Free Trader Agreements

Free Trader Agreements allow a husband or wife to purchase property after the date of separation but before an absolute divorce without the necessity of having the other spouse being placed on the deed. The most common scenario—husband and wife separate. One spouse stays in the former marital home. The other spouse moves out and intends on buying a new place. However, the paperwork gets caught up because the spouses refuse to both sign and be on a deed for new property together. Obviously, the parties do not want this. What to do? This is the basic premise behind a Free Trader Agreement.

With a Free Trader Agreement, the spouses can freely purchase real property without placing the other spouse on the deed. This, by no means, will allow one spouse to sell the former marital home without the consent of the other—that is not what this is for. Instead, this allows the “purchasing” spouse to keep that real property as a separate asset and a separate obligation (ie—the mortgage). This can have huge value for both parties.

This document can also address the obligation that each party has to the other to refrain from attempting to get credit in the others’ name, as well as to promptly pay all debts and financial obligations incurred from the date of separation on.

Free Trader Agreements should be drafted in accordance with N.C.G.S. 52-10 and 39-13.4, they must be signed by both parties and notarized, and are filed with the Register of Deeds.

At Rech Law, P.C. we can help guide you through the process. If you are interested in learning more about entering into a Free Trader Agreement, please contact our office today.