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How to set the penalty for divorce agreement

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How to set the penalty for divorce agreement


        

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  • 2024-06-09 22:00:03

    The liquidated damages clause in the divorce agreement may specify the amount and time of the liquidated damages to be paid if one party fails to perform as agreed. If one party breaches the contract, the other party may bring a lawsuit to the court. At the time of signing the divorce agreement, both parties have reached an agreement on matters such as the division of common property, common debts and the upbringing of children. In order to ensure that both parties fulfill the agreement, liquidated damages can be agreed in the divorce agreement, with the liquidated damages clause as the guarantee.
    The liquidated damages can be determined according to the standards agreed by both parties in the divorce agreement. The agreed liquidated damages are lower than the actual losses. The observant party can sue to the court for increasing the liquidated damages. If the agreed liquidated damages are too high than the actual losses, the defaulting party can sue to the court for reducing the liquidated damages.
    Legal basis:
    Article 585 of the Civil Code of the People's Republic of China
    The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, or they may agree on the calculation method of the amount of compensation for losses arising from the breach. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are too high than the losses caused, the people's court or arbitration institution may, at the request of the parties, appropriately reduce them. If the parties agree on liquidated damages for delay in performance, the defaulting party shall perform its obligations after paying the liquidated damages.
    Article 1076 of the Civil Code of the People's Republic of China
    If the couple divorce voluntarily, they shall sign a written divorce agreement and apply for divorce registration in person at the marriage registration office. The divorce agreement shall specify the intention of both parties to divorce voluntarily and the consensus on matters such as child rearing, property and debt handling.
    Article 1078 of the Civil Code of the People's Republic of China
    If the marriage registration authority finds out that both parties are indeed willing to divorce, and that they have reached consensus on matters such as child rearing, property and debt handling, it shall register and issue a divorce certificate.

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