A California divorce does not necessarily require a judge to decide every issue at trial. When spouses are able to reach agreements about their property, support, and other disputed matters, those agreements can be documented in a marital settlement agreement.

A marital settlement agreement, often called an MSA, can provide the framework for resolving the financial and other issues in a divorce. Careful drafting matters because the agreement may continue governing the former spouses long after the divorce judgment is entered.

What Can a Marital Settlement Agreement Address?

An MSA can address many of the issues that otherwise would need to be resolved by the family court.

Depending on the case, provisions may address the characterization and division of property, allocation of debts, spousal support, child support, and other financial matters.

The agreement can also contain detailed provisions for particular assets.

For example, if the parties agree to postpone selling a community residence, the settlement agreement can establish terms governing the deferred sale. Retirement benefits may require provisions addressing how the community interest will ultimately be divided.

The objective is to turn the parties’ settlement into clear terms that establish their respective rights and responsibilities.

Why Does Precise Language Matter?

Settlement language can have consequences years after the divorce.

Spousal support is a good example. Depending on the terms of an agreement, the parties may restrict the court’s future ability to modify the amount or duration of support.

That makes a provision stating that support is “nonmodifiable” substantially different from one that leaves support subject to future modification.

Similar concerns can arise with property. A settlement should clearly identify the assets being awarded and explain any obligations necessary to complete the division, such as transfers, equalization payments, sales, or retirement division orders.

Ambiguous language can create future disagreements over what the parties originally intended.

Financial Disclosure Still Matters When the Parties Settle

Reaching an agreement does not eliminate California’s financial disclosure requirements.

Settlement decisions involving property and support should be made with adequate knowledge of the marital finances. Assets, liabilities, income, and expenses may need to be disclosed even when the parties believe they already understand their financial circumstances.

This is particularly important when one spouse has substantially greater access to financial information.

A settlement reached without a complete understanding of the property involved can create problems that might not become apparent until after judgment.

Settlement Can Provide More Control Over the Outcome

At trial, the judge decides the unresolved issues based on the evidence and applicable law.

Settlement gives spouses greater ability to negotiate the terms themselves within the limits of California law. That flexibility can be valuable when the parties want to structure property division or other arrangements in a way that reflects their particular circumstances.

The agreement should nevertheless be drafted with the future in mind. Clear provisions can help ensure that resolving the divorce today does not create avoidable disputes over the meaning or implementation of the settlement later.