Divorce Settlement Agreement
What is a divorce Settlement Agreement?
A divorce settlement agreement is a part of the divorce the delineates the assignment of assets, responsibilities, and finances of the divorcing couple. An important and related part of the divorce is the Parenting Plan.
The divorce Settlement Agreement is effectively the same whether you file for uncontested divorce, contested divorce, or go through divorce mediation or arbitration.
A well written divorce settlement agreement is customized to resolve present areas of concern and mitigate common future conflicts that you probably have not considered.
What does a divorce Settlement Agreement cover?
A divorce Settlement Agreement includes, but is not limited to, child custody and visitation, spousal support, equitable distribution of marital property, distribution of cash, investment and retirement funds.
What happens after divorce Settlement Agreement is approved?
When the court accepts and approves the new terms go into effect immediately. This can reset monthly payments, living arrangements for children, and more.
Can a divorce Settlement Agreement be changed?
Yes, a divorce Settlement Agreement can be changed by filing a divorce modification petition. After your divorce if final, you must wait two years before filing for a modification. After filing any modification request the two year wait period starts again. To get a divorce modification you must prove a significant or dire change in circumstances.
Modifications typically address changing spousal support, child support, custody and visitation terms. Compelling reasons are substantial changes in income by either person, chronic problems posing risks to minor children, and children (14 or over) who want to change the parent with whom they live.
Other Potential Considerations
Every divorce has its own unique set of circumstances, especially with regards to assets. Here are a few things that you may need to know when developing your settlement agreement:
Dividing a Business: In a divorce involving a business, to achieve equitably distribution, the court considers contributions of each spouse and the value of the business. This may result in a buyout of one spouse's interest, or sale of the business and splitting the proceeds of the sale.
Social Security Benefits: A divorced wife get greater Social Security benefits based on her ex-spouse's earnings record if their marriage lasted at least 10 years.
Health Insurance: A divorce settlement agreement can require the husband to cover the wife's health insurance costs for a defined period of time.
Negotiation and mediation: Divorce settlements are often negotiated through legal counsel or mediation to reach a mutually agreeable agreement.