Form 18-51

For a mediated settlement agreement, see forms 18-17 and 18-18. For letters cautioning the client against signing an agreement without the attorney’s review, see forms 2-16 and 2-18.

NOTICE: THIS DOCUMENT
CONTAINS SENSITIVE DATA

[Caption. See § 3 of the Introduction in volume 1 of this manual.]

Informal Settlement Agreement

1.Parties

The parties to this Informal Settlement Agreement are [name of party A] and [name of party B].

2.Scope of Agreement

The parties agree to settle all claims and controversies between them, asserted or assert­able, in this case except [specify].

3.Real Estate

1.[[Name of party A]/[name of party B]] will own the property commonly known as [address, city], Texas, and will pay the remaining balance of the mortgage.

2.The property commonly known as [address, city], Texas, will be listed for sale with a real estate agent who is active in the area where the property is located. It will be sold for a price and on terms that are mutually agreeable to the parties. Until the closing of the sale—

a.[[Name of party A]/[name of party B]] will have the exclusive use and posses­sion of the property and will pay all utilities and keep the property maintained and in good repair;

b.[[Name of party A]/[name of party B]] will pay the mortgage payments as they come due; and

c.[[Name of party A]/[name of party B]] will pay the insurance premiums and ad valorem taxes as they come due.

On the sale, the net sales proceeds will be divided [percent] percent to [name of party A] and [percent] percent to [name of party B]. If, after [number] days after the divorce, the parties are unable to agree on a sales price or terms, then either party may apply to the Court for the appointment of a receiver to take possession of the property and sell it and, after the receiver’s fee, to distribute the remaining proceeds in the proportions specified above.

3.[[Name of party A]/[name of party B]] will own the property commonly known as [address, city], Texas, and will pay [[name of party B]/[name of party A]] the sum of [number] dollars ($[amount]) in the following manner:

a.The execution of a vendor’s lien note in the principal sum of [number] dollars ($[amount]), bearing [percent] percent interest per year, payable over a period of [number] months, in equal installments of [number] dollars ($[amount]).

b.The assumption of the remaining balance of the mortgage to [name of mort­gagee].

c.The execution of a deed of trust to secure the vendor’s lien note described in (a.) above and the execution of a deed of trust to secure the assumption of the mortgage described in (b.) above.

4.Personal Property

1.[Name of party A] will own the property listed in Schedule A.

2.[Name of party B] will own the property listed in Schedule B.

5.Motor Vehicles

1.[Name of party A] will own the [specify] motor vehicle and will pay the remaining balance of any lien debt on it.

2.[Name of party B] will own the [specify] motor vehicle and will pay the remaining balance of any lien debt on it.

6.Money

1.[Name of party A] will receive the following bank accounts: [specify].

2.[Name of party B] will receive the following bank accounts: [specify].

7.Life Insurance

1.[Name of party A] will receive all policies of insurance on [her/his] life.

2.[Name of party B] will receive all policies of insurance on [his/her] life.

8.Retirement

[[Name of party A]/[name of party B]]’s retirement benefits at [employer] that have accrued through the date of divorce will be divided [percent] percent to [name of party A] and [percent] percent to [name of party B]. A QDRO will be submitted to the Court for entry that contains the following particulars regarding the division of benefits: [specify].

9.Spousal Maintenance

[[Name of party A]/[name of party B]] will pay spousal maintenance to [[name of party B]/[name of party A]] of [number] dollars ($[amount]) per month for [number] months, begin­ning on [date], with each payment being due and payable on the [day of month] of each month. The maintenance obligation will terminate earlier on the occurrence of an event set forth in section 8.056 of the Texas Family Code.

The parties stipulate that under chapter 8 of the Texas Family Code, without an agree­ment of the parties, the maximum monthly spousal maintenance obligation the Court could order [[name of party A]/[name of party B]] to pay [[name of party B]/[name of party A]] is [number] dollars ($[amount]) and the maximum duration of a spousal maintenance obligation the Court could order [[name of party A]/[name of party B]] to pay [[name of party B]/[name of party A]] is [number] months. [Include if applicable: The parties understand that the Court may not enforce by contempt or income withholding any provision of an agreed order for mainte­nance that exceeds the amount of periodic support the Court could have ordered under chapter 8 of the Family Code or for any period of maintenance beyond the period of maintenance the Court could have ordered under that chapter.]

This spousal maintenance obligation will be governed by the provisions of chapter 8 of the Texas Family Code and may be modified, enforced, or terminated only in accordance with those provisions.

