The Oregon Divorce Blog

I often have clients ask me how they can lock in an agreement with their spouse regarding how to divide up their assets in an impending divorce. Usually these clients have not yet filed for divorce. The answer is to execute a marital settlement agreement. Marital settlement agreements can also be used in the collaborative divorce process to formalize an agreement between spouses prior to finalizing their divorce.

A marital settlement agreement is a contractual agreement entered into by a husband and wife prior to their divorce. The settlement reached can be much more detailed and individualized than a judge’s ruling and can include provisions that a judge would not legally be allowed to include. The parties can work with their attorneys to make sure that their individual needs are accounted for while providing a fair division of the parties’ assets and debts.

A marital settlement agreement can also be used by parties who want to have a trial separation, but also be certain of how a divorce will proceed if they are unable to save their marriage. Clients will often want to file for a legal separation in order to preserve their rights while still being able to stay on the other spouse’s health insurance. Rather than going thorough that process, they can sign a marital settlement agreement and wait to file for divorce until the health insurance issue can be rectified.

A court is not required to approve the parties’ marital settlement agreement. A court will almost always approve the agreement provided that the agreement is fair and that both parties knew what they were agreeing to. In order for the parties to be as secure as possible that the agreement will be approved by the court they must disclose truthfully all of their financial information to the other spouse, must actually abide by the terms of the agreement during the time between signing the agreement and filing for divorce, and they must actually get divorced in a reasonable period of time. If, for instance, the parties wait many years to divorce, a court would be less likely to approve the agreement.

With the passage of the new domestic partnership legislation in Oregon, domestic partners may be able to use marital settlement agreements to formalize issues prior to dissolving their domestic partnership.

In conclusion, martial settlement agreements provide a great way for clients to divorce in an amicable and mutually beneficial manner.

Good lawyers use tools other than the courtroom to get results for clients. A trial is one way to resolve your case, but not necessarily the best way. Good lawyers try to settle their cases after they have analyzed the case. A lawyer that pushes court as your only option may be doing you a disservice. The majority of contested divorces settle without a trial, and there are several tools available to assist you in the process. Once you have done your homework, and know what a court may do at trial, consider the following options:

1. Judicial Settlement Conference: A judicial settlement conference is a meeting, guided by a judge, to help parties settle a lawsuit. In some counties they are mandatory, while in others the parties must request them. One benefit is cost. The court does not charge for the settlement conference, but your lawyer will charge you for his or her time. Usually, what happens at a settlement conference is confidential to make sure parties feel good about making their best offers. What happens at the conference? Usually the judge will meet with both sides to see where there is middle ground. The judge may help the parties and lawyers by giving their opinion of what should happen in a case. If the parties reach an agreement, the court can put the settlement on the record on the spot.

2. Mediation: Mediation is a way of resolving a dispute in which an impartial person (the mediator) helps you discuss your case and, if possible, reach a voluntary agreement. The mediator helps you think about your needs, clarify your differences, and find common ground.

Oregon courts require mediation for custody and parenting time disputes. The benefit of county mediation is that it is free. Lawyers do not attend. The downside is that you likely cannot resolve your case if it involves financial or property issues. Also, your county mediation department may be overwhelmed with cases, and they may not have enough time or energy to get both parties to “yes.”

Good lawyers steer clients towards private mediator, if appropriate for the case. In private mediation, the parties jointly hire an expert to help resolve a dispute. The expert is usually a retired judge or experienced divorce lawyer. Usually the lawyers attend to provide guidance. The parties pay the mediator for his or her services (the best mediators in Oregon charge $250-$300 per hour) and pay for their lawyer’s time. While expensive, if you reach a resolution, it is generally less expensive and less stressful than having a trial. Unlike court, you have the opportunity to reach a flexible and creative solution to your dispute. Most important, the result is voluntary, rather than imposed on you by a judge you just met.

Make sure to talk to your lawyer about your dispute resolution options other than the courtroom. While a courtroom may be necessary, you have other options. Talk about these options with your lawyer to see if they are right for you.