How to Write a Property Settlement Agreement

This article was co-authored by Scott Levin. Scott Levin is a Divorce Mediator & Family Lawyer, as well as the Founder of San Diego Divorce Mediation. With nearly 20 years of experience, he specializes in peacefully mediating divorces so couples split amicably. He holds a law degree from the University of Chicago School of Law and a Bachelor’s degree in Metropolitan Studies from New York University. Additionally, Scott is a licensed attorney in California, a Certified Divorce Financial Analyst, and a member of The Academy of Professional Family Mediators.

There are 10 references cited in this article, which can be found at the bottom of the page.

This article has been viewed 102,861 times.

When you divorce or separate, you need to divide your property and debts with your ex-spouse. Accordingly, you should draft a property settlement agreement. In the agreement, you identify joint property and debts. You then divide them between the two of you. Before you can write the property settlement agreement, you must first decide what you want. A property settlement agreement may be part of a larger separation or divorce settlement agreement.

Reaching an Agreement

• You might want to meet with a lawyer for a consultation. In the absence of an agreement, your state law will determine who gets what. Accordingly, you should understand the “default” rules before going into negotiations.
• For example, if you are entitled to half of all marital assets, there is no reason to get less than half in the marital settlement agreement.

• In a “common law” state, any asset acquired during marriage belongs to the person who bought it. However, if both names are on the deed or title, then that piece of property belongs to each.
• In a “community property” state, things are different. All earnings and property bought with earnings belong equally to both spouses as community property. Community property starts with marriage and ends on the date of your separation. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. [1] X Research source
• In community property states, a spouse’s separate property is limited to what they bought before marriage, what they bought after separation, or what they have individually inherited or were given as a gift.

• In a common law state, both spouses owe a debt only if it benefited the marriage, such as to buy food, or if both spouses jointly signed for the debt. [2] X Research source All other debts are separate.
• In a community property state, most debts acquired during marriage are shared equally by the spouses. There are some wrinkles which you should discuss with a lawyer. [3] X Research source
• Furthermore, in a community property state, the debt is yours alone if you incurred it before marriage or after separation.

• You might not reach an agreement on everything in the first meeting. That’s okay. Continue to meet and work down through your assets and debts, dividing them between you.
• Continue to meet so long as you feel you are making good progress.

• Many courthouses have mediation programs. You should stop in and check.
• You might also find mediators in your phone book or by searching online. Your local or state bar association might also keep a list.
• Generally, you will divide the costs of mediation evenly. Mediators typically charge about $100-200 an hour, though the cost will depend on location. [4] X Research source

Starting Your Property Settlement Agreement

• Avoid copying word for word. Instead, analyze whether your situation is slightly different and adjust the form accordingly.

• Give your page one-inch margins on all sides.
• You can title the document “Property Settlement Agreement.” Put the words in all caps, bolded, and centered. [5] X Research source

• For example, you can write, “We are Michael Smith, (‘Husband’) and Julie Smith, (‘Wife’). We were married on May 31, 2000 and separated on February 1, 2017. Because of irreconcilable differences, our marriage has broken down.” [6] X Research source
• If you’re a same-sex couple, you can use your first names instead of “Husband” and “Wife.” Also use first names if you are ending a domestic partnership.

• For example, you can write, “Each of us states that we have made full disclosure, and that we have included everything we are aware of when listing assets that we own. Each of us states that we believe the other person has been forthcoming when writing this property settlement agreement. We agree to be bound by this agreement and agree to exchange any papers needed to complete this agreement.” [7] X Research source

Dividing Assets and Debts

• tangible assets, such as furniture in your home, a vehicle, jewelry, art, etc.
• your pets
• cash accounts, savings bonds, and other financial instruments
• all or part of the cash value of a life insurance policy
• sentimental gifts of little material value

• If you didn’t have any joint property, then you can write, “We have no community property” or “We have no marital property.”

• credit card debts
• student loans
• debts owed to department stores or other vendors
• personal loans

• As a rule of thumb, you should assign the debt to the person who benefited the most from the debt. For example, one spouse should assume the loan for their car.
• If you didn’t have any unpaid debts, this section could simply read: “We have no unpaid joint debts” or “We have no unpaid community obligations.”

• For example, don’t simply identify a vehicle as “car.” Instead, write “2015 Ford Focus” and the Vehicle Identification Number (VIN).
• Even if you and your spouse have already divided a property, it's important to spell out the terms in a divorce settlement or agreement.

