Understanding Settlement Agreements in Divorce

Not every divorce includes a settlement agreement. This is what separates 'contested' divorces from 'uncontested' ones. If you’ve heard of a divorce dragging on for years, it likely means the parties couldn’t agree on the terms. But if a divorce was wrapped up in just a few months, it probably means the parties reached an agreement early on—even before any legal papers were served.

What Is a Settlement Agreement?

A settlement agreement contains the agreed-upon terms between spouses about how to handle their shared responsibilities, property, and, if applicable, arrangements for their children.

Is a Settlement Agreement Required/Necessary to Get Divorced?

No. The terms of a settlement agreement should be fair and acceptable to both parties in their circumstances.

Why Have a Settlement Agreement?

If you and your current spouse can work together to reach a settlement agreement, your divorce will likely be less complicated, less stressful, faster and cheaper.

What Does a Settlement Agreement Cover?

The headings typically covered in a settlement agreement are the following:

1. Division of Assets

   • How to split properties (e.g., the family home, vehicles).

   • Division of furniture and household items.

   • Division of pension.

   • Handling of other shared belongings.

2. Maintenance

   • Whether one spouse will pay spousal maintenance to the other.

   • The amount and duration of the spousal maintenance.

3. Arrangements for Minor Children (if there are children involved)

   • Primary residence: Where the children will live most of the time.

   • Contact rights: When and how the other parent will spend time with the children.

   • Removal of children: Rules for taking the children out of the country.

   • Maintenance for minor children: The amount(s) each party will pay towards the maintenance of the minor children.

4. Other Aspects Relevant to the Divorce

When is a Settlement Agreement Signed?

A settlement agreement can be drawn up and signed at any stage before the divorce trial concludes. If the parties reach a settlement before a summons is issued, the divorce can proceed as uncontested. If no agreement is in place when the summons is issued, the case usually starts as contested, although it can still settle later (provided the terms are fair and acceptable).

How to Draft a Settlement Agreement

We strongly recommend that you seek the assistance of a professional with the necessary expertise to draft a Settlement Agreement.

Need Help with Your Settlement Agreement?

We can draft a settlement agreement tailored to your specific circumstances, covering all the necessary terms and ensuring it meets the court’s requirements. Contact Us for more information – queries are free.