A Divorce Settlement Agreement helps two divorcing spouses by detailing the division of assets, spousal support, child support, and, if applicable, child custody.

Table of Contents

• What is a Divorce Settlement Agreement?
• How to Write a Divorce Settlement Agreement
• Tips for Writing a Divorce Settlement Agreement
• Additional Points to Include in Divorce Settlement
• Frequently Asked Questions
• What happens if you violate a divorce settlement agreement?
• Can I create my divorce papers?
• Can a divorce settlement agreement be overturned?
• What paperwork do I need to file to ask for a divorce?
• Sample Divorce Settlement Agreement

What is a Divorce Settlement Agreement?

A Divorce Settlement Agreement, also known as a Marital Settlement Agreement (MSA) or Separation Agreement, is a legally binding contract that outlines the terms and conditions of a divorce or legal separation between a married couple. This agreement is typically negotiated and agreed upon by both parties and addresses various aspects of their separation, including:

1. Division of Marital Property: The agreement specifies how the couple's assets and debts will be divided. This may include real estate, personal property, bank accounts, investments, retirement accounts, and any other shared assets or liabilities.

2. Child Custody and Visitation: If the couple has children, the agreement outlines arrangements for child custody, visitation schedules, and decision-making authority (legal custody). It may also address issues related to parenting plans and holidays.

3. Child Support: The agreement includes provisions for child support payments, specifying the amount, frequency, and method of payment. Child support is typically based on state guidelines and the parents' incomes.

4. Spousal Support or Alimony: If one spouse is entitled to receive spousal support (alimony), the agreement outlines the amount, duration, and conditions of the payments. This depends on factors like the length of the marriage, financial need, and the parties' earning capacities.

5. Health Insurance and Medical Expenses: The agreement may address health insurance coverage for the children and the continuation of coverage for a spouse, as well as how medical expenses will be shared.

6. Tax Considerations: It can include provisions related to tax matters, such as how tax deductions and credits will be allocated, who will claim dependents for tax purposes, and how tax refunds or liabilities will be handled.

7. Debts and Liabilities: The agreement specifies how outstanding debts and liabilities, such as mortgages, credit card balances, and loans, will be apportioned between the spouses.

8. Division of Personal Property: It may detail the division of personal possessions, household items, and any other personal property.

9. Retirement and Pension Plans: If applicable, the agreement may address the division of retirement accounts, pensions, and other retirement benefits, including the use of qualified domestic relations orders (QDROs).

10. Name Changes: If one spouse intends to change their name following the divorce, this may be addressed in the agreement.

11. Dispute Resolution: The agreement may specify the process for resolving future disputes or modifications, such as mediation or arbitration, rather than going back to court.

12. Miscellaneous Provisions: It can include additional provisions as needed, such as life insurance requirements, confidentiality clauses, or any specific arrangements unique to the couple.

A Divorce Settlement Agreement is a crucial document in divorce proceedings because it allows the divorcing couple to have control over the terms of their separation rather than leaving critical decisions up to a judge. Once both parties agree to the terms and sign the agreement, it becomes a legally binding contract that can be enforced by the court. Each party needs to consult with an attorney to ensure their rights and interests are protected during the negotiation and drafting of the agreement.

How to Write a Divorce Settlement Agreement

Writing a Divorce Settlement Agreement is a complex legal process that often requires the guidance of an attorney to ensure it complies with applicable laws and adequately protects both parties' rights and interests. However, here are nine general steps to provide an overview of how such an agreement is typically created:

Step 1: Consult with an Attorney

• Before drafting any agreement, consult with an experienced family law attorney who can provide legal advice, explain your rights, and guide you through the process.

Step 2: Identify and List Assets and Debts

• Compile a comprehensive list of all marital assets and debts, including real estate, bank accounts, investments, personal property, loans, and credit card balances.

Step 3: Determine Asset Division

• Discuss and negotiate how marital assets and debts will be divided. Consider factors such as each party's financial situation, contributions during the marriage, and state laws.

Step 4: Child Custody and Parenting Plan

• If children are involved, create a detailed parenting plan and custody arrangement. Specify legal and physical custody, visitation schedules, holidays, and decision-making authority (legal custody).

