A More Sophisticated Marital Settlement Agreement

Let’s take a look:

MARITAL SETTLEMENT AGREEMENT

            THIS AGREEMENT is made this ______ day of ____________, 201__ between ****** hereinafter referred to as “the Wife” or “the Mother”, and **********, hereinafter referred to as “the Husband” or “the Father”.

R E C I T A L S:

            A.         The parties were married on __________, 20___ in ___________.

            B.         There was ____  child/children born of the marriage, namely: ********, born ____________, 20___ and  ********, born ____________, 20___.

            C.         Irreconcilable differences have arisen between them and they separated on ________________, 20__.  This Agreement is not entered into in order to facilitate a separation or divorce nor is it an Agreement to obtain a divorce.

            D.         The parties believe there is no hope of reconciliation, they desire to continue to live separately, they desire to settle all property rights including the right to equitable distribution, all claims, obligations, rights of support, custody and visitation if applicable.

            IN CONSIDERATION of the promises and mutual covenants and agreements hereinafter contained and other good and valuable consideration the receipt of which is acknowledged the parties agree as follows:

  1. No Interference.  The parties shall hereafter be free from interference, authority and control, direct or indirect, by the other.  Neither party shall molest, harass, annoy or in any way interfere with the other, and each of the parties hereto shall have full and complete independence of action and conduct in all business and social relations, and the public and private activities of each of them shall be entirely free from all restraint, supervision, control and censure by the other.
  1. Understanding of Parties.  Each of the parties has given full and mature thought to the making of this Agreement and all of the obligations contained herein, and each of the said parties understands that the agreements and obligations assumed by the other are assumed with the express understanding and agreement that they are in full satisfaction of all obligations which each of the said parties now has or might hereafter have toward the other.
  1. Custody/Visitation.
  1. Child Support.  Effective the first day of the month following the signing of this Agreement, the Husband shall pay to the Wife for the support and maintenance of the parties’  child the sum of ______________ Dollars ($________.00) per month payable on the first day of each month. The amount of child support shall be payable until such time as the child reaches the age of eighteen (18), dies, becomes married or is otherwise emancipated, unless sooner modified by a court of competent jurisdiction; provided, however, that in the event the child has attained the age of eighteen (18) and is still a full time high school student residing with the Wife then in that event child support shall continue until such child graduates from high school or reaches age nineteen (19), whichever event first occurs.
  1. Spousal Support
  1. Debts.  Except as specifically provided elsewhere in this Agreement, the parties shall be responsible for their debts as follows:
  1. Debts Prior to this Agreement.  Each party shall be solely responsible for the payment of his or her outstanding debts incurred prior to the date of this Agreement and shall fully defend, indemnify and hold the other harmless from any liability thereon.  Each party represents that he/she is unaware of any joint debt not otherwise disclosed herein.
  2. Debts Incurred Subsequent to this Agreement.  Each party shall be solely responsible for the payment of his or her debts incurred subsequent to the date of this Agreement and shall fully defend, indemnify and hold the other harmless from any liability thereon.  Neither party shall incur any debt or obligation on the other party's credit or do anything for which the other party could be legally held liable.
  3. Credit Cards.  All credit cards or charge accounts for which the other party could be obligated shall be canceled, and each party shall establish charge accounts solely in his or her name after the date of this Agreement.  Each shall fully defend, indemnify, and hold the other harmless from any liability arising out of any credit card obligation incurred by that party prior to the date of this Agreement.  To the extent there are balances due and owing not otherwise provided for in this Agreement, then the party incurring such obligation shall be responsible for such debt.
  1. Tangible Personal Property
  1. Real Estate.
  1. Vehicles
  1. Wife’s Vehicle.   The Wife shall become the sole owner of the _______.  The Husband shall take immediate steps to insure the proper conveyance of title to the Wife, unless title cannot be transferred due to the existence of a security instrument for an outstanding loan.   If title cannot be transferred now due to the existence of a security instrument for an outstanding loan, then title shall be transferred as soon as the outstanding loan is paid in full.   The Husband shall forthwith forward to the Wife all mail he receives (whether addressed to Husband, Wife or both) that pertains to the ___________ (including but not limited to inspections, insurance, personal property tax, registration, etc.).  The Husband shall cooperate in signing all papers necessary to properly register the ___________, and to otherwise allow it to be operational; provided, however, that the Wife shall be solely liable for any financial obligation and the Husband shall not have any financial obligation with respect to the _________.  Until title is transferred, the Wife shall have exclusive use and possession of the _______. The Wife shall be solely responsible for all liabilities in connection with the _______ hereafter including but not limited to loan payments (if any), insurance, maintenance, repairs, personal property taxes, and registration fees.
  2. Husband’s Vehicle.  The Husband shall become the sole owner of the _______.  The Wife shall take immediate steps to insure the proper conveyance of title to the Husband, unless title cannot be transferred due to the existence of a security instrument for an outstanding loan.   If title cannot be transferred now due to the existence of a security instrument for an outstanding loan, then title shall be transferred as soon as the outstanding loan is paid in full.   The Wife shall forthwith forward to the Husband all mail she receives (whether addressed to Husband, Wife or both) that pertains to the ___________ (including but not limited to inspections, insurance, personal property tax, registration, etc.).  The Wife shall cooperate in signing all papers necessary to properly register the ___________, and to otherwise allow it to be operational; provided, however, that the Husband shall be solely liable for any financial obligation and the Wife shall not have any financial obligation with respect to the _________.  Until title is transferred, the Husband shall have exclusive use and possession of the _______. The Husband shall be solely responsible for all liabilities in connection with the _______ hereafter including but not limited to loan payments (if any), insurance, maintenance, repairs, personal property taxes, and registration fees.

