What Is Property Settlement?

Understanding a property settlement in your divorce.

A divorce case is challenging and emotional on several levels. One of the most complicated aspects of a divorce is developing a fair and equitable property settlement. In the end, a property settlement has ramifications that last far into your future.

Function of a Settlement

The function of a property settlement is to divide the assets and debts accumulated during the course of a marriage.

Effects

Once you reach an agreement with your spouse regarding the assets and debts of a marriage and sign the settlement agreement, the court will include it as part of the final divorce decree.

Significance

A property settlement agreement is significant. Once signed and incorporated into a divorce decree, a property settlement agreement can only be changed in rare circumstances.

Benefits

By reaching a settlement agreement, you avoid having a judge decide who receives which assets and who is responsible for certain debts. Leaving these decisions in a judge's hands can result in a court order that might meet neither your nor your spouse's needs.

Expert Insight

Drafting a settlement agreement should not be left to chance. Your interests--and those of your spouse--are best served by engaging the services of a qualified attorney to prepare this document.

References

• Cornell Law School, Divorce: Overview
• "The Divorce Organizer & Planner;" Brette Sember; 2004
• "Essential Guide to Divorce;" Emily Doskow; 2008

Resources

• American Bar Association, Section of Family Law