Liabilities (Debt)

How debts and financial obligations are addressed and divided between the parties, both during the marriage and in the event of separation or divorce.

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Non-Marital Liabilities

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Individual Responsibility

• Definition: Non-marital liabilities refer to debts and financial obligations incurred by either party individually, either before or after their marriage, that do not benefit the marital estate.

• Agreement Provisions: Each party agrees that, in the case of legal separation or divorce, each will be solely responsible for their non-marital liabilities. This includes debts incurred before the marriage or those linked to their separate properties.

• Indemnification: Each party agrees to indemnify and hold the other harmless from any claims or liabilities associated with these non-marital debts, ensuring that one is not financially burdened by the other’s individual obligations.

• Disclosure: Both parties have disclosed their respective non-marital liabilities in Exhibits A and B of the agreement, ensuring transparency and mutual awareness of each other’s financial obligations.

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Marital Liabilities

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Joint and Individual Debts

• Marital Debts: Marital liabilities are those incurred during the marriage for the benefit of the marital estate. Both parties acknowledge that such debts are the responsibility of the party incurring them, irrespective of the debt’s title.

• Division of Joint Debts: If a debt is incurred jointly, as documented in a written agreement, it is to be divided equally between both parties. This division reflects a fair and balanced approach to shared financial responsibilities.

• Post-Separation Debts: After the initiation of legal proceedings for separation or divorce, each party becomes solely responsible for any debts or liabilities they incur individually, protecting each from future financial entanglements with the other.