 

OR

  1. Vehicles.  The Husband shall remain the sole owner of the __________ and he shall be responsible for all liabilities in connection with his vehicle hereafter, including payments, insurance, taxes, etc.  The Husband agrees to fully defend, indemnify and hold the Wife harmless from any liability in connection with the ______________.

The parties acknowledge that the _______ is presently titled in the Husband's name and the Certificate of Title is held as collateral by the lien holder.Subject to the provisions herein, the Wife shall have exclusive use of the _______ and she shall be responsible for all liabilities in connection with her vehicle hereafter, including payments, insurance, taxes, etc.As soon as the car loan associated with the ______ is paid in full, and the lien released by the lien holder, the Husband shall transfer title to the Wife.Notwithstanding the foregoing, if the Wife fails to pay the car loan for the ______ according to its terms, then the Wife shall no longer be entitled to the use of the _______ and the right to use and ownership shall revert to the Husband and he is authorized to promptly sell the vehicle in order to satisfy the balance then remaining on such car loan.The Wife agrees to fully defend, indemnify and hold the Husband harmless from any liability in connection with the ________.

 

  1. Taxes
  1. Bank Accounts.  The proceeds of all bank accounts have been divided to the satisfaction of the parties and each individual may keep and retain his or her own separate bank account or bank accounts.

OR

  1. Joint Bank Accounts.  The parties presently maintain a joint checking and savings accounts at __________ with respective approximate balances of $________ and ____________.  After the date of this agreement, neither party shall withdraw from or draw checks on either account, except to close the accounts as hereinafter provided. The joint savings account shall be closed immediately and the proceeds divided equally between the parties. After all outstanding checks have cleared, the joint checking account shall be closed immediately and the proceeds divided equally between the parties. 

OR

  1. Separate Bank Accounts
  1. Husband’s Separate Deposit Accounts.  The Husband shall remain the sole owner of all deposit accounts (including but not limited to checking, savings, money market, credit union and certificate of deposit accounts) titled in his sole name, free of all right, title, interests and claims of the Wife.
  1. Wife’s Separate Deposit Accounts.  The Wife shall remain the sole owner of all deposit accounts (including but not limited to checking, savings, money market, credit union and certificate of deposit accounts) titled in her sole name, free of all right, title, interests and claims of the Husband.

 

OR

 

  1. Bank Accounts.  The parties presently maintain a joint account at _____________ with an approximately balance of $________.  The proceeds of this account shall be divided equally between the parties and the account shall thereafter be closed.  Each party shall become the sole owner of the proceeds of any bank account currently held in his or her separate name.
  1. Custodial Accounts.   The parties acknowledge that the Husband is listed as the custodian on a savings account for each child.  The Husband shall remain the custodian on each of the accounts and shall administer the accounts in accordance with the terms of the account and the law governing custodial accounts.
  1.  Retirement/Profit Sharing Plans.  The parties acknowledge that the Wife participates in a 401(k) plan through her employment and that the Husband participates in a 401(k) plan through his employment. The parties further acknowledge that the Wife presently maintains an individual retirement account (“IRA”) and the Husband presently maintains an IRA. The Husband waives all rights, title and interest, including the right to equitable distribution, with respect to the Wife’s 401(k) plan and IRA. The Wife waives all rights, title and interest, including the right to equitable distribution, with respect to the Husband’s 401(k) plan and IRA. 

