The Ultimate Divorce Settlement Checklist

Going through a divorce can feel complex, but you can navigate it smoothly with the proper preparation. Even in amicable situations, parting spouses must make decisions about property, child arrangements, and finances. A clear divorce settlement checklist can simplify the process and help you approach discussions efficiently. But what should your checklist include? Below, you’ll find everything you need, plus an infographic for easy reference.

Divorce Checklist [INFOGRAPHIC]

Use this visual reference to stay organized and capture all the important details as you work through your divorce settlement agreement.

Divorce Settlement Checklist: Top Considerations

Figuring out what to put in your divorce settlement can be a lot to manage, but a clear plan can make all the difference. That’s why we’ve put together this comprehensive divorce checklist.

It contains key points and thought-provoking questions to help you stay organized and navigate decisions following your divorce. Think of it as your guide to turning life’s complexities into manageable steps as you move toward a fresh start.

Parties’ Information

In this section, you’ll organize the personal details of both parties in the divorce. Accurate information, like full names and contact details, is important for legal documentation. It helps you clearly identify both parties and minimize the risk of misunderstandings. Gathering this information early can set the stage for a smoother settlement process.

Questions to consider:

• What is your full name and contact information?
• What is your spouse’s full name and contact information?
• Is either spouse a member of the United States Armed Forces?
• Does either spouse have an alias or maiden name to consider?
• Is either spouse seeking a name change following the divorce?
• Do both parties agree to the divorce?

Marriage Details

Accurate marriage details help set the legal foundation of your divorce. Be sure to include the date, location, and whether the marriage was legally registered in the relevant state. This information helps clarify the legal grounds for the divorce and is crucial for decisions like alimony and asset division.

The length of the marriage can also affect the settlement outcome, so be sure to note any periods of separation or changes in marital status. If the marriage happened abroad, research how international laws may apply to your situation. Sort through these details to make a more efficient settlement.

Questions to consider:

• When were the parties married?
• In what city, county, and state were the parties married?
• Were the parties married outside of the US?
• Are the parties living separately?
• When did the parties separate?

Spousal Support

In this section, gather information about potential spousal support or “alimony.” The eligibility for and amount of support depends on various personal and legal factors. For example, the length of the marriage can influence the amount a spouse receives. In general, the longer the marriage was, the greater the amount of alimony is likely to be awarded. Other factors like each spouse’s financial situation and state-specific laws can also play a role.

Consider how much support may be appropriate by reviewing both parties’ income, earning capacity, and needs. For example, suppose one spouse was the main breadwinner during the marriage and the other stayed home to handle childcare. This situation may influence the alimony that the stay-at-home spouse receives.

Questions to consider:

• What is the financial situation of both parties?
• Does either party need spousal support due to financial disparities?
• Does either party need spousal support because they can’t support themselves?
• How might the length of the marriage affect the amount and duration of spousal support?
• How can spousal support arrangements help either party maintain the standard of living they had during the marriage?
• Do any existing agreements, like a prenuptial agreement or postnuptial agreement, outline spousal support terms?
• How much will monthly alimony payments be?
• When will alimony payments begin?
• Are alimony payments indefinite, or do they have an end date?
• Is the alimony amount modifiable?

Life Insurance

Life insurance can help protect financial support for an ex-spouse, especially when spousal support is part of the agreement. Consider whether the payer of alimony needs to keep or update an existing life insurance policy. If they don’t already have one, they may need to create one to guarantee payments in case of their unexpected passing.

Check the value of any life insurance policies and confirm that the beneficiaries are current. You may want to include a clause in the divorce settlement agreement to prevent a payer from canceling their policy. Documenting this information helps provide financial security and clarity for everyone.

Questions to consider:

• Will the payer of alimony be required to have a life insurance policy?
• How long must the life insurance policy remain active?
• How much will the life insurance policy be?
• What happens if the payer stops paying their premiums for the policy?
• Can the life insurance policy amount be updated if the payer’s financial situation changes?

Child Custody & Visitation

In this section, gather details about the children involved, like their names, ages, and current living situation. Find out what both parents want for custody and whether they agree on the arrangements or need to discuss it further.

