Divorce is a volatile, difficult, and emotionally charged process. In some cases, a party’s desire to finalize their case can overcome their better judgment. This blog summarizes basic concepts in Minnesota when it comes to determining whether an agreement is final and binding.
Enforceability of Settlement Agreements
Settlements in dissolution proceedings are generally treated as binding contracts, sometimes before being incorporated into the dissolution decree. Courts favor the settlement of disputes without litigation and uphold these agreements unless there is evidence of fraud, coercion, or they contravene public policy.
“Meeting of the Minds” in Settlements
The concept of “meeting of the minds” refers to mutual agreement as to the terms and meaning of an agreement. This concept is essential for the enforceability of any contract, including settlement agreements in divorces. For a settlement in dissolution of marriage, a “meeting of the minds” is evidenced by whether the parties actually reached an agreement, whether the parties intended to be bound, and whether such terms are detailed enough for the parties to have a mutual agreement.
Court’s Role in Settlements
Courts actively ensure that both parties understand and voluntarily agree to the terms of the settlement. This is often done through a detailed review in court or through detailed writings, where terms are set forth and parties confirm their understanding and agreement. If a party later contests the settlement, courts generally enforce the terms unless there is a valid claim of duress, unconscionability, or a similar defect. However, a party’s ability to successfully contest an agreement can depend on when that challenge is raised.
Nuances in Settlement Enforcement
If a settlement term is not incorporated into a final judgment or decree, that term is unenforceable. Courts may require reevaluation of the terms based on fairness and equity before enforcing such an agreement.
In short, to ensure your agreement is a binding and enforceable agreement, the terms must be adequately defined, recorded in some manner, and freely agreed to by all parties.