OR

  1.  Retirement.  Each of the parties shall become the sole owner of his or her own pension or other defined benefit retirement plan; 401(k), 403(b), profit sharing plan, thrift savings account, or other defined contribution plan; individual retirement account(s); deferred compensation plans and any other form of retirement benefit/asset (hereinafter collectively referred to as “Retirement Plans”) which such party currently has or may receive in the future, free from any claim by the other, including but not limited to the right to equitable distribution pursuant to § 20-107.3 of the Code of Virginia, 1950, as amended.

Each party expressly waives any right either may have under any Federal or State law as a spouse to participate as a payee or beneficiary of any interest the other may have in his/her Retirement Plans including, but not limited to, the right either spouse may have to receive any benefit in the form of a lump-sum death benefit, joint and survivor annuity, or pre-retirement survivor annuity pursuant to any State or Federal law or Plan provision, and each party hereby expressly consents to any election made by the other, now or at any time hereafter, with respect to the recipient and the form of distribution or payment of any benefit at any time.Each party shall, within (5) days of the request by the other party, execute such documents as may be necessary in order to effectuate the purposes of this Paragraph.

If Husband is unable for any reason to change the beneficiary of the death benefits or survivor benefits of any of his Retirement Plans, or if Husband files an election or designation of beneficiary subsequent to the date of execution of this Agreement but such election or designation of beneficiary is ineffective and the benefits subject to such election or designation are, in fact, payable to Wife, she shall, at the sole discretion of Husband’s personal representative, either disclaim any entitlement or pay the net after-tax benefits over to the beneficiary designated by Husband in the otherwise ineffective election or designation or, if there is no such election or designation, the default beneficiary under the Retirement Plan(s) (other than the Wife).If Wife is unable for any reason to change the beneficiary of the death benefits or survivor benefits of any of her Retirement Plans, or if Wife files an election or designation of beneficiary subsequent to the date of execution of this Agreement but such election or designation of beneficiary is ineffective and the benefits subject to such election or designation are, in fact, payable to Husband, he shall, at the sole discretion of Wife’s personal representative, either disclaim any entitlement or pay the net after-tax benefits over to the beneficiary designated by Wife in the otherwise ineffective election or designation or, if there is no such election or designation, the default beneficiary under the Retirement Plan(s) (other than the Husband).

OR

20.Retirement.   The parties acknowledge that the Wife participates in the 401(k) Savings Plan (a defined contribution plan) through her employment with ________. The Wife represents that the current balance in her 401(k) Savings Plan is approximately $_______.00. The Husband shall receive the sum of $_______.00 from the Wife’s 401(k) Savings Plan (said transfer to be by Qualified Domestic Relations Order). The Wife shall not withdraw, transfer, borrow from or otherwise further encumber her 401(k) plan until distribution is made to the Husband. The Husband shall be responsible for all income taxes and penalties, if any, on the 401(k) funds paid to the Husband, whether levied as a result of transfer to the Husband or as a result of his cashing in the funds so transferred to him after he receives same. Husband’scounsel shall prepare the proposed QDRO, and, upon entry by the court, shall submit it to the Plan Administrator for qualification. The QDRO shall be in the form substantially in accordance with the draft QDRO attached hereto as Exhibit B and incorporated herein by reference.

 

  1. Health Insurance/Medical Expenses.  Each party shall be responsible for providing his/her own health insurance coverage and each party shall be responsible for his/her own unreimbursed and uninsured medical expenses. 

