Separation Trust Fund Clause Samples
A Separation Trust Fund clause establishes a dedicated fund to hold and manage assets or payments in the event of a separation, such as divorce or business partnership dissolution. Typically, this clause outlines how the fund is created, what assets or amounts are to be contributed, and the conditions under which distributions are made to the parties involved. Its core practical function is to ensure that financial resources are set aside and managed impartially, thereby reducing disputes and providing financial security during the separation process.
Separation Trust Fund. The Employer agrees that in lieu of making contributions to a Separation Trust Fund, it will pay to each employee in addition to their regular monthly salary an amount equal to one point five percent (1.5%) of such regular monthly salary. The payment of such additional amount will be made on a monthly basis. It is understood and agreed that the additional payment will be considered to be completely separate and distinct from regular monthly salary for all administrative purposes.