Step 5: Child Support

• Determine child support obligations based on state guidelines and each parent's income. Include the amount, payment frequency, and how it will be adjusted as circumstances change.

Step 6: Alimony or Spousal Support

• If applicable, negotiate spousal support (alimony) terms, including the amount, duration, and any conditions for modification or termination.

Step 7: Tax Considerations

• Address tax-related matters, such as who will claim dependents for tax purposes, how tax refunds or liabilities will be handled, and the impact of various financial decisions on taxes.

Step 8: Miscellaneous Provisions

• Include provisions for health insurance coverage, medical expenses, life insurance, name changes, and any other relevant issues.

Step 9: Review and Finalize

• Carefully review the agreement with your attorney to ensure it accurately reflects your intentions and complies with state laws. Make necessary revisions and obtain your spouse's consent. Once both parties are satisfied, sign the agreement.

It's important to note that drafting a Divorce Settlement Agreement is a legal process that can vary significantly based on individual circumstances and state laws. As such, it is strongly recommended that both parties seek independent legal counsel to ensure their rights and interests are adequately protected throughout the negotiation and drafting process. Additionally, the agreement should be submitted to the court for approval as part of the divorce proceedings to make it legally binding.

Tips for Writing a Divorce Settlement Agreement

Writing a Divorce Settlement Agreement is a complex and legally binding process that requires careful consideration of various factors. Here are some tips to help you write a divorce settlement agreement:

1. Consult with Attorneys: Seek legal advice from experienced family law attorneys. They can provide guidance, ensure your rights are protected, and help you navigate the legal requirements.

2. Full Disclosure: Both parties must provide complete and accurate financial information. Hiding assets or liabilities can lead to legal consequences.

3. Clear and Specific Language: Use clear and specific language in the agreement to avoid misunderstandings or ambiguities. Define terms and provisions clearly.

4. Consider the Future: Anticipate future changes or contingencies and include provisions for them. For example, outline how child custody or support will be adjusted if circumstances change.

5. Fairness and Equity: Strive for a fair and equitable distribution of assets and debts. Consider factors such as each party's contributions, financial needs, and state laws.

6. Child-Centered Approach: If children are involved, prioritize their best interests when negotiating custody, visitation, and support arrangements.

7. Tax Implications: Be aware of the tax implications of your agreement. Consult with a tax professional to understand how decisions may affect your tax liabilities.

8. Legal Formalities: Ensure your agreement complies with state laws and legal formalities. Some states have specific requirements for divorce settlements.

9. Documentation: Keep records of all communications, drafts, revisions, and versions of the agreement. This documentation can be valuable in case of disputes.

10. Mediation or Alternative Dispute Resolution: Consider using mediation or alternative dispute resolution methods to help you and your spouse reach a mutually acceptable agreement.

11. Review Thoroughly: Carefully review the final agreement with your attorney before signing. Mistakes or omissions can be costly to rectify later.

12. Obtain Consent: Both parties should willingly and voluntarily agree to the terms of the agreement. Coercion or pressure can invalidate the agreement.

13. Submit to the Court: Once finalized and signed, submit the agreement to the court as part of your divorce proceedings. The court will review it and, if approved, make it legally binding.

14. Update Beneficiary Designations: After the divorce is finalized, update beneficiary designations on accounts, insurance policies, and retirement plans to reflect the terms of the agreement.

15. Enforceability: Ensure that the agreement is legally enforceable and not contrary to public policy. Some provisions may not be enforceable in court.

16. Seek Legal Advice for Modifications: If circumstances change after the agreement is in place, consult with an attorney to determine if modifications are needed and how to proceed legally.

Remember that a divorce settlement agreement is a significant legal document that can have long-lasting implications for your financial and personal life. Seeking professional legal advice is crucial to ensure that your rights and interests are protected throughout the process.

Additional Points to Include in Divorce Settlement

Certainly, in addition to the previous points mentioned, here are some more additional points to consider including in a Divorce Settlement Agreement if they are relevant to your situation:

1. Tax Credits and Deductions: Address how tax credits and deductions, such as the child tax credit, will be allocated between the parties, especially if children are involved.

