A divorce settlement agreement (also called a marital settlement agreement) is a written contract between spouses that resolves all issues in their divorce: property division, child custody, child support, and spousal support. A well-drafted agreement can avoid trial and save both sides thousands of dollars.
Why settle instead of going to trial
- Cost — a contested divorce trial can cost $20K–$50K+ per side. A settlement costs a fraction of that.
- Control — a judge decides your fate if you go to trial. In a settlement, you decide.
- Privacy — court proceedings are public. Settlement agreements are usually private.
- Speed — settlements can be finalized in weeks. Trials can take months or years.
Key terms
Property division
- Marital property — assets acquired during the marriage (home, retirement accounts, bank accounts, vehicles).
- Separate property — assets owned before marriage or received as gifts/inheritance (not subject to division).
- Debt division — who pays which debts (mortgage, credit cards, student loans).
Child custody
- Legal custody — who makes major decisions (education, healthcare, religion).
- Physical custody — where the children live and the parenting time schedule.
- Joint vs. sole — most courts prefer joint custody unless there's a safety concern.
Child support
- Calculation — most states use a formula based on both parents' income, the number of children, and the custody arrangement.
- Expenses — who pays for healthcare, education, childcare, and extracurricular activities.
Spousal support (alimony)
- Temporary — paid during the divorce process.
- Rehabilitative — paid for a set period to allow the receiving spouse to become self-supporting.
- Permanent — paid indefinitely (rare in modern divorces, usually reserved for long marriages).
The most important section of any divorce settlement is the custody arrangement. Put the children's needs first — courts will.
Make it legal
- Both spouses sign.
- The agreement is filed with the court and incorporated into the final divorce decree.
- Each spouse should have independent legal counsel review the agreement.
A state-specific divorce settlement agreement drafted to your situation takes about ten minutes.