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Simple English definitions for legal terms
property settlement agreement
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A quick definition of property settlement agreement:
A property settlement agreement is a legal document that determines how a couple's property and debts will be divided when they get divorced. It can be a court judgment or a contract that is incorporated into a divorce decree. This agreement includes the distribution of assets and debts between the divorcing parties. It is also known as a property division or division of property.
A more thorough explanation:
A property settlement agreement is a legal document that outlines the division of assets and debts between two parties who are getting a divorce. It can be either a court-ordered judgment or a contract that is incorporated into a divorce decree.
For example, if a couple owns a house, cars, and bank accounts, a property settlement agreement would determine how those assets are divided between the two parties. It would also determine how any debts, such as a mortgage or credit card debt, are divided.
Another example would be if one party owned a business, the property settlement agreement would determine how the business is divided or valued.
Overall, a property settlement agreement is important in ensuring a fair and equitable distribution of assets and debts between two parties who are getting a divorce.