What Happens After a Divorce Settlement Agreement Is Signed?

​Finalizing a divorce settlement agreement marks a significant milestone in the process of legally ending a marriage. It signifies that both parties have agreed on terms regarding assets, debts, custody, and other pertinent issues. Understanding what follows this agreement is crucial for both parties to transition into their new lives effectively and legally.

​So, what happens after a divorce settlement agreement is signed? Let’s find out.

Understanding the Marital Settlement Agreement

A Matrimonial Settlement Agreement (MSA), or marital settlement agreement, refers to a legally binding contract that sets out the terms that the spouses agree upon regarding the dissolution of their marriage. This document typically covers issues such as:

• Division of assets and debts
• Child custody, visitation rights and other co-parenting issues
• Spousal support (alimony)
  
• Child support
• Any other relevant financial or personal arrangements

Not all mediators are attorneys, which means they cannot prepare the MSA. Those mediators that cannot prepare an MSA instead prepare a memorandum of understanding (MOU). The MOU is not a legal document and would not be acceptable to the court.   In such cases, couples would need to take their MOU to separate divorce attorneys to draft the MSA, resulting in additional costs. 

Montclair Divorce Mediation delivers mediation services facilitated by an attorney, meaning that we possess the legal credentials to prepare the MSA directly. This capability saves our clients several thousand dollars as it streamlines the process and circumvents the need for further legal consultation to draft the MSA. This comprehensive and cost-effective approach makes your divorce settlement legally binding and ready for court approval.

Once this agreement is signed by both parties, it is submitted to the court for approval. While signing the agreement is a significant step, it does not mark the official end of the divorce process. The next phases involve court approval, the implementation of the agreement, and making necessary adjustments to your new post-divorce life.

Court Approval: The Next Legal Step

​After the divorce settlement agreement is signed, the next step is to get your case started in the court system. The court has specific requirements, which are listed in the Court Rules. Basically, each side must submit to the court their initial pleadings (several documents) together with the court filing fee. It’s recommended to wait to file the pleadings until the MSA is signed, that way you can represent to the court that the case is settled. In the court’s verbiage, your case is an uncontested divorce. The court will streamline your case.

Filing the Settlement Agreement with the Court 

Once the divorce settlement agreement is signed, and the pleadings were sent to the court, since your case is already settled, the court will set your file for a Final Hearing. On the final hearing date, you will present the MSA to the judge, who will ask a few questions. The judge will accept the MSA and announce that you’re divorced.     The MSA becomes part of the official court record.

Issuance of the Final Divorce Order

Once the settlement is approved by the court, a final divorce Order will be issued by the judge. This Order legally ends the marriage and includes all the terms outlined in the settlement agreement. At this point, both parties are legally required to follow the terms of the agreement. Failing to do so could result in legal consequences, including court enforcement actions.

Implementing the Terms of the Agreement

​After the court has approved the settlement and issued the final decree, the focus shifts to implementing the terms of the agreement. This phase involves taking concrete steps to divide assets, arrange for custody transfers, and establish support payments. Here's what you can expect.

Division of Assets and Debts

One of the first steps is the division of marital property and debts as outlined in the agreement. This may involve selling shared property, transferring titles for vehicles or real estate, and distributing retirement accounts. It’s important to work closely with your attorney or financial advisor to ensure that these transactions are completed properly.

Child Custody and Visitation Arrangements

For divorcing couples with children, the next critical step is implementing the custody and visitation arrangements, outlined in the agreement. This may involve setting up new living arrangements for the children, establishing a visitation  which is referred to as the co-parenting schedule, and coordinating parenting responsibilities. 

Effective co-parenting after a divorce requires open and respectful communication. Many couples benefit from using structured communication methods, such as co-parenting apps, to schedule, update, and manage the responsibilities of raising their children post-divorce. Parents should work together to make this transition as smooth as possible for their children. 

Establishing Support Payments

If your settlement agreement includes provisions for spousal support (alimony) or child support, the next step is to set up these payments. In many cases, support payments are handled through a third-party agency, such as the county probation department, which ensures timely and accurate payments. Be sure to document all payments and follow the guidelines in the agreement to avoid future disputes. Alternatively, the parties may agree to have the support payments be directly between the parties.

Post-Divorce Life: Adjusting to New Realities

Once the terms of the settlement are in place, both ex-spouses must adjust to life after divorce. This period can be emotionally challenging, but it's also an opportunity for personal growth and new beginnings.

• Emotional Adjustment

Divorce, even when amicable, can take an emotional toll on both parties. It’s important to give yourself time to adjust to your new reality and seek support from family, friends, or a therapist if needed. Co-parenting relationships may also require extra attention during this time as both parties adjust to new routines and responsibilities.

• Financial Changes

Post-divorce life often involves significant financial changes. You may need to adapt to a new budget, manage new expenses, or deal with the sale of shared assets.

It's important to revisit your financial plan and ensure that you are prepared for the future. Working with a financial advisor during this transition can be helpful in managing your new financial landscape.

• Legal Follow-Up

In some cases, you may need to revisit certain aspects of your divorce settlement as circumstances change. For example, if one spouse experiences a significant change in income, you may need to request a modification to the support payments, especially for child support. However, with alimony, most MSA's would have a provision that permitted each side to increase their incomes without affecting the alimony amount.

Similarly, custody arrangements may need to be adjusted if either parent relocates or if the child’s needs change. Having a mediator or attorney to consult for these modifications can streamline the process and ensure fairness.

​Common Questions After Signing a Divorce Settlement Agreement

It’s natural to have questions about what happens after your divorce settlement is signed. Here are a few frequently asked questions that often come up:

• Can the agreement be modified?

Yes, as long as both sides mutually agree to the changes. Changes to custody, support payments, or other major terms typically require showing a significant change in circumstances or mutual agreement between the parties.

• What if my ex-spouse doesn’t follow the agreement?

If one party fails to comply with the terms of the settlement, the other can file a motion with the court for enforcement. The court may issue penalties, wage garnishments, or other legal remedies to enforce compliance.

• When does the divorce officially end?

The divorce is officially finalized when the judge signs the final Judgment of Divorce Order, which incorporates the terms of the settlement agreement. This marks the legal end of the marriage.

​Starting a New Chapter

Signing a divorce settlement agreement is a critical milestone, but it's just the beginning of the next phase of your life. After the agreement is signed, it must be approved by the court and implemented, ensuring that both parties follow the terms. 

Montclair Divorce Mediation® strives to make this process as smooth as possible by helping couples reach comprehensive, legally binding agreements that protect their interests and minimize future conflicts. We uniquely position ourselves to streamline and safeguard your post-divorce transition. 

Divorce is never easy, but with a well-structured settlement agreement and the right guidance, you can move forward confidently, knowing that the terms of your divorce have been carefully crafted to meet your needs. We are here to support you every step of the way, ensuring that your journey to a new beginning is as smooth and dignified as possible.