Benefits of Marital Settlement Agreements
Premarital Agreements and Marital Settlement Agreements are both contracts that govern how property will be divided and debts paid in the event of a separation or divorce. In many respects the difference between each type of agreement is timing. Premarital Agreements are contracts that are entered into prior to marriage. Marital Settlement Agreements are contracts that are entered into when a couple separates or divorces. Both types of agreements require full and fair disclosure of both parties’ assets and debts.
Premarital Agreements allow the couple to pre-plan for what will happen to the couple’s property and debts should they divorce at some later time. Premarital Agreements can be limited or be more inclusive. The Agreement may address property and debts that the couple had at the time before they are married or property accumulated after the marriage, future support, inheritance that each may receive after marriage, and divisions of a spouse’s estate in the event of death. If the parties do not sign a premarital agreement or if their premarital agreement only covers certain types of property or situations, then once married, the couple’s decisions about their financial situation and financial future are subject to the divorce law.
Marital Settlement Agreements are contracts that resolve all of the property, debt, and support issues that a couple faces at the time of separation or divorce. Rather than having the court decide the couple’s financial situation and financial future according to the law, the divorcing couple makes these decisions between themselves with the assistance of an attorney or mediator, and the attorney drafts the contract based on the couple’s agreed-upon terms and conditions for the agreement.
If you are interested in a consultation to discuss the options available to resolve your divorce, custody issues, support, or equitable distribution issues, please contact me and I can help you investigate your options. Call me, Lenore M.J. Myers, at 215-470-3121 or email me at email@example.com.