What is a Memorandum of Understanding (MOU)

What is MOU aka Memorandum of Understanding
  • There are several distinctions between a separation agreement and an MOU.

  • A memorandum of understanding (MOU) is a kind of like a no-frills, bare-bones promise, a letter of intent at best, while a separation agreement is a binding contract.

  • An MOU is created to chronicle the agreements arrived at by both partners during the mediation process.

  • MOUs are most useful in several American states, where the family law system has been reformed.

Compare Separation Agreement Non-binding MoU
Definition An agreement is a document by which parties commit to working together to reach a common goal. An MOU describes the terms of an agreement without being legally binding or involving the transfer of finances.
Traits It grants substantial rights to the parties. There should be a clear mention of another agreement that will be drawn, up at a later stage
Enforceable in a court of law? You can legally enforce this document in a court of law. This document cannot be legally enforced in a court of law.
Binding? Yes, always. Only if the MOU is signed with the intention of exchanging monies.

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