Divorce Settlement Agreement

PROPOSED MARITAL SETTLEMENT AGREEMENT

IN THE CIRCUIT COURT OF [________________________________] COUNTY, ALABAMA

Case No.: [________________________________]

IMPORTANT USE GATES

1. This Agreement records proposed terms for submission to the court. The marriage ends only by court judgment.
2. Custody, parenting time, child support, and any change to an existing order operate only as provided in a court order.
3. The court independently reviews child support under Rule 32 and custody under the child's best interests and applicable safety law.
4. This Agreement does not bind a mortgage lender, creditor, taxing authority, retirement plan, insurer, title holder, or other third party that is not legally bound by the final judgment or a separate instrument.
5. A deed, vehicle title, account transfer, qualified domestic relations order or other plan-specific order, beneficiary designation, tax form, or other implementing document may be required in addition to this Agreement.
6. Any domestic violence, stalking, harassment, coercion, hidden assets, unsafe disclosure, immigration concern, bankruptcy, business ownership, trust interest, military benefit, public retirement plan, or out-of-state property requires individualized review before signing.

1. PARTIES, MARRIAGE, AND CASE

This Proposed Marital Settlement Agreement ("Agreement") is made on [__/__/____] by:

Spouse A: [________________________________]

Address for service: [________________________________]

Spouse B: [________________________________]

Address for service: [________________________________]

1.1 Marriage and Separation

1.2 Children

☐ The parties have no minor children together and no child expected by either party is alleged to be a child of the marriage.

☐ The parties have the following minor child(ren):

1.3 Other Proceedings and Orders

Identify every pending or existing protection, custody, support, parentage, juvenile, bankruptcy, foreclosure, tax, criminal, or other proceeding that may affect these terms:

[________________________________]

2. DISCLOSURE AND VALUATION

Each spouse states that the schedules attached to this Agreement disclose that spouse's known assets, debts, income, expenses, and material claims, subject to the following stated limitations:

[________________________________]

2.1 Required Schedules

☐ Schedule A — real property and secured debt

☐ Schedule B — bank, investment, cash, and digital-asset accounts

☐ Schedule C — retirement, pension, deferred-compensation, and employment benefits

☐ Schedule D — businesses, professional practices, intellectual property, and income-producing assets

☐ Schedule E — vehicles and tangible personal property

☐ Schedule F — debts, tax liabilities, judgments, and contingent liabilities

☐ Schedule G — income, benefits, recurring expenses, and insurance

2.2 Valuation

Each spouse has had the opportunity to obtain independent appraisal, tracing, tax, and financial advice. Any waiver of further valuation is asset-specific and stated here:

[________________________________]

2.3 Undisclosed or Mistaken Property

This Agreement does not intentionally dispose of an asset or debt omitted from the schedules. Counsel must determine how the final judgment should reserve, allocate, or address later-discovered property, fraud, mistake, or nondisclosure under applicable law.

3. PROPERTY CLASSIFICATION AND DIVISION

3.1 Alabama Framework

Under Ala. Code § 30-2-51(b), the marital estate is subject to equitable division and distribution. Equitable does not necessarily mean equal.

Under § 30-2-51(a), property acquired before marriage or by inheritance or gift generally may not be considered under that subsection unless the court finds that the property, or income produced by it, was used regularly for the parties' common benefit during the marriage.

The parties identify classification positions for court review; labels in this Agreement do not bind the court or an unjoined third party.

3.2 Real Property

For the marital residence at [________________________________]:

☐ Award to Spouse A, subject to the transfer and financing terms below.

☐ Award to Spouse B, subject to the transfer and financing terms below.

☐ List for sale by [__/__/____] with [________________________________] as broker.

