Legal Definitions - property settlement agreement

A property settlement agreement is a legal document that outlines the division of assets and debts between two parties who are getting a divorce. It can be either a court-ordered judgment or a contract that is incorporated into a divorce decree.

For example, if a couple owns a house, cars, and bank accounts, a property settlement agreement would determine how those assets are divided between the two parties. It would also determine how any debts, such as a mortgage or credit card debt, are divided.

Another example would be if one party owned a business, the property settlement agreement would determine how the business is divided or valued.

Overall, a property settlement agreement is important in ensuring a fair and equitable distribution of assets and debts between two parties who are getting a divorce.