Why Do We Need a Settlement Agreement?

This is a question that I am asked all the time! The short answer is that it is almost always necessary to have a settlement agreement in order to obtain an uncontested divorce.

Think of it this way. Since a divorce in New York must be granted by a judge, how will he or she know what you’ve agreed to do unless you present them with the terms you have agreed to?

A comprehensive settlement agreement, often called a Marital Settlement Agreement, serves this and several other crucial purposes:

• It clearly spells out the terms of your divorce. This includes how you will divide your property (real estate, bank accounts, retirement funds, personal belongings), allocate debts, address spousal support (alimony), and, perhaps most importantly, how you will parent and support your children if you are no longer living together.
• It prevents future disputes. By having everything in writing and agreed upon beforehand, you significantly reduce the chances of misunderstandings or disagreements in the future. This saves you time, money, and emotional stress down the road.
• It streamlines the legal process. When you submit a well-drafted settlement agreement to the court, the judge can review it and incorporate it into the final divorce decree.
• It demonstrates your mutual agreement to the court. The court wants to see that you and your spouse have resolved your issues amicably. A signed settlement agreement is the strongest evidence of this.

So, while the law might not mandate a separate settlement agreement in every single uncontested divorce scenario, it is the most practical and prudent way to ensure your divorce is truly uncontested and that you can move forward with clarity and certainty.