Marital Separation and Property Settlement Agreement

Marital Separation and Property Settlement Agreement between ______ and _____________ AGREEMENT, made this ___ day of _____, 2008, between ____________ (hereinafter referred to as Husband) and __________________ (hereinafter referred to as Wife). EXPLANATORY STATEMENT The parties were married in ________, Pennsylvania, on _________________, in a religious ceremony. No minor children have been born of or adopted by said marriage. Differences have arisen between the parties. They are now, and have been since ______________, no longer living as Husband and Wife, voluntarily and by mutual consent, with the purpose and intent of ending their marriage It is the desire of both parties in this Agreement to determine, settle, and formalize their duties and obligations to each other and any issues regarding alimony, their respective rights in the property or estate of the other, and in property owned by them jointly or as tenants by the entireties and in marital property, and all other rights, claims, relationships or obligations between them arising out of their marriage or otherwise, and each party having general knowledge of the properties owned by them separately and jointly and of their respective means, obligations and needs. NOW, THEREFORE, in consideration of the promises and mutual covenants and understandings of each of the parties, they each hereby mutually agree to the following: 1. SEPARATION It shall be lawful for each party at all times hereafter to live separate and apart from the other party at such place or places as he or she may from time to time choose or deem fit. The parties shall not molest or interfere with each other, nor shall either attempt to compel the other to cohabit or dwell with him or her, by any means whatsoever. Husband and Wife agree that the marriage is irretrievably broken and will proceed with divorce under 23 Pa. C.A. Section 3301 (c) or (d), as appropriate. 2. ALIMONY MUTUAL WAIVER. It is the mutual desire of the parties that hereafter they shall each maintain and support themselves separately and independently of the other. Accordingly, and in consideration of the terms of this Agreement, the provisions contained herein for the respective benefit of the parties, a consideration, the Wife hereby releases and discharges the Husband, absolutely and forever for the rest of her life, from any and all claim or right to receive from the Husband temporary, definite, or indefinite alimony, support, or maintenance for the past, present or future. The Wife acknowledges that this provision has been explained to her and she understands and recognized that, by the execution of this Agreement, she cannot at any time in the future make any claim against the Husband for alimony, support, or maintenance of any kind whatsoever for herself. The Husband hereby releases and discharges the Wife, absolutely and forever for the rest of his life, from any and all claim or right to receive from the Wife temporary, definite, or indefinite alimony, support, or maintenance for the past, present, or future. The Husband acknowledges that this provision has been explained to him and he understands and recognized that, by the execution of this Agreement, he cannot at any time in the future make any claim against the Wife for alimony, support, or maintenance of any kind whatsoever for himself. 3. MEDICAL INSURANCE GENERAL. Each party shall maintain their own medical insurance on their own behalf. Each party waives any interest they have in the other’s medical insurance proceeds. 4. DISPOSITION OF PROPERTY MARITAL REAL PROPERTY. The parties are joint obligors on a lease of real property known as ________________________________________________, which is presently occupied by both the Husband and Wife. -1- The Wife is to maintain payments current on said lease and to hold the Husband harmless as to any related obligation thereon. The Wife shall continue to abide by all remaining terms and payment conditions as expressed within the existing lease. OTHER MARITAL REAL PROPERTY. The parties own the property located at ____________________________________________. The parties acknowledge that the property is currently occupied by neither of the parties. The parties agree that this property is to be deeded to the Wife. Therefore, the parties agree as follows: The Husband shall immediately sign a Deed to the property deeding all of his interest in it to the Wife. Said Deed shall be prepared by the Wife or her attorney and the Wife shall bear the sole cost of preparation and recording of the Deed. The parties agree that this transfer of real property is not a sale. The Wife will not provide any financial compensation to the Husband for this transfer. The Wife shall assume all responsibility and obligation for payment of any existing lien or mortgage on this property, unless specified elsewhere in this Agreement. If any existing lien or mortgage cannot, by structure or limitation of the lien or mortgage contract, be assumed solely by one party, the Husband and Wife will cooperate fully to re-finance all existing liens into the Wife’s name only or to otherwise terminate any financial obligation of the Husband created by an existing lien or mortgage. PERSONAL PROPERTY. The parties agree with respect to their personal property as follows: The ________________________________________________________________________ shall become the property of the Husband, and, contemporaneously with the execution of this Agreement, the Wife will execute all documents necessary and appropriate to convey title of said automobile