OR

 

  1. Health Insurance
  1. For the Parties.   The Husband shall maintain in full force and effect his existing medical insurance policy on behalf of the Wife, provided it remains a benefit of his employment.  The Husband’s obligation to maintain such medical insurance shall terminate upon the entry of an Order of Divorce. Any insurance reimbursements received by the Husband for amounts paid by the Wife shall be forwarded to the Wife within ten days of receipt by the Husband. If the Husband receives a new health insurance card prior to the entry of an Order of Divorce, he shall provide the Wife with a new card within ten days of receipt.  The Husband shall inform the Wife immediately if and when he is no longer employed by his current employer, to enable the Wife to obtain continuation of health care coverage.  The Husband shall be responsible for providing his own medical insurance coverage. After entry of an Order of Divorce, the Wife shall be responsible for providing her own medical insurance coverage.  The Husband shall immediately forward to the Wife all notices he receives that pertain to the Wife’s right to elect continued medical insurance coverage through COBRA.
  1. For Children.   The Husband shall maintain a policy of  medical insurance on behalf of each child for so long as there is a legal duty of support with respect to such child.  Any insurance reimbursements received by the Husband for amounts paid by the Wife shall be forwarded to the Wife within ten days of receipt by the Husband. If the Husband receives a new medical insurance card at any time that he has an obligation to provide medical insurance for the children or a child, he shall provide the Wife with a new card within ten days of receipt.
  1. Modification.  The Husband’s obligation to provide health insurance for the children shall be subject to modification by a court of competent jurisdiction in the event of a material change in circumstances.

OR

  1. Health Insurance.  Each party shall be responsible for providing his/her own health insurance.  The Husband/Wife shall maintain a policy of  health insurance on behalf of the parties’ children for so long as there is a legal duty of support with respect to each child, or until such health insurance is no longer a benefit of the Husband/Wife's employment, whichever first occurs. The provision regarding health insurance for the children is subject to modification by a court of competent jurisdiction. The cost of the health insurance shall be considered in calculating child support pursuant to § 20-108.2 of the Code of Virginia.

 

OR

  1. Health Insurance.  The Husband shall maintain in full force and effect his present health insurance policy on behalf of the Wife, but the Wife shall pay to the Husband the additional cost of her coverage.  The additional cost to the Husband to carry the Wife on his insurance policy is presently $_____ per month.  The Wife shall pay the sum of $_____, or such increased sum as hereinafter provided, to the Husband on the ____ day of each month, commencing ____________, 20___ and continuing on the ____ day of each month thereafter until termination of the Husband’s obligation to provide such insurance coverage.  In the event of an increase in the cost of such health insurance, the Wife shall pay the Husband the cost directly attributable to her coverage.  The Husband’s obligation to maintain such health insurance coverage for the Wife shall terminate upon the happening of any of the following events, whichever first occurs: 

a.         Entry of the Final Decree of Divorce.

b.         The Wife obtaining her own health insurance coverage.

c.          The Wife’s failure to timely pay the cost of her health insurance coverage, as previously provided herein.

The Husband shall maintain a policy of health insurance on behalf of the minor children until each child reaches the age of eighteen (18), marries, dies or otherwise becomes emancipated, whichever first occurs.

The parties shall be responsible for their own unreimbursed and uninsured health expenses.

  1. Unreimbursed Health Costs
  1. For Parties.  Each of the parties shall be responsible for his or her unreimbursed and uninsured health expenses. 
  1. For Children.   Effective _________, 20___, the parties shall pay medical and dental expenses for ***** and **** in the same proportion as each party’s gross income is to the combined gross income as used in determining the then current child support. According to the child support calculated in this Agreement, the Wife’s income is __% and the Husband’s income is __% of the combined gross income.

The term medical and dental expenses shall be construed broadly and shall include, but not be limited to, medical care, wellness care, orthodontics, dental care, eyeglasses, prescription medication, prosthesis and mental health services whether provided by a social worker, psychologist, psychiatrist or counselor. The obligation to pay such medical and dental expenses shall continue with respect to each child for so long as child support is ordered with respect to such child.

If a party pays a medical or dental expense before an insurance claim is processed, then the other party shall pay his/her percentage share in the form of reimbursement to the payor party within seven (7) days of receipt of the medical/dental bill that shows payment. It shall be the responsibility of the party who advanced the payment of the medical/dental expense to process the insurance claim and any insurance reimbursement proceeds shall be divided between the parties in the same percentages as they paid the underlying medical/dental bill and such insurance proceeds shall be divided within seven (7) days of receipt of the insurance check.

If an insurance claim is processed before any party makes a payment on a medical/dental bill, then the parties shall each pay their percentage share of the medical/dental bill not paid by insurance within seven (7) days of receipt of the Explanation of Benefits form. Each party shall provide the other copies of medical bills and/or explanation of benefit statements in his/her possession within seven (7) days of any request for such documentation by the other  party.

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