☐ Other: [________________________________]

Possession date: [__/__/____]

Deed deadline: [__/__/____]

Refinance or assumption target date: [__/__/____]

Expenses pending transfer or sale: [________________________________]

Sale-price reductions, repairs, offers, closing costs, and net proceeds: [________________________________]

Allocation of a mortgage debt between spouses does not release either spouse from liability to the lender. State the remedy requested if refinance, assumption, sale, or release does not occur:

[________________________________]

3.3 Accounts and Personal Property

3.4 Equalization Payment

☐ No equalization payment is proposed.

☐ Spouse [____] will pay Spouse [____] $[________________________________] by [__/__/____], subject to the security, interest, tax-characterization, and enforcement terms approved by the court:

[________________________________]

4. RETIREMENT AND EMPLOYMENT BENEFITS

Under Ala. Code § 30-2-51(b), the marital estate includes retirement interests acquired, received, accumulated, or earned during the marriage, whether vested or unvested, unless the parties agree otherwise or federal or state law provides otherwise.

Unless the parties agree otherwise, the total retirement benefits payable to the noncovered spouse may not exceed 50% of the retirement benefits the court may consider. A spouse claiming that an interest is excluded bears the burden stated in § 30-2-51(b)(3).

4.1 Implementation

1. Obtain the current plan document, model order, benefit statement, and administrator requirements before finalizing division terms.
2. Identify valuation or division dates, survivor benefits, loans, gains and losses, cost-of-living adjustments, fees, and tax treatment.
3. Use a separate plan-specific order when required. Calling a document a "QDRO" does not make it effective for every public, military, church, governmental, nonqualified, or individual retirement arrangement.
4. No spouse will request or take a loan, withdrawal, beneficiary change, or other action inconsistent with the court-approved award after entry of the judgment.

Drafting responsibility, submission deadline, and fee allocation: [________________________________]

5. DEBTS AND TAX LIABILITIES

5.1 Third-Party Rights

Allocation of a debt between spouses does not alter a creditor's contract rights. The spouse assigned a debt will pay it as agreed and will reimburse the other spouse for losses caused by a failure to pay, to the extent ordered by the court and permitted by law.

5.2 Joint Tax Returns and Liabilities

For each year listed below, state the filing position, preparer, document-exchange deadline, payment allocation, refund allocation, audit control, and responsibility for additional tax:

No spouse is required by this Agreement to sign a return that the spouse or the spouse's tax adviser believes is inaccurate or unlawful. Federal and Alabama tax consequences require current tax advice.

6. ALIMONY

6.1 Interim Alimony

Ala. Code § 30-2-56 governs interim alimony while a divorce, legal-separation, or annulment action is pending. An interim-alimony order generally terminates upon entry of the final judgment, subject to the statute's appeal and arrearage provisions.

☐ No interim-alimony order exists.

☐ Interim-alimony order dated [__/__/____] requires: [________________________________]

Unpaid or overpaid interim amount claimed: [________________________________]

6.2 Final Rehabilitative or Periodic Alimony

Under Ala. Code § 30-2-57, the court makes the findings required by subsection (a) and gives rehabilitative alimony the priority stated in subsection (b). Rehabilitative alimony generally may not exceed five years absent extraordinary circumstances. Periodic-alimony duration is subject to § 30-2-57(g), including its rule for a marriage lasting 20 years or longer and the court's equitable-deviation authority.

Select one proposal for court review:

☐ Mutual waiver. Each spouse asks the court to deny rehabilitative and periodic alimony and not reserve jurisdiction, after counsel explains the consequence of § 30-2-57(c).

☐ Reservation requested. The parties ask the court to reserve jurisdiction under § 30-2-57(c) because: [________________________________]

☐ Rehabilitative alimony proposed. Spouse [____] pays Spouse [____] $[________________________________] per month from [__/__/____] through [__/__/____] for the following rehabilitation plan: [________________________________]

☐ Periodic alimony proposed. Spouse [____] pays Spouse [____] $[________________________________] per month beginning [__/__/____], subject to the duration, findings, modification, and termination provisions approved by the court.

