Legal Definitions - marital settlement agreement

A marital settlement agreement is a formal, written contract created by spouses who are in the process of divorcing. It outlines the rights and responsibilities of each person after their marriage officially ends. This agreement is designed to resolve all outstanding issues related to the divorce without needing a judge to make every decision.

Once signed by both parties and approved by the court, a marital settlement agreement becomes a legally binding document. It typically covers a wide range of topics, including:

• Child Custody and Visitation: Who the children will live with and how the other parent will spend time with them.
• Child Support: Financial contributions from one parent to the other for the children's upbringing.
• Spousal Support (Alimony): Financial payments from one spouse to the other, often for a set period, to help them become financially independent.
• Division of Property and Debts: How assets (like homes, bank accounts, retirement funds) and liabilities (like mortgages, credit card debt) acquired during the marriage will be split.

Generally, the financial terms (like property division and spousal support) in a marital settlement agreement are considered final and cannot be changed unless both parties mutually agree to a modification. However, provisions related to child support can often be modified by a court if there's a significant change in circumstances (e.g., a substantial change in income for either parent) or after a certain period has passed.

An agreement can be challenged and potentially invalidated if it was created under fraudulent conditions, if one party was forced into signing it (duress), or if its terms are extremely unfair (unconscionable). Similarly, if a mediator involved in drafting the agreement was not impartial or failed to properly inform the parties of their rights, the agreement might also be set aside by a court.

Here are some examples of how a marital settlement agreement might apply:

• Example 1: Comprehensive Family Resolution
  After 18 years of marriage, David and Maria decide to divorce. They have two teenage children, a family home, several investment accounts, and a shared business. Instead of engaging in lengthy court battles, they work with their respective attorneys to negotiate and draft a marital settlement agreement. This agreement specifies that Maria will have primary physical custody of the children, David will pay a set amount for child support until the children graduate high school, and they will sell the family home, dividing the proceeds equally. It also details how the business will be valued and bought out by David, and how their retirement savings will be split. This comprehensive document provides a clear, legally enforceable plan for their post-divorce financial and parental responsibilities.

  How it illustrates the term: This example shows how a marital settlement agreement acts as a binding contract covering multiple aspects of a divorce, including child custody, support, and the division of significant assets and debts, providing a framework for their future lives apart.

• Example 2: Property and Debt Division in a Shorter Marriage
  Liam and Chloe were married for five years and do not have children. They own a condominium together and have some joint student loan debt. To finalize their divorce efficiently, they create a marital settlement agreement. The agreement stipulates that Chloe will keep the condominium and refinance it to remove Liam's name from the mortgage, while Liam will take sole responsibility for the student loans. They also agree that neither will pay spousal support to the other. This agreement ensures a clean separation of their shared financial obligations and assets without the need for court intervention on every detail.

  How it illustrates the term: This scenario demonstrates that a marital settlement agreement is useful even in divorces without children, primarily focusing on the division of property and debts, and establishing financial independence between the parties.

• Example 3: Modifying Child Support Due to Changed Circumstances
  Years after their divorce, Sarah and Tom had a marital settlement agreement that included a provision for Tom to pay Sarah $1,500 per month in child support. Recently, Tom was laid off from his well-paying job and has taken a new position that pays significantly less. He consults with an attorney to petition the court to modify the child support amount. Because child support provisions within a marital settlement agreement are subject to modification if there's a substantial change in either parent's financial circumstances, the court will review Tom's income change and may adjust the support obligation, even though the original agreement was signed years prior.

  How it illustrates the term: This example highlights a key feature of marital settlement agreements: while many terms are final, child support provisions can be revisited and modified by the court under specific conditions, such as a significant change in income, demonstrating the agreement's adaptability in certain areas.