When you and your spouse decide to end your marriage, it can seem like there are a million factors to consider and documents to finalize, especially when you are emotionally, physically, and mentally drained and are ready to move toward a fresh start.
One of those items is a divorce settlement agreement, where you and your spouse must agree on the division of assets, child custody, child support, and spousal maintenance. While every divorce is different, reviewing divorce settlement examples can help give you an idea of what to expect as you prepare to negotiate or draft your settlement agreement.
In this blog, the divorce lawyers at Martine Law, a family law firm in Minnesota, cover everything you need to know about divorce settlement agreements. We’ll dive into what a typical divorce settlement agreement entails, negotiation tips, items to include, financial implications, using mediators and lawyers, and more.
What is a Divorce Settlement Agreement?
A divorce settlement agreement, also called a marital settlement agreement, is a legally binding contract between divorcing spouses that resolves all issues arising from the dissolution of the marriage. The agreement covers topics like:
- Child custody, visitation schedules, and child support
- Division of assets and debts
- Potential spousal maintenance/alimony
- Any other issues related to the divorce
The agreement can be comprehensive or focus only on certain key items like child custody. Settlement agreements are usually negotiated between the spouses, often with the help of family law attorneys or mediators. However, if you cannot agree on all issues, the court will decide these matters for you in a way that they feel is fair and equitable.
Courts prefer settlement agreements because they allow the parties to customize the terms, avoid litigation, and provide more certainty than leaving decisions in the hands of a judge. As long as the agreement does not contain illegal or unethical provisions, courts will generally accept the settlement.
Below are some examples of common provisions in divorce settlement agreements.
Child Custody and Support
Child custody and child support are often the most contentious issues in a divorce. When negotiating this section of your settlement, it’s important to focus on the best interests of your children.
Some general factors to consider when you’re negotiating a child custody settlement with your spouse include:
- Custody arrangements (Legal and Physical): Legal custody refers to which parent (if not both) will make important decisions about the child’s welfare, education, and healthcare. On the other hand, physical custody refers to which parent (if not splitting time between both) the child will physically live with.
- How holidays will be spent
- How disagreements over major decisions like school or medical care will be resolved
- Whether child support will be paid or received
- How additional expenses (medical expenses, school fees, etc.) will be divided
- Who will cover the child on their health insurance policy?
- Who will claim children as dependents on their tax returns?
A sample child support section may read:
“John will pay monthly child support of $500 to Mary for their minor child, Jane, due on the 5th of each month. Mary will provide health insurance for Jane through her employer’s plan. Uncovered medical expenses will be split 50/50. The parties will alternate claiming Jane as a dependent on their taxes, with Mary claiming her in odd years and John in even years.”
Division of Assets and Debts
As a state that follows an equitable distribution approach to allocating assets and debts in a divorce, negotiating a settlement agreement can be especially beneficial to ensure you and your spouse are reaching an agreement that you both feel is fair – without leaving it up to a judge to decide.
The settlement agreement will identify and value all marital property and debts, determine what is separate property, and set out who gets what.
A sample asset division section may state:
“The parties agree to sell the marital home located at 123 Main St. Upon sale, John shall receive 60%, and Mary shall receive 40% of the net proceeds. Each party shall keep any bank accounts currently in their own name. The parties agree to divide their retirement accounts 50/50 via QDRO.”
Spousal Maintenance/Alimony
Spousal support helps the lower-earning spouse maintain their standard of living post-divorce. The agreement should specify:
- Amount of maintenance owed
- Duration of payments
- Frequency of payments (monthly, lump sum)
- How payments will be made
- Circumstances permitting termination (remarriage, death, set end date)
A sample spousal support provision may state:
“John will pay Mary transitional alimony of $2,000 per month for a period of 24 months, beginning August 1. Payments will end upon Mary’s remarriage or death. The purpose is to assist Mary in obtaining education and skills necessary to re-enter the workforce.”
What Happens if we can’t Agree
If you and your spouse can’t agree on all the terms of a divorce settlement agreement, then any unresolved issues go before a family court judge. The judge will hear arguments from both of you and your lawyers before issuing a ruling on the disputed items.
Letting a judge decide key issues like asset division and child custody should be a last resort. Judges don’t know you or your family’s circumstances as you do, and you lose control over the divorce process and results when going before a judge.
Divorce Attorneys in Minnesota
Before signing a divorce settlement agreement, it is crucial to have an experienced divorce attorney review the terms to ensure your rights are protected. A lawyer can help negotiate fair compromises, provide options you may not have considered, and ensure the agreement complies with laws in your state.
Contact the Minnesota divorce attorneys at Martine Law to receive guidance tailored to your unique situation.