to the Husband. The Husband shall thereafter be solely responsible for all expenses arising from such vehicle, and shall hold the Wife harmless as to the operation, maintenance, and all financial obligations arising out of the ownership of said vehicle. The ____, shall become the property of the Husband, and, contemporaneously with the execution of this Agreement, the Wife will execute all documents necessary and appropriate to convey title of said watercraft to the Husband. The Husband shall thereafter be solely responsible for all expenses arising from such watercraft, and shall hold the Wife harmless as to the operation, maintenance, and all financial obligations arising out of the ownership of said watercraft. The parties agree that the Husband shall have as his sole property any belongings he brought into the marriage. The parties agree that the Wife shall have as her sole property any belongings she brought into the marriage. Except where otherwise specified in this Agreement, the parties shall divide between them, to their mutual satisfaction, all furniture and household furnishings, and all other items of personal property which heretofore have been held by them in common, jointly, or as tenants by the entirety, and neither party will make any claims to any such items which are agreed to be owned by the other. COMMON FINANCIAL ASSETS. Except where otherwise specified in the Agreement, the parties shall divide all joint checking and savings accounts, all stocks, all certificates of deposit, all bonds, all mutual funds, and all other common financial assets which are legally marital property. Once divided to the satisfaction of both parties, neither party shall make any claims on the other party’s common financial assets, unless such claim can be reasonably considered appropriate compensation for the breach of some other clause of this Agreement, or unless such claim is proper pursuant to a separate amendment, contract, or legal action. OTHER PROPERTY. The parties represent and acknowledge that there is no other property, real or personal, which is owned jointly or in which both have an interest, and hereafter neither party will make any claim to any item which is in the possession of the other. Each party shall own, have and enjoy independently of any claim or right or the other, all items -2- of property, real or personal, of every kind now or hereafter owned or held by him or her with full power to dispose of same as fully and effectively in all respects and for all purposes as if he or she were unmarried. 5. LIFE INSURANCE Each party shall have the right to name any person or organization they so choose as beneficiary on their life insurance policies. Each party waives any interest they have in the other party’s life insurance proceeds, cash value, or otherwise. 6. RETIREMENT BENEFITS The Husband agrees to waive and release any rights or claims he may now have to any retirement pay, benefits or privileges earned by the Wife before or during this marriage. The Husband hereby waived all right to claim interest or share in the Wife’s Individual Retirement Acounts, which shall become her sole property. The Husband and the Wife agree that if any payments are specified in this section, said payments will not be taxable to the receiving party, as the payment will be received as a division of marital property of the parties. Each party pledges to cooperate with the other to secure approval of or execution of any documents that are necessary to transfer pension, 401(k) or IRA funds to the payee from the payor’s accounts, if applicable. 7. ESTATE PLANNING INHERITANCE. The parties each forever waive all rights to inherit from the other party and rights to receive any property on the death of the other party, except by reason of a will, codicil, or republication of will by the other party executed subsequent to this date. The parties each recognize that this waiver includes rights that they otherwise might have or acquire under 20 Pennsylvania Statutes 2203 et seq., any amendment thereof, or any successor statute. The foregoing, however, shall not bar a claim on the part of either party for any cause arising out of a breach of this Agreement during the lifetime of the deceased party against whose estate such claim may be made. ADMINISTRATION. The parties forever waive all rights to act as administrator of the other party’s estate and all rights to request or petition for the appointment of any person to serve as such representative or to act as the executor of the other party’s will, unless expressly named in a will, codicil, or republication of will by the other party, executed subsequent to this date or by reason of an insurance policy if specified within this Agreement. 8. DEBTS GENERAL. The parties agree that they will not incur of contract any debt in the name of the other, or on the credit of the other, and will not pledge the other’s credit in any manner after the execution of this Agreement, and that each shall hereafter be responsible for his or her obligations, except as set forth in this Agreement. Immediately upon execution of this Agreement, each of the parties shall do whatever is necessary to close immediately all joint accounts in the name of the Husband and the Wife or either of them under which one may make purchases on credit of the other. CREDIT HISTORY. The parties acknowledge and agree that the credit history established by them during their marriage shall be deemed to have been the credit history of both parties, notwithstanding ordinary practices of creditors and credit reporting agencies that may have reported such