Understanding Marital Settlement Agreements in New Jersey
ByJillian Frost Kalyan, Esq.May 12, 2025
Navigating a divorce can be one of the most challenging experiences in life, both emotionally and legally. Among the key elements to consider is the Marital Settlement Agreement (“MSA”), sometimes called a Property Settlement Agreement (“PSA”), a crucial document that outlines the terms of the divorce. Below is an explanation of what an MSA is, its importance, and what to include in it. When a mediator writes it after mediation, it’s called a “MOU” -Memorandum of Understanding.
What is a Marital Settlement Agreement?
Only a Judge can divorce individuals from the bonds of matrimony, but individuals are free to come to many other agreements on their own instead of having a judge decide. Many couples figure it out themselves, or with the help of attorneys and/or a mediator. Once they have an agreement in concept, the written expression of this typically is written into a contract. A Marital Settlement Agreement is a legally binding contract created between two spouses who are divorcing. It outlines the specific terms regarding various aspects of the divorce, such as division of property, alimony, child support, and child custody and parenting time. The MSA is typically negotiated and drafted during the divorce proceedings, and once signed by both parties, it is incorporated into a Judgment of Divorce and becomes a court order.
Importance of a Marital Settlement Agreement
Clarity and Structure: The MSA provides a clear framework for how assets and responsibilities will be divided, reducing ambiguity and potential disputes. By detailing each party’s rights and obligations, it helps both spouses understand their positions moving forward.
Saving Time and Money: By reaching an agreement outside of court, couples can save on legal fees and avoid lengthy court battles. An MSA can expedite the divorce proceed, allowing both parties to move on with their lives more quickly.
Control Over Outcomes: Negotiating an MSA allows couples to have more control over the terms of their separation. Unlike a decision made by a Judge, the MSA reflects the wishes and agreements of both parties, which can lead to more satisfactory outcomes.
Future Implications: The MSA can address future contingencies, such as changes in income or circumstances affecting child custody or support. The forward-thinking approach can help prevent future disputes and ensure that both parties understand their obligations.
Key Components of a Marital Settlement Agreement
When drafting an MSA, it’s important to consider the following components:
Division of Assets: Clearly outline how marital property will be divided, including real estate, bank accounts, retirement funds, and personal belongings. It’s crucial to distinguish between marital and separate property.
Debts and Liabilities: Specify how much each party will be responsible for any marital debts, such as mortgages, credit card debt, and loans. Clarity here can prevent disputes down the line.
Alimony (Spousal Support): If applicable, define the terms of alimony including duration, amount, and conditions for modification.
Child Custody and Support: For couples with children, the MSA should detail custody, parenting time (visitation) schedule, and child support obligations. Addressing these issues comprehensively is vital for the well-being of the children involved.
Dispute Resolution: Include a clause outlining how disputes related to the MSA will be handled in the future, whether through mediation, arbitration, or court.
A Marital Settlement Agreement is a critical document in the divorce process, offering clarity, structure, and control over the end of the marriage. By taking the time to negotiate and draft a comprehensive MSA, and with careful drafting by experienced attorneys or a mediator, couples can reduce conflict and set a clear path for their future. If you’re considering a divorce or need assistance in drafting a Marital Settlement Agreement, consulting with an experienced matrimonial law firm can ensure your interests are protected and your agreement is legally sound.