MARITAL SETTLEMENT AGREEMENTS IN CALIFORNIA
A Marital Settlement Agreement (MSA) in California is a legally binding agreement between spouses that defines the terms of their divorce settlement. The MSA encompasses all settled issues, such as property division, spousal support, child support, child custody, and any other relevant matters. Once both spouses agree on the issues included in the MSA, it is filed with the court and incorporated into the final judgment.
The MSA should include all pertinent and agreed-upon terms for the global settlement of a divorce. Some of the most common terms are as follows:
1. PROPERTY DIVISION:
In California, all assets and debts acquired during the marriage are presumptively community property and are subject to equal division absent a different agreement by the spouses. The MSA will outline how certain assets and debts will be divided between the spouses. This may include real estate, bank accounts, retirement accounts, financial investments, and debts.
2. SPOUSAL SUPPORT:
Spousal support, also known as alimony, may be awarded to the lower-earning spouse to ensure that they can maintain their standard of living after the divorce. The MSA provides an opportunity to resolve this issue by an agreement that is best suited to particular circumstances, including lump-sum buyout, in-kind support, support modification milestones, and step-down/termination dates.
3. CHILD SUPPORT:
The MSA will also include child support for minor children of the marriage. In California, child support is calculated based on a presumptively correct guideline formula. However, in the MSA, the spouses may agree to child support in greater or lesser amounts as long as those amounts will adequately meet the financial needs of the children. Moreover, the spouses may agree to other ancillary forms of child support such as for the payment of private school, 529 accounts, and similar.
4. CHILD CUSTODY:
Child custody is often one of the most contentious issues in a divorce. Agreeing upon child custody and visitation in an MSA permits the spouses to reach agreements between themselves rather than leave the determination to the court. This may prove to be an auspicious beginning to co-parenting, and at a minimum, it removes precludes a stranger from determining what is in the best interest of a child.
5. ATTORNEY FEES:
The MSA will typically include a provision for the payment of attorney fees by one spouse to the other. Additionally, some MSAs include a provision that prevailing party attorney fees be awarded in the event of a post-judgment challenge.
6. INSURANCE:
The MSA may also address issues related to insurance coverage, particularly life insurance related to both child and spousal support obligations. This can include how the premiums will be paid, who will be responsible for maintaining coverage, the amounts of coverage required, and how the coverage will be payable to the beneficiaries.
Divorce can have significant tax implications, and the MSA may address how taxes will be handled, including duties for responding to and resolving prospective tax issues.
8. DISPUTE RESOLUTION:
The MSA may include provisions for how any disputes related to the divorce will be resolved. This may include mandatory mediation clauses that require the spouses to mediate any disputes before returning to court.