What Goes into a Divorce Settlement Agreement?
A divorce settlement agreement is the key document that outlines how you and your spouse will divide custody, support, assets, and debts. Whether through Mediation or Collaborative Divorce, it is important to understand what is included and have it reviewed by a legal advisor. A well-crafted agreement provides clarity, protection, and a smoother path forward.
What Is a Divorce Settlement Agreement?
A divorce settlement agreement, sometimes called a marital settlement agreement, is a legally binding contract between divorcing spouses that finalizes the terms of your divorce. It typically comes together toward the end of the divorce process, once you and your spouse have worked through and agreed on all the major issues.
This agreement will ultimately be submitted to the court for approval and becomes part of the final divorce judgment.
What Does the Settlement Agreement Include?
The settlement agreement covers all the key components of the divorce, including:
- Child Custody and Parenting Time: This includes both legal and physical custody arrangements as well as a parenting timeshare schedule, who the child lives with and when, scheduled for holidays and vacations, and how decisions about the child will be made.
- Child Support: The amount one parent will pay to the other for the support of their children, including how and when it will be paid and whether it will cover things like medical expenses or extracurricular activities.
- Spousal Support (Alimony): If applicable, this section details who will pay spousal support, how much, and for how long.
- Division of Assets and Debts: This is one of the most detailed sections, as it lays out exactly how bank accounts, retirement funds, real estate, vehicles, and other assets and liabilities will be divided. If one party is paying an equalization payment to the other to balance the asset split, that is addressed here too.
- Release of Claims: Often, the agreement will include language stating that you are both releasing one another from any future claims related to the marriage, ensuring there are no lingering legal obligations outside of what is stated in the agreement.
- Other Terms: This may include things like tax considerations, life insurance policies, college savings, and more, depending on the complexity of the case.
Who Prepares the Settlement Agreement in Mediation?
In mediation, the preparation of the divorce settlement agreement depends on who the mediator is:
- If the mediator is an attorney, their office typically drafts the agreement based on what you have agreed to during mediation sessions.
- If the mediator is not an attorney, such as a licensed document preparer (a role recognized in states like California), they can also prepare the agreement, though they cannot offer legal advice.
Regardless of who prepares the draft, you are both encouraged to have consulting attorneys review the agreement before signing. Consulting attorneys act as advisors, ensuring that their client’s interests are protected and that the agreement is legally sound.
Final Thoughts
A divorce settlement agreement is more than just a formality; it is the blueprint for how you will move forward separately. When done correctly and thoughtfully, especially through a non-adversarial process like mediation, it will provide clarity, peace of mind, and a strong foundation for co-parenting and financial independence post-divorce.
If you are in a divorce, make sure you understand what you are agreeing to, and don’t hesitate to seek legal guidance to review the final terms.
Lynette Kim is a Los Angeles based attorney specializing in Mediation and Collaborative Divorce solutions. She is keenly aware of the emotional toll divorce can have on you and your family and is committed to helping you navigate your divorce through the Mediation and Collaborative Divorce processes. She strongly believes a peaceful divorce is possible, resulting in a happier outcome for you and your family.
The Kim Mediation and Law Center is located at 3710 Wilshire Blvd in Los Angeles, CA. You can make an appointment by calling 213-351-1000 or visit www.kimmediationandlaw.com
Compassion for my clients is important to me, and that’s why I’ve remained a family law practitioner for 30 years — and still love what I do. I’m keenly aware of the emotional toll divorce can have on you and your family. As you navigate the rough waters of transition, my team and I will help you find your balance. We’re here to support you in making the best decisions for your future. I’ve seen the positive results again and again when couples embrace meditation or collaborative divorce. I’d be honored to share these practices with you and set your family on a healthy path.
