What Is a Tennessee Marital Dissolution Agreement?
You may have heard that most civil lawsuits are settled, meaning they do not go to trial. Frequently, that is because the dispute has been resolved through some form of alternative dispute resolution, or ADR. One form of ADR is mediation, another is negotiation. Both are commonly used in Tennessee divorce. Therefore, spouses can avoid trial by settling their differences on the issues presented in the case.
What is a Tennessee marital dissolution agreement or MDA?
A marital dissolution agreement (MDA) is the result of the parties’ divorce settlement discussions, communicated through their respective family lawyers, before and during the Tennessee divorce. Truth be told, the settlement of issues is always possible no matter how contentious the divorce or child custody case may be.
Fear as a Great Motivator
They say fear is a great motivator. And it can motivate the parties to stay in control of how their children will be raised, how their property will be divided, how much support will be needed, and more, by making their own decisions. Bear in mind that any issue the parties do not resolve by agreement will have to be decided by the judge (unless the couple reconciles or the case is otherwise dismissed).
What Issues Are Open for Settlement?
Because the settlement process is an essential aspect of every couple’s divorce, we dedicated a web page to the kinds of agreements that may be included in an MDA following negotiations and mediation:
Tennessee Divorce Settlement | Marital Dissolution Agreement or “MDA”
Here is a non-exclusive list of provisions just to give you an idea of what the MDA is all about:
1. Child Custody:
Custody, designation of the primary residential parent, parenting time, and related child-rearing concerns as stated in the permanent parenting plan.
2. Health Insurance:
How health insurance will be managed so the child remains covered, including application of COBRA coverage.
3. Child Support:
Child support payment terms and any supplemental funds for an educational trust or other special situation.
4. Spousal Support:
Alimony for the less-propertied spouse, whether it be alimony in solido, alimony in futuro, transitional alimony, or rehabilitative alimony (or combination thereof).
5. Other Insurance:
Maintaining disability insurance and life insurance on the obligor-spouse so that support payments do not lapse because of injury, illness, or death of the payor. One party might insure the marital home until it is sold or pay the other spouse’s automobile insurance policy for an express period.
6. Insolvency Issues:
Support and asset protection in the event of obligor-spouse’s bankruptcy.
7. Complex Assets:
Business ownership transfers, valuations, and other complex financial arrangements.
8. Real Estate:
How real property will be divided between the spouses.
9. Personal Property:
Division of the couples’ personal property, right down to who gets which car, what collectibles, which bedroom set, and so on.
10. Debt Allocation:
Assignment of marital debts on credit cards, automobile loans, home mortgages, and land contracts.
11. Attorneys’ Fees:
Although the parties have their own divorce lawyers, they can agree to delegate responsibility for paying attorneys fees. The payment of other professional fees can be agreed to as well, such as those required for forensic evaluations.
12. Retirement Plans:
Division of retirement investments (which may require a qualified domestic relations order, or QDRO, to implement).
13. Tax Liability:
How a tax refund will be divided. And, perhaps, the party who will pay any income taxes owed on alimony-income received after the divorce is final.
In the earliest stages of divorce, all of these legal and financial considerations may be overwhelming. Diminish your fears with knowledge. There is a lot of information available, so keep reading and learning and digesting what you need to know. Keep a list of questions to ask your divorce lawyer. Also, take a few minutes to peruse the Tennessee Divorce Process: How Divorces Work Start to Finish.
