Divorcing Without Assets or Debts? You’re Forgetting Something Crucial!
When going through a divorce, many people assume that if there are no assets to divide, no debts to settle, and no spousal support to pay, then a settlement agreement isn’t necessary. But that’s a big misconception. Whether your marriage lasted a few years or decades, and regardless of whether you’re dividing property or providing support, every divorce requires a settlement agreement. This essential step ensures that your divorce is clear, enforceable, and complete.
As Tim Blankenship from Divorce661 points out, even in uncontested or default divorces where couples keep their own belongings and owe no spousal support, a settlement agreement is still required. Here’s why you can’t skip this critical document.
Why Every Divorce Needs a Settlement Agreement
It might seem unnecessary to draft a settlement agreement when both parties agree to keep their own property and waive spousal support. However, a settlement agreement does more than divide assets or assign debts—it formally records the terms of your divorce. This includes:
- Property orders: Even if you’re not dividing anything, the agreement must state that each party is keeping their own property.
- Spousal support orders: If there is no spousal support, the agreement must explicitly say so.
- Additional language for longer marriages: For marriages lasting over 10 years, certain extra provisions are required to comply with legal standards.
Without this document, the court has no official record of your divorce terms, which can lead to confusion or legal complications down the road.
Common Misconceptions About Settlement Agreements
One of the most common misunderstandings is that a settlement agreement is only necessary when there are assets or spousal support to divide. This could not be further from the truth. Tim shares an example from a recent consultation where one party assumed no agreement was needed because they weren’t dividing anything or paying support. When asked, they admitted, “No, we don’t have a settlement agreement.”
Tim’s response was clear:
“Yes, you do. You still need a settlement agreement to state exactly what you just said.”
This highlights how important it is to have a formal, written agreement that clearly outlines the terms—even if those terms are simply that each spouse keeps their own stuff and no support will be exchanged.
The Role of Settlement Agreements in Default and Uncontested Divorces
Default and uncontested divorces are often viewed as simpler and quicker paths to ending a marriage, but they still require documentation. A settlement agreement serves as the foundation for these types of cases by:
- Providing the court with clear terms to approve
- Ensuring both parties understand and agree to the divorce terms
- Preventing future disputes by having a legally binding record
Even if there’s nothing to divide or support to pay, the agreement acts as the official proof that the divorce terms have been settled and agreed upon by both parties.
Additional Considerations for Longer Marriages
For marriages lasting longer than 10 years, the law requires additional language in the settlement agreement to address potential spousal support and other considerations. This is to protect both parties and ensure the agreement meets legal standards.
Failing to include these provisions can cause delays or complications in the divorce process, so it’s important to work with a knowledgeable professional to draft your agreement correctly.
Takeaway: Don’t Skip the Settlement Agreement
No matter the circumstances of your divorce, a settlement agreement is crucial. It doesn’t matter if you’re not dividing assets, not paying spousal support, or simply going your separate ways amicably—this document is what makes your divorce official and enforceable.
Here’s a quick checklist of what your settlement agreement should include, even if your divorce is straightforward:
- A clear statement that each party is keeping their own property
- A spousal support provision stating whether support will be paid or waived
- Any required additional language if your marriage lasted more than 10 years
- Signatures from both parties to confirm agreement and consent
By ensuring these elements are in place, you protect yourself from future legal headaches and finalize your divorce with confidence.
Need Help With Your Divorce Agreement?
If you’re going through a divorce in California and want to make sure your settlement agreement covers all the necessary bases, consider reaching out for professional guidance. A well-crafted agreement saves time, reduces stress, and helps you move forward with peace of mind.
For a full-service divorce solution tailored to amicable couples, visit Divorce661.com or schedule a free phone consultation to discuss your unique situation.
Remember: no matter how simple your divorce may seem, don’t overlook the settlement agreement. It’s a crucial step to ensure your divorce is legally sound and final.
