All You Need To Know About Divorce Settlement Contracts

An out-of-court settlement is a cheap, easy and effective way to finalise your marriage. Read the excerpt below to learn more about these agreements. 

How Does an Out-of-Court Agreement Work? 

A divorce settlement contract is a document that details how a divorcing couple would want to share their property and raise their kids. For the agreement to be legal, the divorcing couple must meet the minimum requirements for divorce. If not, they should consider a separation agreement. 

The contract contains parenting orders and financial orders. Parenting orders will detail how the couple will raise the kids. For instance, which parent will live with the kids? How much will each party contribute towards school fees, food, clothing and the health needs of the children? Other than the parents, who else will have access to the kids? How will the children communicate with their parents?

Financial orders address how the couple will share property. They also contain details regarding the payment of joint loans and the terms of spousal maintenance. 

Formulating the Agreement

Below are some considerations to make when creating the out-of-court agreement. 

Seek Independent Legal Advice

Divorcing couples that have a good relationship have an easy time deciding how they will share property and raise their kids. However, it is paramount to seek independent legal advice before signing the settlement contract. Your lawyer will examine your current situation and advise you on whether the agreement suits your interests. 


As a rule, divorcing parties must be transparent. Do not attempt to lower your income by taking unnecessary loans. Besides, you should not hide or transfer joint property. Such behaviours could lead to a court process, and you could be penalised.

Consider Previous Agreements

Prenuptial and postnuptial agreements will significantly impact the terms of your divorce agreement. For example, you cannot demand extra cash if you had agreed to receive a certain amount of money as spousal support in case of a divorce. The only way to overcome this is by nullifying the agreement on legal grounds or mutual understanding.

Leave Room For Amendments

What would happen if your current situation changed? For instance, take a case where one spouse intends to move out of the country. This would significantly affect the terms of your child custody agreement. Therefore, the contract should have an amendment clause that allows you to change the terms of the agreement.

Contact your divorce lawyer if your ex breaches the terms of the agreement. More often than not, such issues can be settled through a negotiation process. However, you may opt to go to court if he or she continues to disregard the contract.