10.Alimony

[[Name of party A]/[name of party B]] will pay contractual alimony to [[name of party B]/[name of party A]] of [number] dollars ($[amount]) per month [for [number] months/until the earliest event set forth below], beginning on [date], with each payment being due and pay­able on the [day of month] of each month. The alimony obligation will terminate earlier on the occurrence of one of the following events:

1.Death of [name of party A];

2.Death of [name of party B];

3.Remarriage of [[name of party A]/[name of party B]]; or

4.Cohabitation by [[name of party A]/[name of party B]] with another person with whom [[name of party A]/[name of party B]] has a dating or romantic relationship in a perma­nent place of abode on a continuing basis.

This alimony obligation is contractual in nature and will not be governed by the provi­sions of chapter 8 of the Texas Family Code and may not be modified, enforced, or terminated in accordance with those provisions.

11.Liabilities

1.[Name of party A] will pay the liabilities listed in Schedule C.

2.[Name of party B] will pay the liabilities listed in Schedule D.

12.Attorney’s Fees and Costs

1.[Name of party A]’s attorney’s fees will be paid by [[name of party A]/[name of party B]].

2.[Name of party B]’s attorney’s fees will be paid by [[name of party A]/[name of party B]].

3.Costs will be paid by [[name of party A]/[name of party B]].

13.Other Provisions

The provisions of this Informal Settlement Agreement shall be effective immediately as a contract, shall supersede any temporary orders or other agreements of the parties with respect to the subject matter of this agreement, and shall serve as a partition of all property set forth in this agreement to the person to whom such property is awarded. All income from any property awarded in this agreement is partitioned to the person to whom the property is awarded. All earnings from each party are partitioned to the person providing the services giv­ing rise to the earnings. These partitions are to be effective pursuant to section 4.102 of the Texas Family Code, and in this respect each party waives further disclosure of property and debts of the other party.

The discovery obligations of each party shall immediately cease on the execution of this Informal Settlement Agreement, including the requirement for either party to respond to outstanding discovery requests or supplement any discovery responses.

[Specify any other provisions of agreement.]

14.Release

Each party releases the other from all claims, demands, and causes of action each may have against the other, save and except those covenants, duties, and obligations set forth in this agreement.

15.Full Disclosure

Each party represents that [he or she/he/she] has made a fair and reasonable disclosure to the other of the property and financial obligations known to [him or her/him/her].

16.Final Documents

1.The terms of this agreement will be incorporated in a decree and agreement inci­dent to divorce that will follow the forms published in the current edition of Texas Family Law Practice Manual. The attorney for [[name of party A]/[name of party B]] will prepare the documents.

2.Other closing documents will be prepared by the attorney for the party who will benefit thereby, with such documents to follow the forms published in the current edition of Texas Family Law Practice Manual.

17.Disputes Regarding This Agreement

If any dispute arises with regard to the interpretation or performance of this agreement or any of its provisions, including the necessity and form of closing documents, the parties agree to try to resolve the dispute by phone conference.

Any disputes arising from the drafting of the decree or closing docu­ments, the interpretation, omitted issues, or performance of this agreement or any of its provisions that cannot be resolved by phone conference as set forth above shall be decided by binding arbitration with [name] serving as arbitrator. Parties and/or counsel agree to notify [name], in writing, of their request for [his/her] services at least seven days prior to a court entry date and will deposit an additional [number] dollars ($[amount]) per party toward the cost of those services before any arbitration services are rendered.

Any disputes regarding drafting shall be resolved whenever possible by reference to the current edition of Texas Family Law Practice Manual.

18.Representation

Each party signing this Informal Settlement Agreement has entered into the settlement agreement freely and without duress. [Name of party A] has [consulted with an attorney of [his/her] choice/had the opportunity to consult with an attorney of [his/her] choice but has declined to do so]. [Name of party B] has [consulted with an attorney of [his/her] choice/had the opportunity to consult with an attorney of [his/her] choice but has declined to do so].

19.Place of Performance

This agreement is made and is performable in [county] County, Texas, and must be construed in accordance with Texas law.

20.Court Appearance

The parties [include if applicable: and their respective attorneys] agree that, with no less than forty-eight hours’ notice via e-mail, either Petitioner or Respondent [include if applica­ble: and [his/her] attorney] may appear in court for the purpose of presenting evidence and securing the Court’s approval of this Informal Settlement Agreement, and the parties agree that this Court may orally render judgment on such date, with an entry date of the Agreed Decree of Divorce to be established by the Court.

21.THIS AGREEMENT IS NOT SUBJECT TO REVOCATION.

   
[Name of party A]
Signed on       

   
[Name of party B]
Signed on       

   
[Name]
Attorney for [name of party A]
Signed on       

   
[Name]
Attorney for [name of party B]
Signed on