Divorce Settlement Agreement

It depends on where you live and whether your divorce is contested or uncontested. If you both agree on everything, then you can be divorced in as little as three months, depending on your location. Some states have a mandatory separation or waiting period before a divorce can be finalized. If one party cannot be found or does not agree, then your divorce could take up to two years to be complete. The more you agree and the less acrimonious your divorce is, the faster and easier it will be to complete.

In an uncontested divorce, you both agree to divorce and you come up with settlement terms you can both live with without a trial or court intervention. An uncontested divorce is not dispute or negotiation free; it simply means you were able to reach an agreement without resorting to having a judge making the decisions for you. There are some clear benefits to an uncontested divorce, including less stress for both parties, lower costs, and a faster resolution.

In a contested divorce, one party either does not want to divorce at all or the spouses simply cannot agree on the terms. Common areas of dispute include child custody, child support, alimony, and the division of property. When you cannot reach an agreement, you will need to head to court for a judge to decide on these points for you. A contested divorce takes longer, costs more, and is generally more stressful and hostile than an uncontested divorce.

There are two types of child custody: physical custody and legal custody. When a parent in a divorce proceeding receives physical custody, that parent has the right to have the child in question live at the parent's residence.

If the court awards the parents joint physical custody, then the child will split his or her time living with each parent. This often happens if the two parents live close enough to make this option practical. When the child lives mainly with one parent, that parent will have custody of the child while the other parent can gain visitation rights.

Legal custody gives a parent the right to make important decisions about the child’s upbringing, including such important matters as the child's religion and schooling. Again, a court may choose to award joint legal custody to both parents. However, where only one parent receives physical or legal custody, that parent is said to have sole custody of the child in that regard.

Ideally, you and your partner will be able to work out a child custody agreement as part of your separation or divorce agreement. If the court is left to decide, they will make the decision based on the best interests of the children involved. Your state will have specific guidelines designed to help determine custody, but in general, children are best served when they have time with both parents. If you both agree on where the children should live, who should care for them, and how often they should visit the non-custodial parent, then this information can be included in your divorce settlement agreement and eventually merged into your divorce decree.

It is not necessary to hire an attorney to handle a divorce. That said, for particularly complicated divorces or where large sums of money are at stake, a lawyer will help ensure that his or her client’s interests are best protected. Common disputes include those concerning the custody of children, the question of alimony, and the division of joint assets. You may need an independent mediator to help sort out these issues. Most couples want to sort out these matters as soon as possible, so often an attorney or a mediator offers the best bridge to a satisfactory solution for both financial and emotional matters.

If you and your spouse have been unable to reach an agreement on a divorce settlement, you—with the help of your attorneys or mediators if you are using them—may decide to submit the areas under dispute before a judge at a pretrial conference. This sort of conference normally takes place in the judge's chambers.

If you are using attorneys and the divorce is not mutual or you cannot reach an agreement in terms of child custody, estate distribution, and alimony, then you will probably have two different attorneys representing your individual concerns and interests. These attorneys will put forward your two different positions to the judge at the pretrial conference, and the judge will make recommendations for a just settlement. These recommendations do not bind the parties but help to determine what will happen at the trial. They are also often an impetus to come to an agreement before the trial date.

Even if a pretrial conference cannot bring an early settlement, a trial date will be set, which could take several months. In the period leading up to the trial, your attorney will be undertaking certain tasks as part of the trial preparation. This could include the interviewing of useful witnesses, taking depositions, studying reports from experts, and reviewing any facts submitted by your ex-spouse.

Obviously, if there is a large estate to consider, a trial may be the only way to ensure a fair distribution of the wealth. You can expect to pay a lot of money to go through the trial stage. In the end, you will have no choice but to accept the decision made by the judge, as no jury is involved in divorce proceedings.

If a divorce has become a reality for you, alimony payments may become a necessity. This is most likely the case if one spouse’s earnings are more than the other’s and you have been married for a minimum number of years. If the court orders you to pay alimony, you will need to pay it once a month until a specific date determined by the judge.

There are certain conditions when alimony may cease, including if your spouse remarries, if your children become no longer classified as dependents, if your former spouse does not make at least a minimal effort to support his or herself, and if the recipient of the alimony dies.

When investments and assets are transferred, a whole new ball game emerges when it comes to paying taxes. You will want to know your tax situation in advance of reaching a financial settlement with your ex-spouse. You must inform the IRS as soon as you know your new marital situation in order to avoid paying either too little or too much tax.

Alimony, or spousal support, can be included in your divorce settlement agreement, specified in a prenuptial agreement, or determined by the court.