A validly executed settlement agreement, entered before divorce proceedings begin, can make separating from your spouse or partner easier, and remove uncertainty about your family's future. The Michigan family law attorneys at Bebout, Potere, Cox & Bennion, P.C., have a reputation for helping individuals and families across Southeast Michigan resolve their domestic issues through out-of-court negotiations and support.
Separation Agreements vs Settlement Agreements
While the two terms are often used interchangeably, separation agreements and settlement agreements are slightly different. A separation agreement is a contract signed by two parties (usually spouses, but it could also be cohabiting parents), that lays out how the parties will handle shared issues after a separation. It could include:
- Custody of children in common
- Parenting time schedules
- Child support and spousal support
- Payment of marital bills and expenses (such as the mortgage on the marital home)
- Division of shared property or financial accounts
- Health and Life Insurance coverage post-separation
- Payment of attorney fees at the time of divorce
A separation agreement entered before the start of a divorce can reduce the time, energy, emotional weight, and expense of divorce proceedings.
In contrast, a settlement agreement is a negotiated resolution to a pending divorce action. The biggest difference is whether the contract is signed before or after the divorce begins. Sometimes a separation agreement will leave certain terms open for later determination by the Michigan family courts at the time the divorce is entered. For example, custody, parenting time, child support, and spousal support (unless the parties agree to a non-modifiable spousal support award), may all be reconsidered at the time of divorce based on the best interests of the children at that time. Because a separation agreement resolves that divorce action, it is considered final unless there are later proper cause or a change in circumstances to justify modifying the child-related or spousal support terms.
Why You Should Sign a Separation Agreement Before Starting a Divorce
The first reason to consider a separation agreement prior to divorce is that it removes hostility from your separation. If you don't plan on getting a divorce right away, a separation agreement can lay the ground rules for how you and your former spouse will behave until the divorce is entered. Because divorce is always a stressful time, removing those day-to-day issues and resolving them ahead of time can reduce conflict within litigation, and can reduce the impact of the divorce on your children.
A separation agreement also gives you and your former spouse or partner control over the terms of your agreement. Unlike a trial – where the judge has the final say – you and your spouse are the final decisionmakers in any contract negotiations. That means you can custom tailor the agreement to meet your family's needs, from accommodating a child's special needs, to simply accounting for travel times and work schedules.
A separation agreement is a legally enforceable contract, binding on both parties according to its terms. If your former spouse or partner fails to meet the terms of the Separation Agreement (for example, by failing to pay child support or by allowing your home to go into foreclosure), you can file an action in court to enforce it. While it cannot terminate your marriage (you need a Judgment of Divorce to do that), it can give you a way to hold your former partner accountable and ensure you and your children have the support you need to live on your own.
When the time comes to start divorce proceedings, a validly executed separation agreement can also streamline the process and remove private and confidential issues from the public eye. Michigan divorce courts are open to the public, as are their records (in most counties). This means, by negotiating these issues in advance, you can avoid having your private affairs presented publicly in open court.
What to Consider Before Signing a Separation Agreement
While separation agreements can be very beneficial, the best are entered into with both parties fully informed, and after careful consideration of the language, and the legal effects of the contract's terms. Before signing a separate agreement, you should be certain that you understand:
- Your family's assets and debts
- Your obligations under the agreement
- Your children's schedules under the parenting time agreement
- What each party will pay or receive in support
- How the agreement affects both possession and ownership of specific properties (including the marital home and vehicles)
- Who will pay for what expenses post-separation
- What effect the agreement will have on any future divorce or custody litigation
- Your rights to enforce the agreement
Get Help Negotiating a Separation Agreement from a Michigan Family Lawyer
At Bebout, Potere, Cox & Bennion, P.C., we care about you and your family. We help individuals and families in Rochester Hills, Rochester, Troy, Lake Orion, Oxford, Oakland County, Macomb County and throughout Southeast Michigan come to separation agreements that address the emotional, financial, and practical issues around custody and divorce. Call us at 248-651-4114 or contact us here to speak to an attorney.