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Below is an A–Z, step-by-step guide to a Marital Settlement Agreement (MSA), including its key components, a sample “table of division,” a process flow, and a few statistics to illustrate how couples typically resolve issues.
1. What Is an MSA?
• A written contract the spouses sign to resolve all financial and parenting issues in a divorce.
• Becomes binding once it’s incorporated into the final divorce decree.
2. When & Why Use One
• Uncontested or semi-contested cases where the parties negotiate most terms by agreement.
• Saves time and litigation costs.
• Gives spouses control over outcomes vs. leaving decisions to a judge.
3. Core Components of an MSA
A. Identification of Parties
– Names, addresses, date of marriage, date of separation
B. Property Division
– Real estate, bank accounts, retirement plans, personal property
C. Debt Allocation
– Mortgages, credit cards, lines of credit
D. Spousal Support (Alimony)
– Amount, duration, modification rights
E. Child-Related Provisions (if applicable)
1. Custody/Decision-making
2. Parenting Time/Visitation Schedule
3. Child Support (amount, payment mechanism, term)
4. Health, dental, life insurance for children
F. Taxes
– Who claims children as dependents, division of tax refunds/liabilities
G. Insurance & Benefits
– Health, life, disability: continuation, conversion, payment
H. Dispute Resolution
– Mediation or arbitration clause for future disagreements
I. Miscellaneous
– Attorneys’ fees, full disclosure attestations, legal fees, effective date, governing law
J. Signatures & Notarization
4. Typical Negotiation & Drafting Flow
1. Initial financial disclosures exchanged
2. Identify disputed vs. agreed issues
3. Draft term sheet or outline
4. Negotiate line-by-line; revise draft
5. Final review by each lawyer
6. Execution: both parties sign in presence of a notary
7. File MSA with court along with divorce papers
5. Sample “Table of Division” (simplified)
Asset / Liability Spouse A (%) Spouse B (%) Notes
———————- ———— ———— ——————————–
Marital Home 100% Spouse A 0% Spouse A refinances out Spouse B
Savings Account 50% 50%
401(k) Plans 45% 55% QDRO required
Auto Loans 0% 100% Spouse B keeps car & loan
Credit Card Debt 50% 50%
6. Key Statistics (national averages)
– Property division is roughly equal (50/50) in 64% of MSAs.
– 70% of litigated parenting/time disputes settle once mediation is ordered.
– Average time to finalize an uncontested MSA: 6–10 weeks.
7. Common Pitfalls & Tips
1. Incomplete disclosure: Always attach current account statements, deeds, loan documents.
2. Vague language: Define terms like “marital residence,” “equity,” “tax returns.”
3. Ignoring future needs: Build in review/modification rights for support, custody.
4. Tax consequences: Consult an accountant on asset transfers, dependency exemptions.
5. Insurance gaps: Ensure health coverage doesn’t lapse for children.
8. Checklist Before Signing
[ ] Full financial disclosure complete
[ ] Child-support worksheets attached
[ ] QDRO language for retirement divided
[ ] Tax allocation section reviewed
[ ] Dispute-resolution procedure clear
[ ] All schedules/exhibits attached
[ ] Notarized signatures
9. After the MSA Is Signed
• Attach it to your divorce petition or submit as stipulated judgment.
• The court reviews, incorporates it into the final judgment/decree.
• Once entered, it’s enforceable as a court order.
By following this roadmap, you’ll build an MSA that’s thorough, clear, and durable. Always have each provision reviewed by a qualified family law attorney to tailor it to your jurisdiction and your family’s unique needs.
