Penalty Provisions in Divorce Agreements

Most divorce matters are ultimately resolved with a Marital Settlement Agreement (MSA), sometimes also referred to as a Property Settlement Agreement (PSA).  An MSA is a contract between divorcing spouses, wherein they agree amongst themselves how their lives will proceed post-divorce.  It covers everything from child-related issues to finances.  Many times, clients want to give "teeth" to their agreements by adding "penalty clauses" if one spouse doesn't comply.  Typically, they are not enforced based on contract law principles.  However, the New Jersey Appellate Division recenty decided M