What is a Settlement Agreement?
A settlement agreement is a legal document which spells out the terms of a settlement. The settlement agreement is reviewed by all the parties to the settlement to ensure that the document is comprehensive and accurate, and once the parties sign it, it becomes a legal contract. Settlement agreements are most commonly seen in civil cases, such as divorces or lawsuits, and they are a very useful legal tool. When people contemplate legal action, they can opt to settle, which means that they reach an agreement before adjudication takes place. In the most radical example of a settlement, an agreement might be reached before the case even comes to the attention of the court, as in the case of a company threatened with a lawsuit which wants to keep its name out of the news. At other times, court proceedings may be initiated, but the parties in the suit may reach an agreement and withdraw the case from the court. The settlement agreement discusses the terms for all parties involved. In the exa
So, you’ve both decided to settle, instead of going to court. Good for you. Now you “just need to put it in writing.” Maybe you have some of the questions set forth below. If we settle everything without going to court, is a document drawn up and sent to a judge? Yes. An attorney or an attorney mediator will draw up an Agreement, either before, during or after litigation has commenced. An Agreement may be prepared by an attorney mediator, by a collaborative attorney or by an attorney hired for negotiation or for litigation. The Agreement becomes a binding contract when signed. If either you or your spouse violates the Agreement, you could be sued for breach of contract. The document will be submitted into evidence during the court case, and will be incorporated into your final divorce decree. It will then also become a binding court order. If either one of you violates the terms of the Agreement later on, you could be held in contempt of a court order. The Agreement is actually a settl
