How to Prepare for Your Divorce's Mandatory Settlement Conference

A Mandatory Settlement Conference, often called an MSC, is a court-ordered meeting designed to help divorcing parties resolve their disputes before trial. In most California family law cases, the court will require the parties to attend an MSC before allowing the matter to proceed to trial.

The purpose of an MSC is straightforward. It is intended to encourage settlement, narrow the issues, and reduce the time and expense of litigation. Trials are costly, time-consuming, and emotionally draining. Courts strongly prefer that parties resolve their disputes by agreement whenever possible. An MSC creates a structured opportunity for meaningful negotiations with the assistance of the court.

Local Rules and Temporary Judges

Each county usually has its own local rules that govern how an MSC is conducted. Judges have the ability to make different orders than what the local rules require if that makes sense for the case. These local rules or judge's separate rules may set specific deadlines for filing and serving settlement conference briefs, updated income and expense declarations, or other required documents.

Some counties use temporary judges to help with settlement conferences. A temporary judge is often an experienced family law attorney who volunteers or is appointed to assist the court in that capacity. The temporary judge does not represent either side. Instead, the temporary judge works with the parties and their attorneys to facilitate settlement discussions, evaluate the strengths and weaknesses of each position, and help the parties reach a resolution if possible.

In some counties, a sitting judge or commissioner handles the MSC. Regardless of who presides, the goal is the same: to promote informed, realistic settlement discussions.

What Happens If the Case Settles

If all issues settle at the MSC, the parties will prepare a written settlement agreement. In a divorce or parentage case, this agreement is typically incorporated into a judgment. The judgment is then signed and submitted to the court for entry (which means the court approving and filing it). Once entered, it becomes a binding and enforceable court order.

If only some of the issues are resolved, the parties may enter into a partial settlement. The resolved issues are written into a partial judgment, while the remaining issues proceed toward trial. Narrowing the issues can significantly reduce the cost of trial.

It is important to exercise caution before signing any documents at an MSC

Settlement conferences can be intense and time-pressured. Parties may feel emotional or very tired after hours of negotiation. Signing documents without careful review is not smart and rarely has there been careful review at the MSC unless there has been an exchange of that judgment or settlement details before.

Settlement terms should be clearly drafted, accurate, and complete. Once signed and entered as a court order, correcting mistakes can be difficult and sometimes impossible. Always ensure that you and your attorney have carefully reviewed the language before you sign anything and all your questions are answered. There is no such thing as being 90% sure. It is 100% or nothing.

How to Prepare for a Mandatory Settlement Conference

Preparation is essential to a successful MSC. An MSC is not a casual meeting. It is a serious negotiation session that can determine the outcome of your case.

Work closely with your lawyer well in advance of the conference. Preparation should include the following:

Current income information

Bring and require from the other side up-to-date proof of income, including recent pay stubs, profit and loss statements if you are self-employed or are a business owner, and any other sources of income. Updated Income and Expense Declarations are often required. Accurate income information is essential for calculating child support, spousal support, and attorney's fees.

Current account statements

Gather the most recent statements for all bank accounts, retirement accounts, investment accounts, credit cards, and loans.

Community versus separate property

Be prepared to discuss which assets and debts are community property and which are separate property. By the time you get to the MSC, much of this should have been determined by your attorney and expert. You should be ready to provide supporting evidence for your position and require the other side to provide it for their positions. This is not a game or a negotiation in the blind. Evidence of claims is essential or there are no claims.

For example, if you claim that a bank account is separate property because it was funded before marriage or by inheritance, you should have documentation that supports that position. Clear documentation strengthens your negotiating position.

Valuations of assets

Major assets should be valued before the MSC whenever possible. This includes homes, rental properties, businesses, professional practices, retirement accounts, and other significant assets. Real estate appraisals and business valuations require expert involvement. Without reliable valuations, meaningful settlement discussions are difficult.

Child custody and parenting plans

If custody is at issue, come prepared to discuss a proposed parenting plan in detail. This includes regular schedules, holidays, vacations, transportation, and decision-making authority. The focus should always be on the children's best interests. Courts expect parents to make a good faith effort to resolve custody issues in a way that promotes stability and the children's well-being.

Experts

If financial experts or other professionals are involved in your case, it may be helpful for them to be available during the MSC. At a minimum, your attorney should have their reports and be prepared to explain their conclusions. Expert input can significantly influence the value of assets and income determinations.

Settlement strategy

Before the MSC, discuss with your attorney your goals, your bottom line, and areas where you are willing to compromise. You should understand the likely range of outcomes if the case goes to trial. Informed clients make better decisions.

The Importance of Reasonable Compromise

Settlement requires compromise. It is rare for either side to receive everything they want. If you expect your best case scenario at an MSC, prepare to be disappointed. A successful MSC often reflects thoughtful give and take on both sides.

However, compromise must be reasonable. Do not agree to terms that are clearly unfair, unsupported by the law, or financially damaging simply to end the case. A rushed or ill-considered agreement can have long-term consequences, especially in cases involving children, support, or significant assets.

The right settlement is one that resolves the case on factually and legally sound terms, not one that is reached at any cost. With proper preparation and sound legal advice, a Mandatory Settlement Conference can be an efficient and effective way to conclude a divorce case while maintaining control over the outcome.