When discussing custody, two phrases will come up: legal and physical custody. Legal custody refers to who can make the child’s education, medical, and legal decisions. This kind of custody is usually split equally between both parents, but one parent may be awarded sole legal custody.

Physical custody refers to the parent with whom the child spends the majority of their time. Even in a 50/50 custody arrangement, the parent who has the child for even slightly more time has “primary custody” for legal purposes. This parent may also receive child support payments to help cover extracurricular activities or other childcare expenses.

When deciding on custody, prioritize the children. The goal is to create a fair plan that meets the children’s emotional and physical needs. The final plan should also respect both parents’ rights and responsibilities. Be sure to consider flexible schedules, holidays, and future plans. Also, the spouses should outline the visitation rights of the non-custodial parent to ensure the child’s happiness and security.

Questions to consider:

• Do the spouses have any children under 18?
• What are the children’s names and birth dates?
• Are the spouses expecting any children?
• Will the spouses have shared legal or physical custody?
• Will one spouse have sole legal and physical custody?
• Will the non-custodial party have visitation rights?
• Who will pay for visitation-related expenses (i.e., transportation)?
• What will weekday and weekend visitation rights look like for the non-custodial party?
• What will holiday visitation rights look like?
• Do the parties have any unique visitation considerations to note?
• Do the parties need a child travel consent form to decide on their children’s travel rules?

Children’s Expenses

Once you determine the children’s custody situation, you can reflect on their expenses and who will pay for what. Determine which party will pay for expenses like child support, medical insurance, and tuition.

As you go through your divorce settlement checklist, consider other necessary costs like extracurricular activities or special needs. Ensure both parents understand their financial obligations, whether shared or split.

Questions to consider:

• Who will pay for the child’s medical insurance policy?
• Who will pay for medical expenses not covered by insurance?
• Who will pay for the child’s tuition-related expenses?
• Does the child have unique expenses for special needs or other factors?
• How will the parties adjust for evolving expenses as the child grows?

Property

During a divorce, property division is a key consideration. This involves determining how to divide both real and personal property. Different factors, such as the property value and the contributions of each party, will influence how property is divided.

State laws can also play a major role. For example, states with equitable distribution laws will have different outcomes for marital property division than states with community property laws.

Real Property

Do a real estate asset inventory for divorce, including the marital home and other jointly owned properties. Note the value and mortgage balance for each property. Decide who will keep possession after divorce.

Questions to consider:

• Do the parties have a marital home?
• What is the address of the marital home?
• Will one party be the new sole owner of the marital home?
• Will the parties keep joint ownership of the marital home?
• Will one party be allowed to live in the marital home?
• Is there a mortgage on the marital home?
• Who will be responsible for paying the mortgage on the marital home?
• Do the parties own any other real property together?
• How will they split the remaining real property?

Personal Property

When dividing personal property, list valuable items like vehicles, furniture, electronics, and other belongings. Proper documentation will keep both parties on the same page and ensure each item goes to the right person.

Consider each party’s needs or attachment to specific items like family heirlooms. If there are any disputes, come up with a plan to resolve them.

If either party received gifts throughout the marriage, the gifts may be able to remain individual property if they weren’t used for the marriage’s benefit.

Questions to consider:

• Which items of joint personal property will each party exclusively own?
• Will the parties sell any jointly owned items?
• How will the parties share the profits from the sale of jointly owned property?

Bank Accounts & Finances

List all the parties’ financial accounts, including checking, savings, and investment accounts. Identify whether these accounts are joint or separate to help with the division. Be sure to also highlight any that may require special attention, such as those in a trust.

Clarifying account ownership and the distribution of funds helps ensure a fair settlement. Consider how splitting finances may impact other aspects of the divorce, like spousal or child support.

Questions to consider:

• Do the parties have joint bank accounts?
• Are the joint bank accounts checking or savings accounts?
• Who will keep possession of these accounts?
• What other funds do the parties have (i.e., from income, bonuses, stock options, etc.)?

Debt Allocation

In most states, the party who brings debts into the marriage is responsible for them. For example, each party is responsible for their own credit card debt from before they were married. Also, a person who took out student loans or incurred healthcare debt before they were married must pay it back.

