Divorce Settlements
Divorce settlements offer a way for spouses to resolve their divorce without a trial. While some divorces involve complex legal battles, many spouses prefer the control and privacy that settlements provide. These agreements can be created at any point during the divorce process. It is important to remember that divorce laws and procedures vary significantly by state, and these variations can affect the content and enforceability of any settlement.
What Is a Divorce Settlement Agreement?
A divorce settlement agreement, also known as a marital settlement agreement, is a legally binding document that outlines the final terms of a divorce. It identifies the spouses, their marriage and separation dates, and key procedural details such as the date the divorce was filed. If children are involved, it includes their names and ages. The agreement specifies the reasons for the divorce, the issues to be settled, and the specific terms of each arrangement. Both parties must sign and date the agreement, confirming their acceptance of the terms. A judge then can incorporate the settlement into the final divorce decree.
Dividing Assets and Debts
The division of marital assets and debts is a central component of most divorce settlements. This process requires a complete inventory of all real estate, vehicles, bank accounts, retirement accounts, personal property, and debts, collectively known as the marital estate. Some spouses may aim for a division that reflects how a court might allocate these assets in a trial, while others may not. If the division is unequal, the agreement may need to state that both parties are aware of and voluntarily agree to the imbalance. The agreement should also specify deadlines for property transfers and assign responsibility for ongoing liabilities.
Spousal Support (Alimony)
Spousal support, or alimony, is financial assistance paid by one spouse to the other. A settlement agreement must clarify whether spousal support will be paid, and if so, the amount, timing, and duration. (Courts in some jurisdictions may take a closer look at indefinite support arrangements.) The parties can also specify events that may terminate or modify the support obligation, such as remarriage or a significant change in income. Insurance policies may be used to secure spousal support in cases of heightened financial risk.
Child Custody, Support, and Parenting Plans
When minor children are involved, a settlement agreement should address child custody matters. Parenting plans outline the time that each parent will spend with the child and indicate who can make major decisions regarding education, health care, and religious upbringing. A court will prioritize the child's best interests when reviewing a proposed parenting plan. If the parents want to arrange for child support, meanwhile, the agreement should specify the support amount, the payment schedule, and any conditions that could trigger modifications.
Finalizing the Settlement
After the spouses sign the written agreement, the necessary divorce paperwork is submitted to the court. The judge reviews the settlement to ensure compliance with state law and protect the parties' rights. If approved, the settlement becomes part of the final divorce order. The agreement remains in effect unless modified through a subsequent court process. Each spouse should retain a copy of the settlement for future reference, since it carries the same legal weight as a court order.
Modifications to Settlements
Courts may allow modifications under certain circumstances, such as serious financial difficulties or remarriage. Some agreements may require mediation before returning to court for modifications. If a party fails to comply with the settlement terms without getting a modification, the other party may seek court intervention through contempt proceedings or other enforcement mechanisms.
