For an informal settlement agreement, see forms 18-51 and 18-52. For letters cautioning the client against signing an agreement without the attorney’s review, see forms 2-16 and 2-18.
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Include the following notice if a minor is named in the caption or if the agreement contains other unredacted sensitive data. See § 6 of the Introduction in volume 1 of this manual concerning protection of sensitive data in filed documents. |
NOTICE: THIS DOCUMENT
CONTAINS SENSITIVE DATA
[Caption. See § 3 of the Introduction in volume 1 of this manual.]
Mediated Settlement Agreement
1.Parties
The parties to this Mediated Settlement Agreement are [name of party A] and [name of party B].
The parties have agreed to appear at mediation electronically, which includes telephone or videoconference (for example, Zoom or Teams). Each party expressly agrees and warrants that this means of attendance at mediation has not negated or limited [his or her/his/her] ability to fully participate in the mediation process and that [he or she/he/she] was given the opportunity to speak with the mediator thoroughly. Each party further agrees and warrants that [he or she/he/she] had the opportunity to communicate and to receive confidential legal advice during this mediation. Each party agrees and understands that this settlement agreement is binding, as stated herein, regardless of the manner in which [he or she/he/she] participated at mediation.
2.Scope of Agreement
The parties agree to settle all claims and controversies between them, asserted or assertable, in this case except [specify].
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The following provisions are examples only. |
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—see instruction box below].
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All terms of the division should be included in the agreement; if they are not included, they are not awarded. See section 2.B.6. in form 23-6 in this manual. The language there presents examples only and must be modified for the actual division and different plan. The following must be included: •the full and accurate plan name (note that, for example, unless the participant works for Fidelity, “Fidelity 401(k)” is NOT the plan name); •the precise method of division; •the date of division (typically the date of the MSA or the divorce); •all features (e.g., loans, survivor benefits) awarded; and •who is responsible for the QDRO preparation and submission and all associated fees. Special consideration for defined contribution plans: If gains and losses are not included, determine how to handle the shortfall if the amount available at segregation is less than the amount awarded. Will the QDRO award the alternate payee 100 percent of the account balance in this event? How will the deficiency be handled? Special consideration for defined benefit plans: If the participant is already receiving a monthly benefit, will the participant have to pay the alternate payee the portion of the benefit between the date of divorce and the date the plan starts paying the alternate payee directly? If so, specify how, using enforceable language. |
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Repeat if applicable. |
9.Spousal Maintenance
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Parties should not include any provisions deviating from chapter 8 of the Family Code unless they want to exceed the amount of monthly spousal maintenance or the duration of spousal maintenance that a court may order without an agreement. Parties wanting to deviate from the termination grounds set forth in section 8.056 of the Family Code should use the alimony provisions instead, as that deviation may cause a court to find that the postdivorce support is not spousal maintenance, despite what the parties call it. |
[[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 first 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 ($[amount]) and the maximum duration of a spousal maintenance obligation the Court could order [[name of party A]/[name of party B]] to pay [[name of party B]/[name of party A]] is [number] months. [Include if applicable: The parties understand that the Court may not enforce by contempt or income withholding any provision of an agreed order for maintenance that exceeds the amount of periodic support the Court could have ordered under chapter 8 of the Family Code or for any period of maintenance beyond the period of maintenance the Court could have ordered under that chapter.]
This spousal maintenance obligation will be governed by the provisions of chapter 8 of the Texas Family Code and may be modified, enforced, or terminated only in accordance with those provisions.
10.Alimony
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Select one of the following. |
[[Name of party A]/[name of party B]] will pay contractual alimony to [[name of party B]/[name of party A]] of [number] dollars ($[amount]) per month for [number] months, 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:
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Or |
[[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 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 on the occurrence of one of the following events:
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Continue with the following. The listed items are examples. |
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.Parenting Plan
The parties agree to the terms and provisions contained in the parenting plan required under Texas Family Code section 153.603, which is incorporated in this agreement as Exhibit [exhibit number/letter] attached to this agreement. [See form 16-1.]
13.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]].
14.Other Provisions
The provisions of this Mediated 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 each party waives further disclosure of property and debts of the other pursuant to section 4.105 of the Texas Family Code.
The parties acknowledge that they each understand their right to have accountants, business and property evaluation specialists, appraisers, and other qualified people to further determine the nature and extent of their property and the property rights and values associated therewith, and their liabilities and amounts thereof, and to conduct discovery through sworn inventories and appraisements, depositions, interrogatories, requests for admissions, requests for document production, obtaining any appraisals, expert opinions, and expert reports, or any other judicial remedies available.
The parties each represent that they are sufficiently aware of the property and liabilities of the marital estate to make an informed decision regarding settlement [include if applicable: , and they waive their right to further determine the nature and extent of the property and liabilities of the marital estate and to conduct discovery].
The discovery obligations of each party shall immediately cease on the execution of this Mediated 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.]
15.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.
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Include 16. if applicable. |
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].
17.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.
18.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 with the mediator who facilitated this settlement.
Any disputes arising from the drafting of the decree or closing documents or the interpretation and clarification of this agreement 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.
19.Representation
Each party signing this Mediated 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].
Each party has been advised by the mediator that the mediator is not the attorney for any party and that each party should have this agreement approved by that party’s attorney before executing it.
20.Place of Performance
This agreement is made and is performable in [county] County, Texas, and must be construed in accordance with Texas law.
21.Court Appearance
The parties [include if applicable: and their respective attorneys] agree that, with no less than forty-eight hours’ notice via email, either Petitioner or Respondent [include if applicable: and [his/her/his or her] attorney] may appear in court for the purpose of presenting evidence and securing rendition of judgment in accordance with this Mediated Settlement Agreement, and the parties agree that this Court may orally render judgment on such date, with the Agreed Decree of Divorce to be submitted on a date established by the Court. The parties waive the making of a record.
22.THIS AGREEMENT IS NOT SUBJECT TO REVOCATION.
23.Electronic Signatures
This settlement agreement may be signed, in whole or in part, using electronic signatures.
[Name of party A]
Signed on
[Name of party B]
Signed on
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Include signature lines for parties’ attorneys who are present when the agreement is signed. |
[Name]
Attorney for [name of party A]
Signed on
[Name]
Attorney for [name of party B]
Signed on
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Attach all schedules mentioned in the agreement. Attach the parenting plan if applicable. |