This agreement is an example, only. It is not intended for use as a legal template.
WHEREAS both Parties have established said household; WHEREAS both Parties are desirous of establishing certain obligations and responsibilities between them as a result of the establishment of said household and the management of their household;
and WHEREAS both parties declare their intentions as prudent and harmonious and for the purposes of establishing the fair management of their household, and not for financial gain or profit;
NOW THEREFORE, in consideration of these and other covenants contained herein, the Parties mutually agree as follows:
PERSONAL PROPERTY
All personal property brought to this household by either Party shall remain the personal property of each Party. In the event of dissolution of the household, each Party shall be entitled to his own personal property.
Said items shall not be considered joint nor transferred to the other except by a writing signed by both Parties. A list of joint property is appended as Schedule A and incorporated herein, by reference.
REAL PROPERTY
As of January 1, 1997, the Parties have purchased the said property. A copy of the deed, mortgage and note are attached hereto as Exhibits B., C., and D., respectively. The Parties will jointly share all tax deductions and/or benefits.
HOUSEHOLD ACCOUNTS AND EXPENSES
As of January 10, 1997, the Parties shall maintain a joint checking account out of which all household expenses, including mortgage payments, real estate taxes, repairs to the property, all utilities, telephone expenses, home insurance premiums, taxes, groceries, etc., shall be paid.
Each Party shall contribute 25 percent of said expenses on a monthly basis to said account. The books shall be kept by Anderson, Billings, and Associates, and shall be open for inspection by each Party at reasonable times.
In the event of dissolution of the household, said account shall be maintained for a period of ninety (90) days in order to facilitate the move out transition contemplated in clauses 5 and 6 below.
No Party shall deplete said funds or withdraw sums for any expenditure unless they are expressly for said household. After paying any outstanding debts, the account shall be closed and the remaining amount split evenly between the Parties.
FUTURE RENOVATIONS OR CAPITAL IMPROVEMENTS
Any renovations desired by either Party shall be decided upon jointly by the Parties and shall be paid from the household account. For purposes of the Agreement, any repairs over the amount of 500 dollars shall be considered a capital improvement unless the Parties agree in writing otherwise.
Both Parties must agree before any non-emergency repairs costing more than 500 dollars may be performed.
DISSOLUTION OF HOUSEHOLD AND SEPARATION
If either Party wishes to dissolve the household established under this contract, he shall give the other Party six (6) months written notice of his intention to do so. Notice of dissolution may be withdrawn by mutual written consent.
During the six months notice period each Party agrees not to disrupt the household and shall not take with him any personal property except clothing and necessities, or shall either Party destroy any personal property the subject of this Agreement.
Either Party shall continue to have access to the household. Neither Party shall change the locks on the residence nor shall either Party attempt to interfere with the liberty of the other during this transition period. Each Party shall continue to contribute to the Household Account and be responsible for the payment of household expenses unless otherwise agreed.
BUYOUT UPON SEPARATION
If one Party purchases the other Party's share of the property, the price of said share will be determined by obtaining an appraisal by a licensed professional. The costs of obtaining such appraisal shall be shared equally by the Parties.
The appraisal shall be the Fair Market Value (FMV). The FMV less closing costs less first mortgage payoff divided by two (2) shall be the purchase price of the other's share. If neither Party is able to purchase the property, the property shall be sold on the open market at the highest FMV. The net proceeds shall be divided equally.
If the Parties are unable to agree as to the disposition of the property, both Parties agree to engage the services of a mutually agreeable mediator to assist them in resolving such a dispute. If the Parties are unable to reach an agreement through the mediator, the dispute will be submitted to binding arbitration according to the procedures outlined below.
The request for arbitration may be made by either Party and shall be in writing and delivered to the other Party. The arbitrator who will resolve any disputes regarding this Agreement shall be chosen by the Parties. If an arbitrator cannot be chosen within fourteen (14) calendar days following the written arbitration request, the arbitrator shall be chosen by the Parties' attorneys.
Within fourteen (14) calendar days following the selection of the arbitrator, the arbitrator will hear the dispute between the Parties. The arbitration proceedings shall be in accordance with the rules of the American Arbitration Association.
Within seven (7) calendar days subsequent to the hearing, the arbitrator will make a decision and communicate it in writing to each Party. The decision of the arbitrator shall be binding and may be entered as a judgment by either Party.
INVALIDITY OR UNENFORCEABILITY OF A PROVISION
In the event that any part of this Agreement shall be held invalid, such invalidity shall not affect the whole Agreement, but the remaining provisions of this Agreement shall continue to be valid and binding to the extent that such provisions continue to reflect fairly the intent and understanding of the Parties.
APPLICABLE LAW
This Agreement shall be construed and governed according to the laws of the Commonwealth of Massachusetts.
MODIFICATION AND RENEWAL
This Agreement shall not be altered except by a written instrument signed by both Parties. This Agreement shall be reviewed, revised, if necessary, and re-signed every two years, beginning on or before January 3, 1999.
IN WITNESS WHEREOF, the Parties have hereto set their hands and seal this third day of January, 1997.
