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Term Definition Covenant - an agreement between to parties, signed and delivered, by which the parties pledge that something shall or shall not be done, or that stipulates that certain facts are true.
Application in Divorce As it applies in divorce, couples sometimes enter into covenants not to compete in connection with the equitable distribution of professional practice or business. Generally, a covenant not to compete in this situation means that the coventor (the person making the covenant) agrees to refrain from competing with the conventee for a certain period and in a certain area.

In general, in divorce convents not to compete happen in one of three forms. The first is a court-ordered covenant, which is executed when one party.

Questions may arise when one estate.

Courts are divided about their authority to distribution of property.

Courts see hypothetical covenants not to compete as speculative, and they cannot be used to diminish the value of marital property for purposes of distribution.

An actual covenant in favor of a third party that restricts earnings during a marriage is marital property, but one which changes income after a divorce is the party.