A settlement agreement is a written contract among the parties to a dispute that settles some or all of the issues in the dispute. Any type of civil, as opposed to criminal, conflict can be resolved by a settlement agreement. A settlement agreement can resolve all of the issues in a conflict or only some of them. A lawyer consultation with a Texas lawyer would provide more information about the role of settlement agreements in civil cases.
If a married couple decides to end their marriage, they may settle the issues between them by way of a settlement agreement per Texas marriage laws. Of course, either party may also refuse to sign a settlement agreement, and the refusal to sign a settlement agreement does not affect the legal case in any way other than to prevent resolution by agreement.
A divorce settlement agreement is a contract between the spouses which details the resolution at which they have arrived regarding the issues in their divorce. This agreement allows the parties to settle issues related to the divorce in a way that is mutually satisfactory outside of a courtroom. As with other settlement agreements, a divorce settlement agreement might resolve some or all of the issues in a divorce.
A divorce settlement agreement is also known as a marital settlement agreement. A court incorporates this agreement into its final decree of divorce once the legal divorce proceedings are finalized. It is important to note that this type of settlement agreement can be used in both divorce and legal separation proceedings.
What Is the Purpose of a Settlement Agreement?
The purpose of a settlement agreement is to create a written document that states the terms and conditions of an agreement among the parties to do certain things to bring an end to a dispute or conflict. A settlement agreement is a kind of contract. If it is concluded in a legal manner, i.e., it is valid, and the parties sign it, it is enforceable in a court of law like every other valid contract.
If one party to a settlement agreement does not do what they have promised in the agreement, the other party or parties may sue that party in civil court. So, a settlement agreement should reflect a serious intention by the parties to the agreement to resolve a conflict on the terms stated.
What Should Be Included in a Settlement Agreement?
A settlement agreement should be a clear and complete statement of the terms and conditions to which the parties to a divorce or separation have agreed in order to finalize the end of their marriage or their separation.
For example, the issues in a divorce or separation may include alimony, child support, child custody and visitation, division of the marital property, including the family home, and division of the couple’s debt. Each of these issues may be complex.
For example, the division of the marital property may involve a business owned by one or both of the spouses, the family home, bank accounts, retirement savings accounts, employer-provided health insurance and pension benefits. A complete marital settlement agreement would deal with division of each of these assets and serve as a complete plan regarding the division.
The couple may not be able to agree on child custody, whether they are going to share custody or whether one parent will have sole custody and the other visitation. Of course, there are two types of custody, physical and legal, and the parents have to agree on both types. The child or children of the marriage may be old enough to express a preference, and the impact of custody on their lives is sure to complicate the issue.
The custody issue may have an effect on the child support issue as one spouse may have to pay the other child support if the other parent has sole physical custody. So, again, the issue of custody can become complex.
How Can You Prepare for a Successful Settlement Agreement?
A couple arrives at a marital settlement agreement by negotiating, either directly themselves or through lawyers. Each spouse should define their property, keeping in mind that Texas is a community property state.
A spouse would want to gather receipts, credit and debit cards, bank statements, and other proof of private property ownership. They would want to list the property that they think is their sole property and what items they consider to be community property.
Spouses should remember to list retirement accounts and the value of any pension benefits that one or the other may have. If the amounts in each spouse’s respective accounts are roughly the same, they may decide that each will become the sole owner of their account.
If the balances in the respective accounts are not equal, then they would need to be divided equally, assuming they are community property. Or a spouse might trade their interest in a retirement account for another asset, such as a larger share in the family residence.
If the couple has children, their care after a divorce or separation is another issue that must be hammered out in detail. Such issues as custody, child support payments, and visitation schedules must be agreed upon.
If one spouse earns much more than the other, then that spouse may need to pay spousal support to the other. One spouse may not have an income and may be financially dependent on the other. Then, the payment of spousal support and the period of time for which the paying spouse may need to pay the support could be agreed.
The spouses may agree that the dependent spouse should undertake a program of actions designed to help them achieve financial independence, e.g., going to school to train for a trade or profession.
Clearly, if a couple has been married for some time, e.g., 10 to 20 years or more, has children and has accumulated substantial assets, then the negotiation of a settlement agreement might be complicated. A couple married for a short time with fewer assets and no children would have an easier time of it.
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What Are the Requirements for a Settlement Agreement in Texas?
Texas law does not require divorcing or separating couples to have a marital settlement agreement. However, if a couple has one, they can possibly agree to the terms of their divorce or separation long because they have a court hearing. This can simplify and speed up the divorce process for both parties.
To finalize a divorce in Texas, an individual must complete and sign a “Final Decree of Divorce” form. This form would then be presented to the court for its review. If the judge approves it, a signed copy is turned in to the court and this leads to a final decree of divorce that ends one’s marriage.
A marital settlement agreement is an additional document. It is submitted to the court also, and if approved by the judge, is incorporated into the final decree of divorces. Reportedly, the more detailed the marital settlement agreement, the easier it is for the judge to incorporate it into a final decree.
How Do I Enforce a Settlement Agreement in Texas?
An individual who believes that their ex-spouse has breached the terms of their marital settlement agreement may file a petition for enforcement of the agreement with a Texas court. The court then holds a hearing to address the issue of whether or not the ex-spouse has breached the agreement. The court may also inquire into the issue of whether the settlement agreement is valid.
If the court finds that the ex-spouse has breached a valid agreement, a judge may order the ex to comply with the agreement. The court may also order the ex-spouse to pay the expenses that the other spouse incurred in going to court to enforce the agreement, e.g., attorney’s fees.
A petition for contempt may also be filed if a person’s ex-spouse has failed to comply with a court order, especially if the issue is failure to pay child support in the amount owed when due. This can bring a number of negative consequences for the non-paying spouse, including payment of a fine, a term of imprisonment in jail, or both.
To successfully convince the court that an ex-spouse is in contempt, an individual needs to show that their former spouse was aware of the court order and that they had the ability to comply with it but willfully chose not to do so.
Are Settlement Agreements Confidential in Texas?
The parties to a settlement agreement may include a provision or provisions that make the settlement agreement confidential. There is a question as to whether a Texas court would enforce it.
Generally, courts do not enforce confidentiality agreements if they violate a statute or if enforcing a confidentiality agreement would compromise the “public interest.” This is a vague standard which gives a court broad discretion to choose to enforce an agreement. A confidentiality provision in a marital settlement agreement would, in all likelihood, be enforced by a Texas court.
A person to whom the confidentiality of a marital settlement agreement is critically important would want to have the advice of a family lawyer in Texas regarding their own agreement and any confidentiality provisions in it.
Do I Need a Settlement Agreement Lawyer?
If you are going through a divorce or separation in Texas, you want to talk to a family lawyer in Texas. LegalMatch.com can connect you to a lawyer who can negotiate a marital settlement agreement on your behalf. Your lawyer can work with you to identify your goals for a settlement agreement and make sure the agreement you end up with represents the fairest possible agreement and is one that meets your objectives.
