Free Divorce Settlement Agreement Template

The Divorce Settlement Agreement is a critical legal document that protects all parties involved and establishes clear legal obligations from the outset. This free template is designed for use in all 50 US states.

What Is a Divorce Settlement Agreement?

A Divorce Settlement Agreement is a legally binding agreement that defines the rights, responsibilities, and obligations of the parties involved. It creates a clear legal framework that courts can enforce and that protects all parties in the event of a dispute or unforeseen circumstances.

When Do You Need a Divorce Settlement Agreement?

• For an uncontested divorce where both spouses agree on all terms
• When dividing marital property, debts, and assets
• When establishing spousal support (alimony) terms
• As part of a comprehensive divorce package with child custody documents

Legal Considerations

• Divorce settlement agreements must be approved by a family court judge to be enforceable as a court order
• Community property states (CA, TX, AZ, NM, NV, LA, WA, ID, WI) divide marital property 50/50 by default; equitable distribution states divide based on fairness factors
• Retirement account divisions require a Qualified Domestic Relations Order (QDRO) — a separate court order beyond the settlement agreement
• Spousal support (alimony) is taxable to the recipient and deductible for the payor under pre-2019 divorces; reversed for divorces finalized after 2018

State-Specific Requirements

Requirements and enforceability standards for this document vary by state. This template follows general US legal principles and should be reviewed for compliance with your specific state's statutes. Consult a licensed attorney in your state for high-stakes transactions.

How to Complete This Document — Step by Step

1. Inventory All Marital Assets and Debts
   List all property, accounts, investments, and debts acquired during the marriage.
2. Agree on Property Division
   Specify who gets what: the marital home, vehicles, bank accounts, retirement accounts, business interests.
3. Address the Marital Home
   Decide: one spouse keeps the home and buys out the other, or the home is sold and proceeds are split.
4. Allocate Marital Debts
   Mortgages, car loans, credit card debt, student loans — specify who is responsible for each debt.
5. Define Spousal Support
   If applicable: amount, frequency, duration, and circumstances that terminate support.
6. Address Taxes
   Agree on who claims dependents, how to handle joint tax returns for the year of divorce, and allocation of any tax refunds or liabilities.

Common Mistakes to Avoid

• Forgetting retirement accounts and pension plans — these are often the largest marital asset
• Not getting a QDRO to divide retirement accounts — without it, you cannot actually access the other spouse's retirement funds
• Overlooking hidden assets — professional valuation of businesses and investments is important
• Not addressing what happens if one party fails to refinance a joint debt from their name