• For example, you could write, “Wife will live in the home, located at 1234 South Street, Any City, until the earliest of the following: the youngest child turns 18, graduates high school, or is emancipated. While living in the house, Wife agrees to pay all expenses, which includes mortgage payments, insurance, utility bills, maintenance, and taxes.” [11] X Research source

• You might want to give one spouse the opportunity to purchase the other spouse’s portion of the equity.

• You can waive maintenance by stating: “Husband and Wife each waive any claim to spousal maintenance now and for all time.” [13] X Research source

Finalizing Your Agreement

• Add a statement that each spouse has been advised by independent attorneys of your own choosing. [14] X Research source
• State that the agreement is the final agreement related to the matters included in the document.
• Agree that the winning party in a lawsuit is entitled to reasonable costs and attorney’s fees. This provision can help you avoid frivolous lawsuits.

Show the draft to a lawyer. Before signing, each side should have their own lawyer look it over. Don’t use the same attorney. Instead, each spouse should have independent counsel. Meet to discuss any changes each side’s lawyer has suggested.

Insert signature blocks. There should be a line for each spouse to sign. Depending on your state, you may also need two witnesses, who should have signature lines as well. [15] X Research source

• Remember not to sign your agreement until you appear in front of the notary. You can find notaries at your courthouse, town office, or at most large banks. Bring acceptable forms of personal identification, such as a valid passport or state-issued ID.

• You may have to attach your settlement agreement to a petition or other document. Ask your lawyer what you need to file.
• Each spouse should keep a copy of the property settlement agreement for their records.

Expert Q&A

Tips

You Might Also Like

1. ↑https://www.findlaw.com/family/marriage/what-s-mine-is-mine-what-s-yours-is-mine-who-owns-what-in.html
2. ↑https://www.nolo.com/legal-encyclopedia/debt-marriage-owe-spouse-debts-29572-2.html
3. ↑https://www.findlaw.com/family/marriage/what-s-mine-is-mine-what-s-yours-is-mine-who-owns-what-in.html
4. ↑https://www.nolo.com/legal-encyclopedia/divorce-mediation-faq-29035-6.html
5. ↑https://www.courts.ca.gov/documents/propagreeinst.pdf
6. ↑https://www.courts.ca.gov/documents/propagreeinst.pdf
7. ↑https://www.courts.ca.gov/documents/propagree.pdf
8. ↑https://www.courts.ca.gov/documents/propagreeinst.pdf
9. ↑https://www.courts.ca.gov/documents/propagreeinst.pdf

1. ↑https://www.courts.ca.gov/documents/propagreeinst.pdf
2. ↑https://www.findlaw.com/family/divorce/sample-form-property-settlement-agreement.html
3. ↑https://www.findlaw.com/family/divorce/sample-form-property-settlement-agreement.html
4. ↑https://www.courts.ca.gov/documents/propagreeinst.pdf
5. ↑https://www.findlaw.com/family/divorce/sample-form-property-settlement-agreement.html
6. ↑https://www.findlaw.com/family/divorce/sample-form-property-settlement-agreement.html
7. ↑https://www.findlaw.com/family/divorce/settlement-agreements-and-court-approval.html

About This Article

This article was co-authored by Scott Levin. Scott Levin is a Divorce Mediator & Family Lawyer, as well as the Founder of San Diego Divorce Mediation. With nearly 20 years of experience, he specializes in peacefully mediating divorces so couples split amicably. He holds a law degree from the University of Chicago School of Law and a Bachelor’s degree in Metropolitan Studies from New York University. Additionally, Scott is a licensed attorney in California, a Certified Divorce Financial Analyst, and a member of The Academy of Professional Family Mediators. This article has been viewed 102,861 times.

If you’re getting divorced or separated, you’ll want to write a property settlement agreement to determine how your property will be divided. Sit down with your spouse and agree on how you’ll divide your property and debts, like furniture, vehicles, pets, cash accounts, savings bonds, and loans. You’ll also need to agree on whether one of you will stay in the house or if you’ll sell it. If you can’t reach an agreement after a few meetings, consider going to mediation, where a professional can help you settle things. Once you’ve reached an agreement, get a sample agreement from your local court or draft your own. You’ll need to include both your names, your marriage date, and separation date. Then, detail who will receive each of your assets and debts. You’ll both need to sign the agreement, then file it with your court. For more tips, including how to format your agreement, read on.

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