6.3 Findings and Factors Worksheet

6.4 Modification and Termination

Under § 30-2-57(h), rehabilitative or periodic alimony may be modified on application and a showing of material change in circumstances.

Under § 30-2-57(i), rehabilitative or periodic alimony terminates on the death of either spouse or as provided in § 30-2-55.

Section 30-2-55 requires a petition and proof before the court modifies a decree to terminate periodic alimony because the recipient remarried or is cohabiting as defined in that section. This Agreement does not treat remarriage or alleged cohabitation as a self-executing private forfeiture.

7. CHILD CUSTODY AND PARENTING TERMS

Complete this section only if the parties have minor children together.

7.1 Separate Parenting Plan

☐ A proposed parenting plan is attached.

☐ A proposed child-custody agreement is attached.

☐ An existing custody order remains in effect except as expressly modified by a later court order.

The plan must address the matters required by Ala. Code § 30-3-153 when joint custody is proposed. Joint physical custody does not necessarily mean equal time. See §§ 30-3-150 and 30-3-151.

7.2 Requested Custody

☐ Joint legal custody

☐ Sole legal custody to Spouse [____]

☐ Joint physical custody

☐ Sole physical custody to Spouse [____], with parenting time as stated in the plan

7.3 Safety Screen

Under Ala. Code § 30-3-131, a court finding of domestic or family violence raises a rebuttable presumption against placing the child in sole custody, joint legal custody, or joint physical custody with the perpetrator. The parties disclose for court review:

☐ No known fact requiring a domestic-violence or abuse safety plan.

☐ Protection order, abuse allegation, criminal case, or safety concern: [________________________________]

☐ Requested protected address, supervised contact, exchange safeguard, or communication restriction: [________________________________]

7.4 UCCJEA

Alabama counsel must confirm initial, continuing, modification, or temporary emergency jurisdiction under Ala. Code §§ 30-3B-201 to 30-3B-204 and complete all required child-custody history disclosures.

7.5 Relocation

The parties will comply with the Alabama Parent-Child Relationship Protection Act, Ala. Code §§ 30-3-160 to 30-3-169.10. A private notice method or distance definition in this Agreement does not replace the Act's certified-mail, content, timing, objection, safety, and court-process requirements.

8. CHILD SUPPORT AND CHILD-RELATED EXPENSES

8.1 Rule 32 Forms and Review

☐ Form CS-41 for each parent is completed.

☐ Form CS-42 is completed.

☐ Form CS-42-S is completed because the court orders each parent to have physical custody 50% or approximately 50% of the time.

☐ Form CS-43 is completed, including any deviation reason and the guideline amount.

Guideline amount: $[________________________________] per month

Proposed amount: $[________________________________] per month, payable by Spouse [____]

Deviation, if any, and reason: [________________________________]

Rule 32(A)(2) requires court review of a support stipulation. The parents cannot privately waive the child's support.

8.2 No Automatic Modification

Support does not change automatically because a guideline, income, schedule, or expense changes. Rule 32(A)(3) requires a modification petition and proof of a substantial and continuing material change. A difference of more than 10% creates a rebuttable presumption subject to the rule's prior-deviation exception; it is not an automatic adjustment.

8.3 Health Care, Childcare, and Other Expenses

These proposals remain subject to the current Rule 32 calculation and the court's order.

9. INSURANCE, BENEFICIARIES, AND ESTATE-PLAN REVIEW

9.1 Insurance to Secure an Obligation

☐ No insurance-security obligation is proposed.

☐ Spouse [____] will maintain [type] coverage of $[________________________________] through [__/__/____], if available on the stated terms, with the following ownership, beneficiary, proof, replacement, and remedy provisions:

[________________________________]

Counsel must coordinate any insurance-security term with insurability, policy ownership, beneficiary rights, support duration, and the final judgment.

