In divorce or family law matters, there is oftentimes an order from the court for payment from one party to the other. Sometimes, the order is through a consent judgment. Other times, the court might order the payment after a trial or hearing.
The payments can sometimes involve property settlements in a divorce. For example, one party might be ordered to pay the other party a certain amount for property settlement.
It could be that an account is being divided and one party is to pay the other. It could be that an item of marital property is being sold or refinanced and payment is being ordered to another. These are just a couple of examples.
When these payments are made, the party paying should likely consider getting a Satisfaction of Judgment. A Satisfaction of Judgment is a document signed by one party to acknowledge receipt of the payment. The Satisfaction of Judgment is then filed with the court.
This is beneficial to the paying party for multiple reasons. One, the court is put on notice that the debt has been satisfied. Two, the party who received the payment likely cannot later claim that they didn’t receive payment when they signed a Satisfaction of Judgment. Third, when a Satisfaction of Judgment is filed, it can protect the payor’s credit score by ensuring that the past due obligation does not show up on their credit report.
In the end, the Satisfaction of Judgments is important for parties paying an obligation in family court. Some parties might be tempted to overlook it. But it is a loose end worth trying up when an obligation is satisfied.
If you are going through a divorce or family law matter where there is a judgment or order for past due obligation, Stange Law Firm, PC can help. You can call us at 855-805-0595.