2. Childcare Expenses: Specify how childcare expenses (e.g., daycare, after-school care) will be divided, including the responsibility for payment and reimbursement.

3. College Savings: Discuss contributions to college savings accounts (e.g., 529 plans) for the children's education and how these funds will be managed and allocated.

4. Life Insurance: Consider whether life insurance policies should be maintained for the benefit of the children or the spouse receiving spousal support, and how premiums will be paid.

5. Healthcare Decision-Making: Clarify how healthcare decisions for the children will be made, including matters related to medical treatment, surgeries, and emergencies.

6. Relocation: Include provisions regarding either party's potential relocation, especially if it affects visitation, custody arrangements, or communication with the children.

7. Access to Records: Ensure that both parents have access to important records, such as medical, educational, and extracurricular activity records.

8. Parental Conduct: Address behavioral expectations and parental conduct to ensure a safe and nurturing environment for the children.

9. Communication: Specify guidelines for communication between parents, including how disputes or concerns will be discussed and resolved.

10. Inheritance and Gifts: Determine how inheritances or significant gifts received by either spouse during the marriage or after separation will be treated.

11. Counseling or Therapy: Discuss whether counseling or therapy for the children or either spouse will be required, and how the costs will be allocated.

12. Social Media and Online Behavior: Include guidelines on appropriate online behavior, especially regarding posts or comments related to the other spouse or children.

13. Religious Upbringing: If religion is a significant aspect of your family, address how religious upbringing and practices will be handled.

14. Disability or Special Needs: If a child has special needs or disabilities, outline the responsibilities and financial arrangements for their care and support.

15. Visitation Enforcement: Specify the process for enforcing visitation rights if one parent is consistently denied access to the children.

16. Grandparent Visitation: If applicable, address grandparent visitation rights and how these will be maintained.

17. Spouse's Future Marital Status: Consider whether the agreement will be affected if one spouse remarries or enters into a new domestic partnership.

18. Social Security Benefits: Discuss any potential entitlement to Social Security benefits based on the other spouse's earnings.

19. Pet Custody: If pets are a part of your family, determine custody arrangements and responsibilities for their care.

20. Severability Clause: Include a severability clause to ensure that if any part of the agreement is found invalid, the rest of the agreement remains enforceable.

Remember that the goal of a Divorce Settlement Agreement is to provide clarity, fairness, and protection for both parties and any children involved. Work closely with your attorney to address all relevant issues and create an agreement that meets your family's specific needs.

Frequently Asked Questions

What happens if you violate a divorce settlement agreement?

If a spouse does not follow the provisions mentioned in the divorce settlement agreement, the other spouse may have the right to file a motion for contempt. The judge will then assess the circumstances and decide whether the spouse violated the decree’s orders. In this case, the judge might impose penalties such as a hefty fine or jail time.

Can I create my divorce papers?

Yes, you can create your divorce papers. When the division of property is fair and reasonable, with acceptable custody, parenting times, and support arrangements, you can move ahead with creating your divorce papers. The papers are usually just a formalization of the initial separation or divorce settlement agreement. However, it’s suggested you have an attorney review the documents before going to court.

Can a divorce settlement agreement be overturned?

Yes, you can overturn a divorce settlement agreement. However, there are only two instances where this would be allowed:

When there has been a change in your circumstances, and the terms of the agreement no longer reflect your situation, you can request a post-judgment modification. For example, if you’ve suddenly lost your job and can’t keep up with child support payments. If the change has to do with property division, the court will usually not amend the agreement.

Alternatively, you can file an appeal if you think the judge has made a mistake, like overlooking evidence, or disagree with their findings. You can only file the appeal within 30 days of the judge signing the document, and you will be required to prove that the judge made a mistake.

What paperwork do I need to file to ask for a divorce?

You should check with your state and country to determine the required documents, as they vary by state. For example, some states need you to provide Affidavits of Financial Means or Confidential Information Sheets. But the most common documents are:

• Dissolution of Marriage Petition

• Settlement Agreement

• Parenting Plan (if you have children)

• Court cover sheet if needed

• Summons to be served on your spouse (petitioner serves the respondent who has a certain number of days to respond, or a default judgment may be given)

Sample Divorce Settlement Agreement