Your Divorce Agreement: Examples of Elements Commonly Incorporated into a Divorce Term Sheet or Settlement Document

The following examples illustrate typical elements that may appear in a mediated term sheet or settlement agreement. These are not binding terms or templates, but examples of what couples and their professionals often include or discuss during negotiation.  Use these examples to clarify your goals and prepare for legal and financial review.

1. Parenting and Custody Provisions

Example Language:

• The parties share joint legal custody, with both parents participating in all major educational and medical decisions.
• The children reside on a 50/50 shared physical schedule, alternating weekly from Sunday evening to Sunday evening.
• Parents agree to use Our Family Wizard for communication and scheduling.
• Holiday schedule alternates major holidays and school breaks each year.

Why it matters: Parenting terms outline how decision-making, time-sharing, and communication will work post-divorce. They form the foundation of the Parenting Plan, which is often attached or incorporated into the Divorce Agreement.

Notes:

• Definitions of legal and physical custody vary by state — always confirm with counsel.
• In mediation, use this section to list guiding principles (stability, school continuity, flexibility) before your attorney drafts the formal plan.

2. Property Division and Real Estate

Example Language:

• The marital home located at 42 Elm Street, Springfield will be refinanced by Spouse A within 180 days of final judgment.
• If refinancing is not possible, the home will be listed for sale within 30 days, and net proceeds divided 55% to Spouse B / 45% to Spouse A.
• The parties will select a mutually agreed real estate agent and share costs of sale.
• Each party retains their own vehicle and assumes any associated loans.

Why it matters: Property terms address one of the most emotionally and financially complex parts of a settlement. Setting clear deadlines (refinance, sale, buyout) helps avoid future disputes.

Notes:

• Confirm with your financial advisor or CDFA® or My Next Chapter Experts that refinance or buyout terms are feasible.
• Review capital gains exclusions and home equity implications before choosing sale vs. transfer.
• Consider contingencies, such as interest-rate triggers or delayed sale agreements (as discussed by Renee Bauer and Jamie Lima).

3. Financial and Asset Division

Example Language:

Why it matters: This section outlines how marital assets and liabilities are divided — the “balance sheet” of your settlement. It’s typically the backbone of your financial agreement.

Notes:

• A CDFA® or CPA can help evaluate after-tax value differences (e.g., cash vs. retirement funds).
• Business owners should include valuation methodology and equalization payment timing.
• Always specify completion deadlines (who does what, and by when).

4. Support (Alimony or Maintenance)

Example Language:

• Spouse A shall pay Spouse B $1,800/month for 36 months, beginning the first full month after judgment.
• Payments terminate upon remarriage, cohabitation, or after 36 months.
• The parties agree this is non-taxableto the recipient...