
In certain circumstances, a party can request the court to modify the agreement. These circumstances usually involve significant changes in the situation of one or both parties, such as:
- A substantial change in income;
- A job loss;
- Relocation;
- A change in the health or well-being of a child.
The party seeking modification must usually prove to the court that there has been a substantial change in circumstances. The party must also prove that the change is in the best interest of the involved parties, especially in cases related to child custody or support.
What Are the Advantage of Marital Settlement Agreements?
Marital Settlement Agreements offer numerous benefits, including:
- Control: You and your spouse have control over the terms of your agreement. Instead of leaving important decisions about property, custody, and support up to a judge, you can decide what works best for your unique situation.
- Reduced Conflict: By agreeing to the terms of your separation or divorce, you can avoid a lengthy court battle, which often leads to increased tension and conflict.
- Cost-Effective: If you can agree on the terms of the agreement, you can save on legal fees associated with court proceedings.
- Confidentiality: While court proceedings are public, a Marital Settlement Agreement allows you to keep your affairs private.
- Faster Resolution: By agreeing to terms, you can expedite the divorce process.
However, there can be drawbacks:
- Unequal Bargaining Power: If one spouse has more resources or is more knowledgeable about the couple’s finances, it could lead to an unfair agreement.
- Incomplete Information: If you aren’t fully aware of your spouse’s assets and debts, you could agree to terms that aren’t in your best interest.
- Irreversibility: Once a judge approves the agreement, changing it can be difficult, time-consuming, and costly.
How Can My Spouse and I Create a Marital Settlement Agreement?
Here’s how you and your spouse can create a Marital Settlement Agreement:
- Inventory Your Assets and Debts: Make a list of all marital and separate property and any outstanding debts. This includes real estate, bank accounts, vehicles, retirement accounts, and credit card balances.
- Decide on Custody and Visitation: If you have children, decide who will have physical and legal custody and create a visitation schedule.
- Determine Child and Spousal Support: Agree on who will pay child or spousal support, how much will be paid, and for how long.
- Hire an Attorney: It’s wise to hire a lawyer to review the agreement and ensure your rights are protected. Even if the divorce is amicable, legal advice can be invaluable.
- Draft and Sign the Agreement: Once you’ve agreed on terms, the agreement should be put in writing, reviewed by each party and their lawyers, and then signed.
- Submit to the Court: The signed agreement should be submitted to the court as part of your divorce proceedings. If the judge approves it, the agreement becomes a court order.
- Follow the Agreement: Once the agreement is finalized, it’s important to follow all terms to avoid legal consequences.
Remember, even though you and your spouse are creating the agreement together, you should each have your own attorney to ensure your interests are represented fairly.
Should I Hire a Lawyer for Help With a Marital Settlement Agreement?
Absolutely, hiring a family law attorney to help you with a Marital Settlement Agreement is a smart move. A family law attorney can provide valuable guidance, ensuring that your rights are protected, and the agreement is fair and balanced.
Lawyers understand the intricacies of family law, and they can help you avoid pitfalls you may not foresee. They can help with drafting the agreement, ensuring the legality of its terms, and offering advice on complex issues like child custody, visitation, child support, alimony, and property division.
Connect with a knowledgeable, experienced family law attorney through LegalMatch today. LegalMatch makes it easy to find a lawyer who fits your needs and can guide you through the process of creating a Marital Settlement Agreement. Just present your case, and LegalMatch will match you with an attorney in your area. Don’t leave your future to chance. Use LegalMatch to secure legal assistance today.
