Property division is often one of the biggest issues in a Texas divorce. If you and your spouse are able to agree on how to split things, it makes the process easier. Once your divorce is final, a property settlement agreement is created and distributed to both of you.
Understanding property settlement agreements
A property settlement agreement is necessary when a married couple gets a divorce. It outlines all the assets and property each person will receive once the divorce has been finalized. Everything that’s subject to property division is itemized. The document may include anything of value such as furniture, trusts, money from savings accounts and even proceeds from life insurance policies. The property settlement agreement also explains financial support orders one spouse pays to the other and other things like shared debt and how it should be handled.
Information included in property settlement agreements
Anything that’s covered in a property settlement agreement between divorcing spouses is final and considered a contract. As a result, the court cannot modify anything. Things included in the agreement include distribution of assets and how much each person will receive. Assets may include anything jointly acquired and owned during the marriage, real property, personal property and trust funds.
Debt division is covered in a property settlement agreement and outlines how much and what specific debt each spouse is responsible for paying. For example, one spouse may agree to make remaining car payments while the other pays off credit card debt.
Tax and alimony payments are often included in property settlement agreements. In terms of the latter, details include how much money and how long payments will be made. Insurance matters and retirement accounts are also addressed.
Property settlement agreements cover anything property- and assets-related. Meanwhile, if the divorcing couple has children, any issues surrounding child support and custody are separate and decided by the court.