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Cash Settlement

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Cash Settlement

When parties want to equalize or make a property division more fair by having one party pay a sum of money to the other, courts refer to that as a cash settlement.

For example: Spouse A is awarded the house and two cars with an aggregate net, tax-adjusted value of $100,000. Spouse B is awarded retirement accounts with a net, tax-adjusted value of $200,000. Spouse B could pay a cash settlement of $50,000 to make the property division more fair.

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