Free Marital Settlement Agreement Template

RECITALS AND REPRESENTATIONS

The Parties represent and warrant that: (a) each Party has made a full, fair, and complete disclosure of all assets, debts, income, and financial obligations, whether individual or joint, to the other Party; (b) each Party has had the opportunity to consult with independent legal counsel of their own choosing regarding this Agreement and its implications; (c) each Party understands the rights they are waiving and the obligations they are assuming under this Agreement; (d) this Agreement is entered into voluntarily, free from fraud, duress, coercion, or undue influence; (e) each Party is of sound mind and legal age; and (f) neither Party has transferred, encumbered, concealed, or disposed of any marital property in contemplation of this Agreement except as disclosed. Any material misrepresentation or concealment of assets by either Party shall constitute grounds for the other Party to seek modification or rescission of this Agreement.

SEPARATION AND INDEPENDENT LIVING

The Parties acknowledge that they have been living separate and apart since August 1, 2025 and intend to continue living separate and apart permanently. From the date of separation forward, each Party shall have the right to live independently, free from interference, authority, or control of the other Party. Neither Party shall molest, harass, annoy, or interfere with the other in any manner. Each Party shall be free to conduct their personal, social, and business affairs as they see fit, subject to the obligations set forth in this Agreement. All earnings, income, and property acquired by either Party after the date of separation shall be the separate property of that Party, unless otherwise provided in this Agreement.

DIVISION OF MARITAL PROPERTY

The Parties agree to divide marital property as follows:

Marital Home (estimated value: 650,000.00 USD, mortgage balance: 320,000.00 USD): The marital home shall be listed for sale within sixty (60) days of the execution of this Agreement at a mutually agreed-upon listing price. The net proceeds after payment of the outstanding mortgage, real estate commissions, closing costs, and any necessary repairs shall be divided equally (50/50) between the Parties. Both Parties shall cooperate in the sale process, including signing all necessary documents and making the home available for showings. If the Parties cannot agree on a listing price, they shall obtain two independent appraisals and list the home at the average of the two appraised values.

Vehicle 1: 2022 Toyota RAV4 - Spouse 1

Vehicle 2: 2020 Honda Accord - Spouse 2

Bank Accounts: Joint checking at Chase (ending 4567) - split 50/50.
Spouse 1 savings at BofA (ending 8901) - remains with Spouse 1.

Retirement Accounts: Spouse 1 401(k) at Fidelity ($180,000) - QDRO to split 50/50.
Spouse 2 IRA at Vanguard ($95,000) - remains with Spouse 2. Any division of retirement accounts shall be accomplished through a Qualified Domestic Relations Order (QDRO) or other appropriate court order as required by the plan administrator. The costs of preparing the QDRO shall be shared equally.

Each Party shall retain as their separate property all personal effects, clothing, jewelry, and items of personal use currently in their possession. Any marital property not specifically addressed in this Agreement shall be divided equally between the Parties in accordance with the governing state’s equitable-distribution or community-property statutes. Each Party warrants that they have not transferred, encumbered, or disposed of any marital property since the date of separation except as disclosed herein.

Retirement Plan Division (QDRO). Any division of a qualified retirement plan governed by the Employee Retirement Income Security Act of 1974 (ERISA) — including 401(k), 403(b), profit-sharing, and defined-benefit pension plans — shall be effectuated by a Qualified Domestic Relations Order (QDRO) meeting the requirements of ERISA § 206(d)(3), 29 U.S.C. § 1056(d)(3), and IRC § 414(p). Division of an IRA shall be accomplished by a transfer incident to divorce as described in IRC § 408(d)(6). The cost of drafting any QDRO shall be shared equally unless otherwise specified. The Parties acknowledge the statutory spousal-consent requirements of ERISA § 205.

Tax-Free Transfers Incident to Divorce. All transfers of property between the Parties pursuant to this Agreement are intended to qualify as transfers “incident to divorce” under IRC § 1041, so that no gain or loss shall be recognized on such transfers and the transferee shall take a carryover basis in the transferred property. The Parties shall cooperate to structure all transfers to maintain this tax treatment.

ALLOCATION OF MARITAL DEBTS

The Parties agree to allocate responsibility for marital debts as follows:

Chase Visa (balance $8,500) - Spouse 2 responsible.
Home equity line ($25,000) - paid from home sale proceeds.

Student Loans: Each spouse responsible for their own pre-marital student loans

Each Party shall be solely responsible for any debts incurred individually after the date of separation (August 1, 2025). The Party responsible for a particular debt shall indemnify and hold harmless the other Party from any liability arising from that debt, including any collection actions, late fees, penalties, interest, and attorney's fees. If any creditor attempts to collect a debt from the non-responsible Party, the responsible Party shall immediately assume payment and reimburse the non-responsible Party for any amounts paid, including legal costs incurred in defense. Neither Party shall incur any new joint debt or obligation after the date of this Agreement.

