Each party holds the other party unscathed, compensated and defends the other party against any liability arising from a delay in the payment of its respective obligations. However, the parties are aware that any promise to hold any debt, collective or not, is only an obligation between the parties themselves. This obligation does not apply to a commitment by a creditor or other third party with respect to a possible obligation that might exist between the parties and such a creditor. Therefore, the fact that one party has agreed to consider the other party unscathed from such a debt does not in any way prevent such a creditor or another third party from enforcing that obligation on either or both parties. Any such execution may, but is not limited to, legal action, reference to credit bureau reports, garrison and property tax, and the implementation of other enforcement mechanisms of this type. In the event that the party that was held unscathed from a debt entered an application for additional credit, the debts for which it was considered unscathed are likely to be considered by such a potential lender as part of that party`s total debt burden, despite the agreement without damage. As a result, a lender refuses to lend funds to that party. If a party has been held free of a debt related to the actual purchase of real estate (i.e. a mortgage), there may be additional restrictions imposed on it, since these debts are considered part of that party`s total debt.
Among these additional restrictions, a lender`s refusal to lend funds for the purchase of real estate or otherwise may include that party`s inability to obtain certain types of mortgages, as well as other but not limited restrictions. Signing a document you don`t understand prepares for a bad situation. You should not sign unless you fully understand the effects of the agreement. In addition, you should not sign unless you are fully satisfied with the conditions and plan to comply with them. Once the agreement is signed, it is a legal document that you will follow. Here too, it is recommended to have the document checked by your own lawyer. This person is NOT the same lawyer your ex-spouse used. Your lawyer will protect your rights, his lawyer will protect his rights. Not having someone around can cost you dearly in the long run. Even better, we recorded a link below to download a pdf version of this settlement contract, which was noted by one of our divorce attorneys with notes so you know exactly what everything means.