What is a marital settlement agreement? It is a document specifying the terms that both spouses agree on in a divorce. They can use it to define matters such as property division, child support, and spousal support. MSAs can help couples avoid long court battles and stress, but there are some mistakes of which to beware.
Your marital settlement agreement should protect your interests. Call the Law Offices of Roger W. Stelk at 847-506-7330 to discuss your case.
What Are the Key Components of a Marital Settlement Agreement in Illinois?
Important parts of a marital settlement agreement include property division and parental responsibilities.
Property Division
One function of a marital settlement agreement is to outline the division of the couple’s marital property. Real estate, bank accounts, retirement funds, vehicles, and art collections are examples of what could get divided.
The equitable distribution principle in Illinois calls for fair division, and it does not have to be equal. Agreements should detail which spouse keeps specific assets and how property the spouses jointly own will be sold or transferred.
Debts
A marital settlement agreement must cover the couple’s liabilities. These often include credit card debt, loans, and mortgages. It is important to clarify which spouse pays off which debt. Making missteps in the wording of the agreement can have a spouse on the hook for a debt he or she thought the other took on years ago.
Child Custody and Visitation
Marital settlement agreements should address parenting time and the allocation of parental responsibilities. Parents must decide issues such as who has physical custody of the child, where the child lives, and how the parents will make decisions about the child’s educational, medical, and extracurricular needs.
Custody can be sole or joint. Depending on the decisions the parents make, the agreement may need to specify visitation rights for the noncustodial parent.
Child Support
Illinois uses the income shares model to calculate child support. Both parents’ incomes are major factors in this formula.
The marital settlement agreement should include the child support payment amount, as well as the frequency and duration of payments. It also needs to specify the handling of issues such as medical expenses, education costs, and extracurricular activities. Meanwhile, how long it takes to get child support after the parents sign the agreement depends on the court’s caseload and the state’s processing system.
Spousal Maintenance (Alimony)
Any spousal support payments and the duration are part of what should be included in a divorce settlement agreement. Factors to consider include the length of the marriage, the lifestyles the spouses enjoyed during the marriage, and both spouses’ financial needs. For example, the median household income in Arlington Heights is $113,502. That amount often drops after a divorce.
Taxes
The MSA should specify which spouse claims the children (or which children) as dependents on tax returns. It also needs to cover how the division of assets, such as retirement accounts, affects each party’s tax liability.
What Are the Benefits of Having a Marital Settlement Agreement in Arlington Heights, IL?
A marital settlement agreement offers many advantages for both parties. For example, it simplifies the divorce process and gives couples more control over the terms of their separation.
Lack of Litigation
A major benefit is the ability to avoid long, expensive litigation. Court intervention (such as a trial) requires more attorney fees and court costs. It also adds to the timeline of the divorce.
More Control Over Outcomes
By negotiating their agreement, the parties can decide how to handle their assets and other issues such as child custody. Without a marital settlement agreement, a judge decides these matters. Often, the outcome does not satisfy either party. With an MSA, both spouses get a say.
Clarity and Flexibility
A well-written MSA gives both spouses a clear understanding of their rights and expectations after the divorce. This clarity often prevents confusion over issues such as property division and child support.
Moreover, a marital settlement agreement can be very flexible, unlike a rigid court judgment. Families have unique needs, and couples can customize their agreement.
Reduced Emotional Stress
Divorce can be a tremendous mental and emotional drain. Court battles usually worsen these stresses. By working together on MSAs, couples can minimize conflict and reduce emotional stress for themselves and their children. MSAs lend themselves to mediation, negotiation, and other alternatives to a traditional divorce that involves a court battle.
Common Pitfalls to Avoid in Creating a Marital Settlement Agreement
A marital settlement agreement offers many benefits, but one that is poorly written or not thought out well can lead to problems.
Keeping Quiet About Some Finances
Not providing a comprehensive list of assets, debts, and income can result in an unfair division of property. If a spouse finds out later that the other was not truthful, the divorce case could reopen with steep consequences.
Overlooking the Future
It is easy to focus on the present and forget about the future. However, post-divorce life can be unpredictable. MSAs may need to address issues such as health care, employment changes, or future expenses for children’s college education. Neglecting tax considerations is another common pitfall. Careful planning and wording can prevent negative “surprises” relating to what happens after a divorce settlement agreement is signed.
Using Vague Language
Precise, clear language is important in MSAs. Otherwise, the parties leave themselves open to arguments on custody, asset division, or other matters.
Not Consulting a Divorce Lawyer
Crafting or signing a marital settlement agreement without the help of a divorce lawyer can lead to serious issues. An attorney can ensure the agreement is fair, thorough, and enforceable. He or she can offer assistance on child support, spousal maintenance, division of assets, and other issues.
Also, when your ex wants it all in the divorce, a lawyer can advocate for your best interests and offer guidance on the best steps forward.
You deserve a marital settlement agreement that is fair. Contact us at the Law Offices of Roger W. Stelk to talk about your needs.
