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The Divorce Buyout Agreement is utilized when divorcing couples in the United States decide to resolve property division through a buyout arrangement rather than selling assets to third parties. This document becomes necessary when one spouse wishes to retain specific marital assets (commonly the family home, business, or investment properties) by compensating the other spouse for their share. The agreement must comply with state property division laws and federal tax regulations, and typically includes detailed valuations, payment terms, transfer mechanisms, and mutual releases. A properly structured Divorce Buyout Agreement helps prevent future disputes and ensures clear documentation of the property transfer for legal and tax purposes.

1. Parties: Identification of divorcing spouses and their current contact information

2. Background: Brief history of marriage, divorce proceedings, and purpose of buyout

3. Definitions: Key terms used throughout the agreement

4. Property Valuation: Agreed values of assets subject to buyout

5. Buyout Terms: Specific terms of the buyout including payment amount and schedule

6. Release of Claims: Mutual release of future claims related to bought-out property

7. Tax Provisions: Treatment of tax liabilities and responsibilities