credit history in the name of the Husband only. The Husband agrees that he shall cooperate and execute any documents as may be required to enable the Wife to provide her prospective creditors the full credit history of the parties during the marriage. Nothing in this Agreement is intended or shall be deemed to create any liability for the Husband of debts or obligations incurred by the Wife arising out of the credit information provided to her. INDEMNIFICATION. Except as otherwise specified herein, the parties agree that each will be responsible for his or her own debts and that neither will be responsible for debts of the other. In the event that either party shall be called upon to answer for or to pay any debts or obligation of the other, then the Husband or the Wife, as the case may be, shall defend against the payment of such debt, and in the event the Husband or the Wife shall be required to pay, the opposite spouse shall exonerate and indemnify the Husband or the Wife against such debt, including all legal and proper costs, reasonable charges, and such damages as may have been caused by the failure to have paid such debt when due. -3- COMPLIANCE. At the request of the other, the parties shall at any time, and from time to time hereafter, execute, acknowledge and deliver to the other party any further instruments and assurances that my be reasonably required for the purpose of giving full force and effect to the provisions of this Agreement. If either party shall fail to comply with the provisions of this paragraph, this Agreement shall constitute and actual grant, assignment, and conveyance of the property and rights in such manner and with such force and effect as shall be necessary to effectuate the terms of this Agreement. MUTUAL RELEASE. Except as otherwise provided by this Agreement, each party hereby covenants and agrees that he or she will not incur any debts, obligations, or liabilities on the other party’s credit, nor do anything for which the other party might be legally liable or answerable. Each party covenants and warrants that there are no debts or obligations of any kind incurred by him or her and binding on the other party. Except as otherwise provided by this Agreement, all property and money received and retained by the parties pursuant hereto shall be the separate property of the respective parties, free and clear of any right, interest, or claim of the other party, and each party shall have the right to deal with and dispose of his or her separate property, both real or personal, as fully and effectively as if the parties had never been married. 9. MISCELLANDOUS PROVISIONS EFFECTIVE DATE OF AGREEMENT This agreement shall be effective as of the date it is executed by both parties. All agreements and representations of the Husband and the Wife shall be deemed to have been made as of this date. LEGAL REPRESENTATION The Husband and Wife each acknowledge that they have had the opportunity to retain counsel but have decided not to do so. The parties fully understand the facts and terms of this Agreement. Each party, whether or not represented by licensed legal counsel, enters freely and voluntarily into this Agreement. If after the final divorce judgment has been entered, either party shall default in the performance of any of the obligations of this Agreement, or of any order or judgment, the other party may take action to lawfully recover his or her reasonable attorney’s fees and costs from the defaulting party or his or her estate. COSTS OF ENFORCEMENT The parties agree that any costs, including but not limited to counsel fees, court costs, investigation fees, and travel expense, incurred by a party in the successful enforcement of any of the agreements, covenants, or provisions of this Agreement, whether through litigation or other action to compel compliance herewith, shall be borne by the defaulting party. Any such costs incurred by a party in the successful defense to any action for enforcement of any of the agreements, covenants, or provisions of this Agreement shall be borne by the party seeking to enforce compliance. TAX RETURNS AND REFUNDS The parties shall file separate Federal and state income tax returns for the taxable year 2008. If the parties agree to a joint filing for any taxable year, the Husband shall indemnify and hold harmless the Wife against all claims or loss, including reasonable attorney’s fees, which the Wife may incur as a result of her agreement to file joint income tax returns with the Husband, and the Wife shall indemnify and hold harmless the Husband against all claims or loss, including reasonable attorney’s fees, which the Husband may incur as a result of his agreement to file joint income tax returns with the Wife; the purpose of this paragraph being that each party shall pay for his or her own errors, omissions, or failure to report his or her income correctly. INTEREST DEDUCTIONS AND DEPRECIATION. At such time as the parties file separate Federal and State Income Tax returns and as long as they own any real property described in this Agreement, the Husband shall receive zero percent (0%) of the interest deductions and depreciation attendant thereto, and the Wife shall therefore receive one hundred percent (100%) of the interest and depreciation attendant thereto. CAPITAL GAINS. The parties acknowledge that they have not accrued any capital gains from the sale of any marital property during the previous tax year, or in the current tax year until the present, which have not yet been appropriately -4- documented within State and Federal tax filings, as required by law. Other than any capital