Marriage is intended to be a lasting partnership, but when a relationship reaches its end, the focus must shift from preserving the marriage to protecting each individual’s future. One of the most effective tools for bringing clarity, stability, and finality to the divorce process is a carefully negotiated Marital Settlement Agreement, commonly referred to as an MSA.
In New Jersey, the MSA is often the foundation of a divorce judgment. It is a legally binding contract that outlines how spouses will resolve the financial and family related issues arising during the divorce. Once incorporated into a Final Judgment of Divorce, the agreement becomes enforceable by the court includes the following:
A. Financial Assets and Liability Considerations
A comprehensive MSA begins by clearly identifying the parties and confirming that the agreement governs their rights and obligations. From there, it addresses the equitable distribution of marital assets and liabilities, including real estate, bank accounts, businesses, investments, retirement accounts, and debts. Clarity in these provisions is critical. When assets and liabilities are fully disclosed and carefully allocated, both parties gain certainty and peace of mind.
B. Almony and Spousal Support
Alimony and spousal support are central components of many MSAs. Where there is a disparity in income or earning capacity, the agreement should define the type, amount, duration, and terms of support with specificity. For couples with children, the MSA plays an especially important role. Custody arrangements, parenting time schedules, decision-making authority, and child support obligations should be tailored to promote stability and serve the best interests of the children.
C. Health and Other Insurance
Health insurance and other benefits are another critical consideration that is frequently overlooked. The MSA should clearly explain how coverage will be maintained for spouses and children following the divorce. In addition, divorce often carries significant tax consequences. Real estate assets, whether a marital residence or investment property, require special attention as well. The agreement should clearly state whether a property will be sold, transferred, or retained by one party, and on what terms.
Ultimately, the MSA is only as effective as the care taken in its preparation. Poorly drafted agreements often lead to enforcement issues and renewed litigation. Working with experienced family-law counsel ensures that an MSA is comprehensive, enforceable, and aligned with each party’s long-term interests, allowing both spouses to close one chapter of their lives and move forward with confidence.
If you need assistance with your divorce, contact Porter Thomas Grabell & Baumwoll, P.C. today for a free consultation. Our attorneys will help you understand your rights and fight for the recovery you deserve.
