marital settlement agreement Archives - Lonich Patton Ehrlich Policastri

A Marital Settlement Agreement (or “MSA”) is essentially a contract between a divorced couple that memorializes the division of property and debt. The document also allows the parties to include almost anything they desire in the agreement, such as who will provide support for adult children. The MSA is usually incorporated into the final judgment and signed by the judge, giving the contract the same effect of a court order.

Due to the finality and force of an MSA that has gone before the judge, promises made in the agreement should be made very carefully and taken very seriously. If you agree to something in your MSA, you must be prepared to follow through. One New Jersey father* learned that the hard way and will be required to provide fifty percent of the support his daughter needs at Cornell law school, per the MSA he signed with his ex-wife.

The father argued that although he agreed to help his daughter with her higher-education costs, he wanted to have a say in where she studied and where she lived. Not surprisingly, he wished her to choose a less-expensive alternative, but she chose Cornell. As of today, Cornell law school’s cost of attendance is around $80,000.

In the end, this father must pay about $120,000 for half of his daughter’s legal education because the agreement did not include typical language that would have given father a say in his daughter’s educational decisions. MSA’s are serious business; this situation is one example why it pays to have a great attorney looking out for your interests.

If you need guidance creating your MSA or are interested in creating a prenuptial agreement, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization). Our attorneys have decades of experience handling MSA’s and complex family law proceedings, and happily offer a free consultation to new clients.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

*“Dad must pay half of his daughter’s law school expenses at Cornell, appeals court says,” via ABA Journal: http://www.abajournal.com/news/article/dad_must_pay_half_of_his_daughters_law_school_expenses_at_cornell_appeals_c

California family law is quite complex. For those who are not familiar with the workings of California law, it may be very difficult to differentiate between the terms “premarital agreement,” “marital agreement,” and “marital settlement agreement.”

A premarital agreement is a contract that is executed between two prospective spouses. The premarital agreement, or “prenup,” is entered into in anticipation of marriage with the idea that it will become effective upon the marriage of the two prospective spouses. Premarital agreements often address issues of the parties’ present and future property rights. Premarital agreements must comply with certain formalities to be enforceable.

A marital agreement, or postnuptial agreement, is a contract that is executed by spouses during marriage. This type of contract affects the rights and obligations incident to an ongoing marriage, both during life and after death. Post-nuptial contracts can be broad in scope, laying out in comprehensive detail the parties’ rights and duties towards each other and the characterization of property. This category also includes “transmutation” agreements, which are contracts changing the property status of a specific asset from its current form to another form (e.g. separate property to community property). Like a prenuptial agreement, marital agreements must comply with certain formalities in order to be enforceable. Additionally, spouses entering into postnuptial agreements must comply with their fiduciary obligations and act with the “highest good faith and fair dealing” towards one another.

A marital settlement agreement (MSA) is executed as part of a dissolution of marriage or legal separation. The MSA typically addresses the parties’ ownership of marital property and other rights and obligations in relation to divorce or separation. Usually, an MSA is incorporated into a judgment of dissolution, and the rights and obligations of the ex-spouses are governed by the terms of the final judgment.

Note that the same rules governing these agreements between spouses also generally apply to domestic partnerships. For more information about prenuptial agreements, marital agreements, or marital settlement agreements, please contact us.

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