Tuesday, August 15, 2017

The Importance of Understanding Future Income in a Mediated Settlement Agreement

Originally published by Guest and Gray Law Firm.

What is a Mediated Settlement Agreement?

If you reach an agreement in a mediation, more precisely called a Mediated settlement agreement or MSA for short, the agreement is binding on you and all other parties you are agreeing with in a family law case as long as the MSA is drafted in the way that is required under the Texas Family Code. The agreement must be the result of a mediation, hence the name, which is basically just the meeting of both parties with a neutral third person facilitating the conversation so that the parties can come to an agreement. Texas law encourages mediation as a cost-efficient and time-efficient way of settling disputes. One of the benefits of mediation is that instead of a judge who has only a glimpse into the lives of parties based on evidence presented to him or her, during a mediation the parties who know their situation and family the best get to come to an agreement that works for them and is custom to their situation.

One downside to a mediation could be that as opposed to a judge who should know what the consequences of their decision could potentially be, parties could be making agreements in a mediated settlement agreement using language that will have consequences after the agreement is entered that they did not intend. One of the reasons that we trust judges to make decisions for us in legal matters is that in general they have years of experience dealing with similar matters and they should understand what all of the legal jargon that goes into an order actually means.
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