Understanding Divorce Settlement Agreements

Divorce settlement agreements are a necessary step in finalizing the details of a divorce without a trial. Divorce is an emotional process that includes substantial and important legal decisions. While each divorce brings its own unique challenges, every divorce that is settled without the need for a divorce trial includes a divorce settlement agreement. It is common for individuals to want to rush the settlement process in order to move on with their lives, but it is crucial that you understand what you are agreeing to when signing the document. This document will impact your future, so it is in your best interest that you have legal support throughout this process to ensure that your well-being is being considered.

What is Included in a Divorce Settlement?

Divorce settlement agreements are commonly known as marital settlement agreements in New Jersey. A marital settlement agreement is a legally binding contract, meaning that both spouses are required to adhere to the terms of the agreement and can face legal consequences if they violate it. A marital settlement agreement commonly includes the division of assets, debts, a child custody and parenting plan, and financial support for the spouses and their children. By creating a settlement that is agreeable for both spouses, future conflicts may be avoided.

Assets and Debts

One of the most important decisions that needs to be made during a divorce is the division of property and assets. Property can include cars, homes, bank accounts, and retirement assets. Property is essentially anything that was acquired during the marriage, which can even include furniture. That said, inheritances and gifts received by only one spouse will not be divided in a divorce. Debts are also a crucial consideration. This can include the mortgage owed on the shared family home, credit card debt, auto loans, and personal loans. Many factors contribute to the division of property and debts, such as the length of the marriage, the income and financial situation of each spouse, who contributed to the acquisition and maintenance of property, and who incurred the debt. Importantly, contributions by either spouse is limited to financial contributions; it also considers who took care of the home, raised any children, and made any other non-financial contributions to the marriage. The agreement’s goal is to consider each family’s unique circumstances and ensure that both spouses find the agreement fair and equitable under the circumstances.

Custody and Support of Children

If children were born during the marriage, the agreement must address child custody and financial support for the children. Child custody agreements are needed to address major decision making for the children, where the children will reside and attend school, and the amount of time that the children will spend with each parent. There are two types of custody in New Jersey: legal custody and physical custody. Legal custody addresses who will make the major decisions relating to the children’s upbringing. Physical custody addresses where the children will reside and how much time they will spend with each parent. Joint custody is the most common arrangement that spouses agree to, which means that both parents share joint responsibility for major decision making and each parent will spend substantial time, or even equal time, with the children. Alternatively, the spouses may agree for one parent to have primary custody of the children with the other parent having parenting time on a fixed schedule. The children’s well-being should be a top priority. Having a well-written agreement can create a smoother adjustment process for children and minimize conflict between their parents. How the children will be financially supported by both parents must also be addressed.

Spousal Support

Spousal support, also known as alimony, is a type of financial support that is designed to help lower-earning spouses maintain financial stability following the divorce. The amount of alimony is determined by factors such as the length of the marriage, each spouse’s income, contributions to the marriage, the ability to pay spousal support, and the lifestyle of the couple during the marriage.

The Importance of Legal Guidance

Hiring a family law attorney to effectively negotiate on your half and properly draft a marital settlement agreement can make all the difference in the divorce process. It is crucial that you understand what you are signing when creating a marital settlement agreement because this document will affect your future for years to come. At Moskowitz Law Group, we can help you make informed decisions throughout this process while protecting your rights. Investing in a family law attorney can save time and money in the long run and address any questions you may have. Contact a family law attorney at Moskowitz Law Group today for a free virtual consultation.