gains tax implications and responsibilities identified in Section 4 above, if future capital gains, associated with the sale or transfer of any marital property, are recognized, the parties agree that the Husband will pay zero percent (0%) of all taxes due on these gains, and any and all interest and/or penalties that may become due upon that portion, and the Wife agrees to pay one hundred percent (100%) of all taxes due on these gains, and any and all interest and/or penalties that may become due upon that portion. COOPERATION REGARDING CLAIMS AND DEFENSES. The Husband and the Wife each agree to promptly notify the other in the event the Internal Revenue Service or any state or local taxing authority provides notice of an audit, deficiency, refund, or the adjustment regarding a tax return that was jointly filed or that should have been jointly filed. The party receiving such notice from a taxing authority shall proved a copy of the notice to the other party. The Husband and the Wife further agree to cooperate fully with the other in any claims for refunds or in defending against any deficiencies that may be determined with respect to joint income tax returns filed (or to be filed) for the calendar year 2006 and years prior. This includes, without limitation, the making, executing, and filing of amended income tax returns; applications for refunds, protests, and other instruments; and documents as may be required. RELEASE OF GENERAL CLAIMS Except as expressly provided in this Agreement, each party hereby waive, releases, renounces and forever discharges all other claims, causes of action, rights or demands, known or unknown, past, present, or future, which he or she now or hereafter has, might have, or could claim to have against the other or any present or future property of the other by reason of the marital relationship or any matter, thing or cause whatsoever. Nothing in the Paragraph shall be deemed to prevent either party from enforcing the terms of this Agreement or from asserting any rights or claims expressly reserved to either party in the Agreement. Nothing herein shall impair or waive any cause of action which either party may have against the other for dissolution of the marriage or any defenses either may have to any such cause of action. The parties, by execution of this Agreement, have provided for a fair and equitable distribution of all property belonging to the parties. AUTOMOBILE INSURANCE Each party shall be responsible for his or her own automobile insurance from the date of separation and thereafter, with no contribution required from the other party. SOCIAL SECURITY AND OTHER BENEFITS Nothing in this Agreement shall constitute a waiver of either party’s individual rights to receive Social Security or other governmental benefits (state, local and/or Federal) on his or her own account, as a widow, widower, or separated or divorced person, in consonance with applicable law. BINDING EFFECT This Agreement shall be binding upon the parties, their heirs, administrators, executors and assigns. SUCCESSIONS This Agreement shall inure to the benefit of the parties and their respective heirs, administrators, executors, successors, and assigns. GOVERNING LAW This Agreement shall be governed by the law of the Commonwealth of Pennsylvania. The Husband and the Wife consent to the jurisdiction of the Court of Common Please of the Commonwealth of Pennsylvania for the purposes of enforcing the elements of this Agreement. ENTIRE UNDERSTANDING This Agreement contains the entire understanding and agreement of the parties pertaining to these matters, and they shall not be bound by any representations, warranties, promises, covenants, or understandings other than those set forth -5- herein. All prior agreements, understandings, or representations are hereby terminated and cancelled in their entirety and are of no further force. No amendment or modification of this Agreement or any judgment or order based on it shall be valid unless signed by the Husband and the Wife or ordered by the court after duly noticed hearing. RELIANCE ON MATERIAL REPRESENTATIONS The Husband and the Wife acknowledge that in entering into this Agreement, each has been induced to and is directly and materially relying in good faith on the truth and completeness of the representations and warranties expressly made by the other party to this Agreement. The parties have also either agreed to not exchange any financial statements and records, or upon agreement, have exchanged sworn Financial Disclosure Affidavits (Statements of Net Worth) and other financial data including, but not limited to, joint Federal and State Income Tax Returns, W-2 Wage and Tax statements, data regarding the benefits from employment, pension information, bank statements, checking account statement, and credit card bills, as well as other miscellaneous business and personal financial data. MODIFICATION The parties at any time may, by mutual consent, amend or modify the terms of this Agreement, provided that any modification or waiver of any of the terms of this Agreement shall not be effective unless in writing and executed with the same formality as this Agreement. BREACH AND WAIVER Any waiver of any breach or default under this Agreement shall not be deemed a waiver of any subsequent breach or default. FURTHER ASSURANCES The Husband and the Wife shall each execute and deliver promptly on request any additional papers, documents, and other assurances reasonably necessary in connection with the performance of these obligations. In the event that either party fails or refuses to comply with the provisions