Child Support Settlement Agreement

CHILD SUPPORT SETTLEMENT AGREEMENT

This Child Support Settlement Agreement ("Agreement") is made and entered into as of Day: Month: Year: by and between Payor Name: whose address is ("Payor"), and Payee Name: whose address is ("Payee").

Child(ren) subject to this Agreement: Date(s) of Birth:

RECITALS

WHEREAS, Payor and Payee are the parents of the Child(ren) identified above and there exists a current child support obligation under Case/Order Number: arising from an order of the family court of the jurisdiction referenced below; and

WHEREAS, the parties desire to settle, compromise, and resolve certain child support claims, arrears, and related obligations without further litigation, subject to the terms, conditions, and limitations set forth in this Agreement; and

WHEREAS, the parties acknowledge that in many jurisdictions court approval may be required to modify or extinguish child support obligations and that this Agreement is intended to be submitted for approval to the appropriate court if necessary.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

In this Agreement, unless the context otherwise requires: (a) "Effective Date" means the date set forth above; (b) "Arrears" means child support amounts accrued prior to the Effective Date as set forth in the parties' records and any court order referenced above; (c) "Court" means the family court having jurisdiction over the parties' child support order.

2. SETTLEMENT PAYMENT TERMS

2.1 Payment Election. The Payor shall satisfy the settlement by the following method (check applicable box):

Lump sum payment of $ payable in full on or before .

Installment plan: total settlement amount $ to be paid in equal installments of $ due on the day of each month, commencing on and concluding on .

2.2 Method of Payment. All payments shall be made by check, electronic transfer, or other method mutually agreed in writing to the account or address designated by Payee. Payments received after 5:00 p.m. on the due date shall be deemed received the following business day.

2.3 Default. Failure by Payor to make any payment when due shall constitute a material breach of this Agreement and shall entitle Payee to pursue any and all remedies available at law or equity, including acceleration of remaining payments, enforcement of any underlying support order, and recovery of reasonable attorneys' fees and costs incurred to enforce this Agreement.

3. RELEASE AND COVENANT NOT TO SUE

3.1 Upon Payor's full performance of the payment obligations set forth in Section 2, and subject to paragraph 3.3, Payee shall release Payor from those child support arrears specifically identified and extinguished by this Agreement as of the Effective Date. The release shall be limited to the specified arrears and does not extend to future support obligations except as expressly set forth herein.

3.2 Payee covenants not to initiate a civil action solely to recover the released arrears against Payor, provided Payor timely and fully performs under this Agreement.

3.3 Notwithstanding anything in this Agreement to the contrary, neither party may waive or release any statutory rights the child(ren) may possess under applicable law. To the extent a court or statute requires that child support obligations may not be released or modified without judicial approval, this Agreement shall be submitted to the appropriate court for review and approval and shall be effective only to the extent approved by the Court.

4. ONGOING CHILD SUPPORT OBLIGATIONS

4.1 Except as expressly stated in Section 3 with respect to specified Arrears, this Agreement does not modify any existing periodic child support obligations unless the parties obtain an express written modification of the underlying order from the Court. Any modification of ongoing obligations shall be ineffective unless approved by the Court where required.

4.2 Either party retains the right to petition the Court for modification of periodic child support upon a material change in circumstances as defined by applicable law.

5. TAX TREATMENT

The parties acknowledge that the characterization of any payments for federal, state, or local tax purposes may vary depending on the nature of the payment and applicable law. Each party shall consult with and rely upon the advice of his or her own tax advisor. Neither party shall be responsible for the other party's tax liability except as otherwise required by law.

6. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that: (a) such party has the full right, power, and authority to enter into this Agreement; (b) this Agreement is executed voluntarily and without duress or undue influence; (c) such party has made full and accurate disclosure to the other of all material financial information related to the subject matter of this Agreement; and (d) upon execution this Agreement will constitute a legal, valid, and binding obligation enforceable against such party.

7. CONFIDENTIALITY

Except as required by law, regulation, or court order, neither party shall disclose the terms of this Agreement to third parties other than professional advisors, tax authorities, or as reasonably necessary to obtain court approval. Any permitted recipient shall be advised of this confidentiality obligation.

8. ATTORNEYS' FEES AND COSTS

Except as otherwise ordered by a Court or as provided in this Agreement, each party shall bear his or her own attorneys' fees and costs incurred in negotiating and executing this Agreement. In the event of a breach of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs incurred in enforcing its rights hereunder.

9. NOTICES

All notices required or permitted under this Agreement shall be in writing and shall be delivered personally, sent by certified mail, return receipt requested, or by a nationally recognized overnight courier service, and shall be deemed given when received at the following addresses:

10. AMENDMENTS; WAIVER; COUNTERPARTS

This Agreement may be amended only by a writing signed by both parties. No waiver of any provision of this Agreement shall be effective unless in writing signed by the party granting the waiver. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

11. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the substantive laws of the State of without regard to its conflicts of law principles. The parties agree that venue for any action to enforce this Agreement shall be in the courts of that State.

12. ENTIRE AGREEMENT; SEVERABILITY

This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

13. COURT APPROVAL

To the extent that Court approval is required to effectuate any modification or release of child support obligations, the parties agree to cooperate in good faith to seek such approval. Neither party shall unreasonably withhold consent to submit this Agreement to the Court for approval.

The parties agree this Agreement shall be submitted to the appropriate court for review and entry of any necessary orders.

14. ENFORCEMENT AND REMEDIES

The parties agree that any breach of this Agreement may be enforced by specific performance, injunctive relief, entry of judgment for damages, or any other remedy available at law or equity. Remedies are cumulative and the election of one remedy shall not preclude pursuit of others.

15. REPRESENTATION BY COUNSEL

Each party acknowledges that he or she has had the opportunity to seek independent legal advice regarding the advisability of executing this Agreement and that each understands the terms, consequences, and obligations set forth herein.

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