Debts with both parties’ names or those taken on to benefit the marital property must be divided during the divorce. If both names are on the home loan or mortgage, both parties remain responsible for that debt.

Questions to consider:

• What joint debts do the parties have?
• Will either party be solely responsible for any joint debts?
• Will one party be solely responsible for the debt of the other party?
• What debts will either party be solely responsible for?
• How will the parties allocate existing student loans or medical debt?
• Are there any debts with both parties’ names on them that will remain joint after the divorce?

Pensions & Retirement Accounts

When going through a divorce, you can address the division of retirement accounts, including pensions, 401(k)s, IRAs, or other retirement funds. These assets may represent a significant portion of the marital estate, so it’s important to understand how to divide them fairly.

Retirement account division typically involves a Qualified Domestic Relations Order (QDRO) [1] for accounts like 401(k)s or pensions. This process legally splits the funds between both parties without incurring penalties or taxes. Without proper division, one spouse may lose access to their share of these retirement assets.

Questions to consider:

• What retirement accounts need to be divided (e.g., pensions, 401(k)s, IRAs)?
• How will the transfer of retirement assets impact your long-term financial plans?
• Will either party need to take action, like setting up new accounts or making withdrawals, to complete the division?
• What is the current value of each retirement account?
• How will the current value of each retirement account affect the division of assets?

Income Taxes

Understanding the tax implications of your divorce is a key part of planning for your financial future. Your filing status, deductions, and withholdings may change. Plus, certain aspects of the settlement, like alimony and property division, can have tax consequences. Address these details now to fully prepare for the financial changes ahead.

Questions to consider:

• When will the parties start filing individual tax returns?
• Who will be responsible for any deficiencies on any prior joint tax returns?
• How will property transfers between parties affect taxes?
• Who will handle outstanding audits or disputes with the IRS?
• Is there a need to update tax withholding forms (e.g., Form W-4) after the divorce?

Miscellaneous Provisions

When reviewing your divorce settlement checklist, you may need to include miscellaneous provisions that aren’t in a standard divorce agreement.

For example, you can dictate the division of a business. If one spouse brought a business into the marriage and earned passive income, all profits may be treated as theirs. However, if the spouse started a business during the marriage and actively participated in it, the profits may be treated as marital income.

You may also want to discuss the waiver of spousal or child support payments through an applicable state Central Depository Payment Program. If both parties consent to this waiver, the payer can make mandated payments directly to their ex-spouse. This means they won’t have to go through a centralized system.

Questions to consider:

• Did either party operate a business during the marriage?
• Did the party acquire the business before or after marriage?
• Did the party use marital funds to grow the business?
• How will the business be divided post-divorce?
• Will the payer of alimony make direct payments to the other party?

Final Things to Consider in a Divorce Settlement

Once you sort through the above details and learn what to expect in a divorce settlement, you can fill out a divorce agreement template. Ensure that each party has the chance to independently review it with their attorneys’ counsel. When both parties understand and accept all the terms, they can sign it before a notary public.

Upon signing, you can submit the agreement to the court as part of the divorce proceedings. If the agreement is equitable and doesn’t put either party in a poor financial situation, the court will likely approve it.

As you proceed with the divorce, you can consider updating other legal and end-of-life documents to reflect your changing circumstances. For example, you may want to remove your ex-spouse as the decision-maker in documents like a power of attorney or as the beneficiary in a last will. Updating these documents ensures your preferences are clear and legally binding as you carry on.

How Legal Templates Can Help With Divorce Planning

At Legal Templates, we provide more than just forms. We offer the tools to prepare for your divorce with confidence. Our document builder makes creating a divorce settlement agreement simple. You can use it to outline property division, spousal support, custody arrangements, and more.

Beyond settlement agreements, we also help you prepare other important documents you may need during a divorce. We’ve designed these documents to address the unique challenges of your situation, from co-parenting to managing financial arrangements.

With Legal Templates, you don’t just check boxes—you build a framework for the next chapter of your life. Our platform empowers you to create polished, professional documents efficiently, so you can focus on moving forward.