If there are assets, debts, and income to divide in a divorce, a comprehensive Marital Settlement Agreement (also known as a post-nuptial agreement) to detail the parties’ agreement should always be prepared prior to entry of the divorce decree. It is important to have a Marital Settlement Agreement (MSA) to spell out the terms in detail. Some of these reasons include but are not limited to the following:
- Each spouse clearly knows their obligations regarding which assets and debts each will be retaining.
- Ensuring your former spouse complies with the terms and providing enforcement procedures if he/she does not.
- A financial institution may require a signed agreement prior to transferring assets
- A real estate settlement agent may require a signed agreement prior to distributing real estate proceeds
- A mortgage company may require a signed agreement before allowing a mortgage/loan refinance to proceed to settlement
- A lender may require a signed agreement to transfer debts
- An employer or other institution may require a signed agreement to change beneficiary designations