SPOUSAL SUPPORT (ALIMONY)

Michael Thomas Anderson shall pay Jennifer Marie Anderson spousal support (alimony) in the amount of 2,500.00 USD per month for a period of 36 months or until Spouse 1 remarries. Payments shall be due on the first day of each month, beginning on the first day of the month following the entry of the final divorce decree. Payments shall be made by direct deposit, certified check, or electronic funds transfer. This spousal support obligation is modifiable by either Party upon a showing of a substantial change in circumstances, including but not limited to: significant change in either Party's income, involuntary job loss, disability, cohabitation by the receiving spouse with a new partner, or remarriage of the receiving spouse. Spousal support shall automatically terminate upon the earliest of: (a) the death of either Party; (b) remarriage of the receiving spouse; or (c) the expiration of the agreed-upon duration. Federal Tax Treatment: For any divorce or separation instrument executed after December 31, 2018 (or executed on or before that date and modified to expressly adopt the Tax Cuts and Jobs Act treatment), spousal support payments are neither deductible by the payor nor includable in the recipient’s gross income, pursuant to the Tax Cuts and Jobs Act (Pub. L. 115-97), amending IRC §§ 71 and 215. For pre-2019 instruments not so modified, the prior rules under IRC §§ 71, 215 continue to apply. Interstate enforcement of any support order shall be governed by the Uniform Interstate Family Support Act (UIFSA), codified in every U.S. jurisdiction under 42 U.S.C. § 666(f).

ATTORNEY FEES AND COSTS

Each party pays own attorney fees. Each Party acknowledges that they have had the opportunity to retain independent legal counsel and that any decision not to retain counsel was made voluntarily and with full understanding of the implications. Court filing fees, mediation costs, and other costs related to the divorce proceedings shall be shared equally unless otherwise agreed.

DISPUTE RESOLUTION

In the event of any dispute arising out of or relating to this Agreement, the Parties agree to first attempt to resolve the matter through good-faith negotiation. If negotiation is unsuccessful within fourteen (14) days, the Parties shall submit the dispute to mediation with a qualified family law mediator. The cost of mediation shall be shared equally. If mediation does not resolve the dispute, either Party may petition the court for resolution.

MUTUAL RELEASE AND WAIVER

Except as specifically provided in this Agreement, each Party hereby releases, acquits, and forever discharges the other Party from any and all claims, demands, actions, causes of action, debts, obligations, and liabilities of any kind arising out of the marital relationship, whether known or unknown, existing or contingent, including but not limited to claims for: (a) division of property or assets; (b) spousal support or alimony (except as provided herein); (c) contribution or reimbursement; (d) claims under community property or equitable distribution laws; and (e) any other claims arising from the marriage. Each Party further waives any right to claim or inherit from the estate of the other Party, and each Party agrees to execute any documents necessary to effectuate this waiver, including updated wills, beneficiary designations, and transfer documents.

TAX MATTERS

For the tax year in which the divorce is finalized, the Parties shall file their federal and state income tax returns in accordance with applicable law. If the Parties are eligible to file a joint return for the final year, they may do so by mutual written agreement only. Each Party shall be responsible for any tax liability attributable to their own income and shall indemnify the other Party against any tax liability, penalties, or interest arising from the other Party's income or tax positions. Incident-to-Divorce Transfers. The Parties intend that all transfers of property made under this Agreement qualify as transfers incident to divorce under IRC § 1041, resulting in no recognition of gain or loss and carryover basis to the transferee. Alimony Tax Treatment. For any divorce or separation instrument executed after December 31, 2018, any spousal support payments are neither deductible to the payor nor taxable to the recipient, pursuant to the Tax Cuts and Jobs Act (Pub. L. 115-97) amending IRC §§ 71, 215. The Parties shall cooperate in providing necessary financial information and documentation for tax preparation purposes. Any tax refund for a jointly filed return shall be divided in proportion to each Party's individual income tax contribution.

ENTIRE AGREEMENT AND MODIFICATION

This Agreement constitutes the entire understanding between the Parties regarding the settlement of all matters arising from their marriage and supersedes all prior negotiations, representations, understandings, and agreements, whether written or oral. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless made in writing and signed by both Parties. This Agreement may be incorporated into and made part of any final divorce decree entered by the court. Once incorporated, this Agreement shall be enforceable as a court order. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of California. The Parties consent to the exclusive jurisdiction of the family courts of Los Angeles County, California for any action arising out of or relating to this Agreement. Each Party represents that they have read this entire Agreement, understand all of its terms and provisions, and voluntarily agree to be bound by it.

Notary Public Signature

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