What to Consider Before Signing a Divorce Agreement

What to Consider Before Signing a Divorce Agreement: A Thoughtful Guide for a New Chapter

Signing a divorce agreement is more than just putting your name on a piece of paper—it is the legal and emotional foundation of your next chapter. Whether your divorce is amicable or contested, the decisions outlined in your agreement will impact your finances, family dynamics, and future wellbeing for years to come.

Before you sign on the dotted line, here is what you need to carefully consider to protect yourself, your children, and your peace of mind.

1. Understand What the Divorce Agreement Covers

A divorce agreement (also known as a marital settlement agreement) is a legally binding document that outlines the terms of your separation. It typically includes:

• Division of assets and debts
• Child custody and parenting time
• Child support and/or spousal support (alimony)
• Retirement accounts, pensions, and insurance
• Tax considerations
• Dispute resolution processes

Every clause should be clear, fair, and tailored to your unique circumstances—not just a copy-paste template.

2. Get Legal Advice (Even If Things Are Friendly)

Even in an amicable divorce, you should have an attorney review the agreement before signing. One missed detail can have serious consequences, especially around financial assets or child custody arrangements.

Why this matters:

• Laws vary by state, and what’s “standard” in one place might not be enforceable in another.
• A lawyer can spot vague or one-sided language that may hurt you later.
• You may be waiving rights you didn’t know you had—permanently.

3. Think Long-Term About Finances

Divorce is not just about today—it is about your financial future. Consider the full picture, not just immediate needs:

• Are you giving up long-term assets (like retirement savings) in exchange for short-term cash?
• Is the division of debts fair and clearly assigned?
• Will you have access to health insurance, or need to pay for a new policy?

Also think about how taxes will be affected, especially with regard to:

• Child tax credits
• Who can claim children as dependents
• Alimony (which is no longer tax-deductible in a federal tax return for the payer in post-2019 divorces)

4. Double-Check Parenting Plans

If you have children, the parenting section of your agreement will have a huge impact on everyone’s quality of life.

Make sure the agreement addresses:

• Legal custody (decision-making rights)
• Physical custody (where the child lives and when)
• Holidays, vacations, and special events
• How to handle disputes or future changes

Life changes—kids grow up, jobs move, and people remarry. Build in flexibility where possible and include a method for renegotiation or mediation if needed.

5. Be Clear on Support Terms

Child support and alimony should be clearly stated with specific amounts, payment dates, and end dates (if applicable). Also consider:

• What happens if the paying party loses a job?
• How will support be adjusted for inflation or changing needs?
• Will support be paid through a state agency or directly?

If you are agreeing to no spousal support, understand that this decision is often permanent.

6. Review Insurance and Beneficiaries

Divorce does not automatically update your beneficiaries. Before or right after signing:

• Change life insurance policies (unless court-ordered argued upon to maintain one)
• Update wills, trusts, and powers of attorney
• Adjust health, auto, or home insurance as needed

This is often overlooked—and it can cause major issues later on.

7. Don’t Sign Under Pressure

If you feel rushed, uncertain, or emotionally overwhelmed, pause. Divorce is a high-stress situation, and it is okay to take your time.

Red flags to watch for:

• You don’t understand the legal language
• You feel bullied into agreeing
• You’re signing “just to get it over with”

You only get one chance to get this agreement right. It is much harder and oftentimes impossible—and certainly more expensive—to fix mistakes later.

Your Future Deserves Thoughtful Planning

Signing a divorce agreement marks both an ending and a beginning. While it is natural to want to move on quickly, taking the time to fully understand and negotiate fair terms is one of the best gifts you can give your future self.

Whether you are co-parenting, rebuilding your finances, or reclaiming your independence, a well-crafted agreement lays the groundwork for a smoother transition.

You do not have to do it alone—surround yourself with the right legal, financial, and emotional support.

Contact us to schedule a consultation. Call (908) 645-1000 or fill out our contact form.