of this paragraph, the failing party shall reimburse the other party for all losses and expenses including, but not limited to, attorneys’ fees and costs incurred as a result of such failure. SUBMISSON TO COURT This Agreement may be submitted by either party to any court before which a petition for the dissolution of the marriage may be pending for approval by the court and for incorporation into the final judgment decreeing the dissolution of the marriage. SUBSEQUENT DIVORCE If any action for divorce is hereafter instituted by either party against the other, this Agreement may, if desired, be submitted to the Court in such action for approval and incorporation in a decree should one be granted; but this Agreement shall be independent of, not merged with, nor dependent for its effectiveness upon such approval or incorporation, nor be otherwise affected thereby. RELIGIOUS DIVORCE If requested by either party, the parties shall cooperate fully in obtaining a religious divorce. Each party shall cooperate in executing all documents reasonably necessary to obtain such a divorce. The parties shall be equally responsible for any additional costs which are a direct result of additional fees or processing, associated with any existing, reasonable religious divorce requirements. RECONCILIATION The parties recognize the possibility of reconciliation. It is their intention that a reconciliation, temporary or permanent, or a further separation after any reconciliation, shall in no way abrogate or affect the provisions of this Agreement having to do with the settlement and disposition of the property rights of the parties nor their respective real and personal property, as set forth herein. DISPUTE RESOLUTION -6- The parties agree that every dispute or difference between them, arising under this Agreement, shall be settled first by a meeting of the parties attempting to confer and resolve the dispute in a good faith manner. The parties shall attempt to meet together as soon as reasonably practical. If the parties cannot resolve their dispute after conferring, either party may require the other party to submit the matter to non-binding mediation, utilizing the services of an impartial professional mediator approved by both parties. Such mediation shall occur as soon as reasonably practical and neither party shall unreasonably withhold its consent to the appointment of the mediator. The reasonable costs and expenses of the mediator shall be borne equally between the parties. In the event that a dispute between the parties cannot be resolved in the foregoing manner, each of the parties hereby waives its rights to a trial by jury in any action or proceeding arising out of in connections with or in any way pertaining to this Agreement. It is agreed and understood that this waiver constitutes a waiver of trial by jury of all claims against all parties to such action or proceedings, including claims against parties who are not parties to this Agreement. This waiver is knowingly, willingly and voluntarily made by each party. NOTICES All written notices and demands that either of the parties gives to the other party in connection with this Agreement, or any to personal service, shall be made by mailing the notice or demand in a sealed envelope addressed to the party, with postage fully prepaid by certified mail, return receipt requested. Any service to the Husband shall be addressed to him at __________________________________________________, or another address designated by him in writing to the Wife. Any service to be made on the Wife shall be addressed to her at ___________________________________________________, or another address designated by her in writing to the Husband. IN WITNESS WHEREOF, the parties hereto have set their hands and seals to two counterparts of this Agreement, each of which will constitute an original, this _______________day of _____________, 20___. ________________________________________ , Husband ________________________________________ Witness ________________________________________ , Wife ________________________________________ Witness COMMONWEALTH OF PENNSYLVANIA, COUNTY OF ________________ , SS.: On the __________ day of _______________, 20 ____, before me, ___________________________, a notary public within and for the County and State aforesaid, personally appeared _____________________, personally know to me (or proved to me on the basis of satisfactory evidence) to be the individual whose name is subscribed to the within Agreement and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the Agreement he executed the same as his free and voluntary act and deed for the uses and purposes therein contained. IN WITHNESS WHEREOF I hereunto set my hand and official seal. ________________________________________ Notary Public My commission expires on _______ COMMONWEALTH OF PENNSYLVANIA, COUNTY OF ________________ , SS.: -7- On the __________ day of _______________, 20 ____, before me, ___________________________, a notary public within and for the County and State aforesaid, personally appeared __________________, personally know to me (or proved to me on the basis of satisfactory evidence) to be the individual whose name is subscribed to the within Agreement and acknowledged to me that she executed the same in his authorized capacity, and that by her signature on the Agreement she executed the same as his free and voluntary act and deed for the uses and purposes therein contained. IN WITHNESS WHEREOF I hereunto set my hand and official seal. ________________________________________ Notary Public My commission expires on _______ -8-