A divorce involving a business, investments or other valuable assets may leave you unsure about what your finances will look like afterward. If you and your spouse cannot agree on how to divide property or debts, a judge may decide those issues for you. Mediation gives you a chance to work out your own terms first.
A binding mediated settlement agreement may give you more control over those decisions. Through mediation, you and your spouse can settle some or all financial issues instead of asking the court to decide them.
When your agreement becomes binding
During mediation, a neutral mediator helps you and your spouse discuss possible terms. The mediator does not decide how you divide your property. You make that decision together.
A mediated settlement agreement is a written agreement you and your spouse reach during mediation. Texas law sets specific rules for a mediated settlement agreement to become binding. The agreement must say that neither party may revoke it. That statement must appear prominently in boldface, capital letters or underlined text.
You and your spouse must sign the agreement. If you have legal counsel present when you sign, they must also sign the agreement.
Once the agreement meets these rules, Texas law gives a party the right to seek a judgment based on its terms. In general, you cannot sign a binding agreement and later treat it as a proposal that you are free to reject.
How mediation can limit court disputes
You do not have to resolve the entire divorce in mediation. You might settle how to divide certain assets while still disagreeing about another financial matter.
A partial agreement leaves fewer matters for the judge to decide. If you settle all property and debt issues, those agreed terms can form the basis of that part of your divorce decree. This gives you direct input into the matters you settle.
Preparing for mediation
You may want to review your major assets and debts before mediation. It may also help to identify the financial issues that you and your spouse have not yet resolved. Consider gathering records that relate to those issues. Reviewing them could help you see what still requires an agreement as you prepare for the legal process.
