10 Things That Safeguard Your Marital Settlement Agreement

Creating a marital settlement agreement can be a daunting part of your divorce, but getting it right is important for protecting your interests and future. When you are in a high-tension situation, it can be easy to miss or gloss over key areas, like spousal support or your high-value art collection. We have got insightful tips to help you navigate the process with confidence, ensuring your agreement is fair and comprehensive—and truly safeguards your well-being. Read on to learn how to take control of your marital settlement and lay the foundation for a secure future.

 

What Is a Marital Settlement Agreement?
In case you are early on in the divorce process, a marital settlement agreement (MSA) is a legal document that outlines the terms of a divorce or separation between spouses. This agreement is designed to settle various aspects of the legal dissolution of a marriage, including:

 

• Division of assets and debts: This section specifies how a couple’s property, assets, and debts will be divided. This can include real estate, bank accounts, retirement funds, vehicles, and personal belongings.
• Spousal support: This details whether one spouse will pay alimony to the other, including the amount, duration, and conditions of the support.
• Child custody and parenting time: This part establishes the custody arrangement for any minor children, including physical and legal custody, parenting time schedules, and decision-making responsibilities.
• Child support: This determines the amount of child support to be paid by one spouse to the other, based on state guidelines, the needs of the child, and the financial circumstances of both parents.
• Other considerations: This area may include agreements on health insurance, life insurance, education expenses for children, and any other relevant matters that the spouses agree upon.

 

An MSA is typically negotiated between the spouses, often with the help of their attorneys and a mediator, and then submitted to the court for the entity of the final judgement of divorce. Once approved, it becomes a binding legal contract. That’s why you need to think through all aspects of your future before signing it. The goal of an MSA is to provide a clear and fair resolution to the issues arising from the divorce or separation, reducing the need for further legal disputes.

 

Why Do I Need a Marital Settlement Agreement?
A marital settlement agreement is important for several reasons during a divorce:

1. Clarity and organization: Your MSA clearly outlines the terms and conditions you and your spouse agree on, reducing misunderstandings and confusion about each person’s responsibilities and rights going forward.
2. Legal binding: Once incorporated into your Final Judgement of Divorce, your MSA becomes a court order that both parties must adhere to, providing legal enforceability for the agreed-upon terms.
3. Conflict reduction: By negotiating and agreeing on terms outside of court, the MSA can help you and your spouse reduce conflict and foster a more amicable divorce process.
4. Court approval: The court often requires a detailed agreement to grant a divorce. An MSA provides the court with a comprehensive outline of how you as a couple have resolved their issues, facilitating a smoother legal process.
5. Customization: You and your spouse can tailor their MSA to their specific needs and circumstances, covering unique aspects of your relationship and ensuring that you have addressed all relevant matters.
6. Future protection: An MSA helps protect both parties’ future interests by establishing clear terms for alimony, child support, and division of assets, preventing potential future disputes.
7. Efficiency: Having a well-drafted MSA can expedite the divorce process, saving time and reducing legal fees by avoiding prolonged litigation.

Subhead: 5 Areas to Focus On In Your Marital Settlement Agreement
When drafting a marital settlement agreement (MSA), you should cover these five key areas to protect your future:

 

1. Division of Assets and Debts

You and your spouse should clearly outline how all marital assets and debts will be divided. That way, you both know who will receive which assets and who will be responsible for which debts, preventing future conflicts. This section includes:

• Real estate properties
• Bank accounts
• Retirement accounts and pensions
• Investments and stocks
• Personal property (vehicles, jewelry, furniture)
• Debts (mortgages, credit card debt, loans).

 

2. Spousal Support (Alimony)

Will you or your spouse be paying alimony to the other? This section spells whether spousal support will be paid, including:

• Amount of support
• Duration of payments
• Conditions for modification or termination of support.

 

This is important because alimony helps provide financial stability for the spouse who may need support after the divorce, and clearly sets expectations for both parties.

 

3. Child Custody and Parenting Time

Setting a secure foundation for your children after a divorce ensures their well-being by providing a stable and predictable environment, and helps prevent custody disputes. You should establish the custody arrangement for any minor children, specifying:

• Physical custody (where the child will live)
• Legal custody (who has decision-making authority)
• Parenting time schedules (including holidays, vacations, and special occasions).

 

4. Child Support

When you split with your co-parent, it is important that your children’s financial needs will be met, contributing to their health, education, and overall welfare. This section should determine the amount and terms of child support payments, considering:

• State guidelines for child support
• The financial needs of the child
• The income and expenses of both parents.

 

5. Additional Provisions

Take the time to include any other agreements that are important to both parties, such as:

• Health insurance coverage for the children
• Life insurance policies to secure child support or alimony payments
• Educational expenses (school tuition, extracurricular activities)
• Tax considerations (who will claim children as dependents, tax implications of asset division).

 

By covering these five key areas in your MSA, you can create a thorough and well-structured agreement that safeguards your future and provides clarity for both parties moving forward.

 

5 More Areas to Consider in Your Marital Settlement Agreement
Once you have covered the main areas like assets, debts, child custody and support, and alimony, consider these other things you may not have thought to include:

 

1. Business ownership and interests: If either you or your spouse owns a business, outline how the business will be handled, including division of ownership, responsibilities, and potential buyout agreements. This ensures clarity and prevents future disputes over business operations and profits.
2. Collections and valuable assets: If you own or co-own a collection with your spouse, such as art, antiques, or rare items, explicitly list and include appraisals in the agreement. This helps you to then fairly divide valuable assets and prevents disagreements over their worth or ownership.
3. Intellectual property and royalties: Intellectual property, including patents, trademarks, and copyrights, can be significant assets. Your MSA agreement should specify who retains ownership and how any royalties or income from these assets will be distributed.
4. Season tickets and memberships: If you share items like season tickets to sports events, theater subscriptions, club memberships, vacation timeshares, and so on, address those in your MSA. Deciding who retains these or if you share usage in your MSA can prevent conflicts and ensure that both parties have clear expectations.
5. Future inheritance and trusts: While not always considered, you can include a clause about future inheritances and any existing trusts. Clarifying these in the settlement can protect anticipated assets and provide a clearer financial picture for both parties.

 

Contact Lawrence Law’s Divorce Attorneys for Your Marital Settlement Agreement

Going through a divorce and creating a marital settlement agreement may be challenging. Trust Lawrence Law’s experienced attorneys to guide you every step of the way, working with you to try and achieve the peace of mind you deserve.

 

Contact us today at (908) 645-1000 to schedule your initial consultation or complete our confidential contact form. With offices conveniently located in Watchung and Red Bank, NJ, Lawrence Law is ready to serve families across New Jersey. Reach out to Lawrence Law now and begin addressing your family law concerns with confidence.

 

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.