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Finance & Tax

Hold Harmless

A clause in a divorce agreement where one spouse agrees to protect the other from liability on a specific debt or obligation.

Understanding Hold Harmless

Hold harmless clauses are common in marital settlement agreements, particularly regarding joint debts. If one spouse agrees to pay a joint credit card, the hold harmless clause means they also agree to indemnify the other spouse if they fail to pay. However, hold harmless clauses do not bind third-party creditors — if the responsible spouse defaults on a joint debt, the creditor can still pursue the other spouse. The protected spouse's remedy is then to go back to court for enforcement.

Real-World Examples

The agreement included a hold harmless clause where he agreed to pay the joint mortgage and protect her from any liability if he defaulted.

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Apóyanos

Know someone going through a divorce? This could help them.

This definition is provided for educational purposes only and does not constitute legal advice. Divorce laws and terminology may vary by state and jurisdiction.

Always consult a licensed attorney in your area for advice specific to your situation.