What is a Property Settlement Agreement?

Depending on the circumstances of your divorce you can be dealing with a multitude of issues, to include custody, visitation, support (child and spousal), and property distribution. Many couples are able to resolve certain issues prior to trial, thus proceeding to trial on only a limited number of matters. For example, a couple may reach an agreement as to the distribution of the marital property but are unable to reach agreement as to custody, visitation, and support. In that instance, the only issues that will be dealt with at trial are custody, visitation, and support. In this post I will focus on a Property Settlement Agreement and explain how parties can reach this agreement with out ultimately resolving matters related to custody, visitation, and support, leaving those issues for trial.

First, it is important to understand what a Property Settlement Agreement is. A Property Settlement Agreement is an agreement between the parties that accounts for the distribution of marital assets. Iowa (as well as South Dakota and Nebraska) is an equitable distribution state. This means that the Courts will generally accept a fair and reasonable property division the parties agree to. However, if the parties cannot agree, the Court will ultimately distribute the property, based on their personal judgment as to what is equitable. Equitable does not mean equal, or even half, but rather what the District Court considers fair (although in practice the Courts often times reach a property distribution that approaches a 50/50 split of marital assets).

The substantial benefit of reaching a Property Settlement Agreement is that both parties have direct input into, and fully understand, what the distribution of property will be. If the parties are unable to reach an agreement, the Court will distribute the property in a manner they deem equitable, which often times leaves both parties upset as to the ultimate distribution of marital assets.

In order to successfully reach a Property Settlement Agreement the parties will need to be prepared to compromise. However, a Property Settlement Agreement reached through a series of compromises will often times be preferable to a decision by the Court that makes a distribution of the marital assets based on only a limited amount of testimony and evidence.

At the end of the day, the certainty that a negotiated Property Settlement Agreement brings to the divorce process can be a great relief to the parties. This isn’t to say that both parties will get everything they want. However, it does give them a clear understanding of what the distribution of marital property will be and does not subject them to what often times seems like an arbitrary distribution of assets based on the Court’s ruling.

For more information related to this article and other like it, continue following Divorce Lawyer on Your Side or contact the Goosmann Law Firm at info@goosmannlaw.com or (712) 226-4000.