9.2 Existing Beneficiary Designations and Estate Documents

Each spouse will review wills, trusts, powers of attorney, payable-on-death designations, retirement beneficiaries, insurance beneficiaries, transfer-on-death registrations, and health directives with separate counsel. This Agreement does not itself change a third party's records unless applicable law and the controlling instrument give it that effect.

10. IMPLEMENTATION AND TRANSFER DOCUMENTS

Until the court enters judgment, the parties will preserve property, records, and account access as required by existing orders and applicable law. This clause does not authorize either spouse to violate an account agreement, court order, fiduciary duty, or third-party right.

11. COURT APPROVAL, ENFORCEMENT, AND CHANGES

1. Court review. The parties request that the court review this Agreement and incorporate only the approved terms into the final judgment.
2. No private decree. Signing does not grant a divorce, establish contempt, modify an existing order, or create court-ordered support or custody.
3. Existing orders. Every existing interim, protection, custody, and support order remains in effect until changed by the court.
4. Enforcement. After entry of judgment, a party may request remedies the court is authorized to grant. This Agreement creates no automatic contempt finding, fixed cure period, fee award, interest rate, injunction, or sanction.
5. No liability cap or force majeure. No marital-asset cap, force-majeure excuse, or private damages limit restricts support, custody, disclosure, transfer, or other duties imposed by the court or governing law.
6. No private arbitration of court-controlled issues. Custody, parenting time, child support, alimony modification, contempt, and entry or modification of the divorce judgment remain for a court with jurisdiction. Any proposed alternative process concerning a severable property issue requires separate Alabama counsel review and may not delay emergency or safety relief.
7. Changes. A later agreement does not modify the judgment unless the court approves the change when approval is required.
8. Third parties. The spouses' allocation does not bind an unjoined creditor, plan, insurer, lender, taxing authority, or title holder.
9. Sensitive information. Filing this Agreement may make its terms part of a court record. Remove protected identifiers and use required confidential forms or sealing procedures.

12. VOLUNTARY EXECUTION AND COUNSEL

Each spouse states, subject to the disclosures and reservations written in this Agreement, that the spouse:

1. has read the Agreement and attached schedules;
2. has had adequate time to review them;
3. has had the opportunity to obtain independent Alabama legal, tax, valuation, and financial advice;
4. is signing voluntarily and not because of undisclosed coercion or threat;
5. understands that the court may accept, reject, or revise the proposed terms; and
6. understands that implementation may require separate documents and third-party acceptance.

Spouse A represented by: [________________________________] / ☐ Self-represented

Spouse B represented by: [________________________________] / ☐ Self-represented

13. SIGNATURES

Spouse A

Signature: [________________________________]

Printed name: [________________________________]

Date: [__/__/____]

Spouse B

Signature: [________________________________]

Printed name: [________________________________]

Date: [__/__/____]

Counsel for Spouse A, if any

Signature: [________________________________]

Name and Alabama Bar No.: [________________________________]

Date: [__/__/____]

Counsel for Spouse B, if any

Signature: [________________________________]

Name and Alabama Bar No.: [________________________________]

Date: [__/__/____]

Optional Acknowledgment or Verification

Use only the acknowledgment, oath, affidavit, or verification required or selected by Alabama counsel and the filing court:

[________________________________]

SOURCES AND REFERENCES

• Ala. Code § 30-2-51 — equitable property division and retirement benefits
• Ala. Code § 30-2-55 — periodic-alimony termination after petition and proof of remarriage or cohabitation
• Ala. Code § 30-2-56 — interim alimony and litigation expenses
• Ala. Code § 30-2-57 — rehabilitative and periodic alimony
• Ala. Code §§ 30-3-130 to 30-3-157 — custody, domestic-violence, and joint-custody provisions
• Ala. Code §§ 30-3-160 to 30-3-169.10 — relocation provisions
• Ala. Code §§ 30-3B-201 to 30-3B-204 — UCCJEA jurisdiction
• Rule 32, Alabama Rules of Judicial Administration — child-support guidelines and forms