In the whirlwind of divorce, it’s easy to focus on the day-to-day battles. But the document that matters most, the one that will follow you long after the dust settles is your marital settlement agreement.
Yes, even more important than the mortgage, the business partnership, or the contract for the family home you poured your heart into restoring. Because unlike those, this one significantly influences your financial circumstances, stability, and peace of mind for years, potentially even the rest of your life.
And yet, most women sign it without fully understanding how it will impact their future.
Not because they’re careless. Because these documents often read like a foreign language written by someone who majored in Latin and minored in legalese. They’re long, dense, and full of boilerplate language that makes your eyes glaze over before you get to the parts that truly matter.
But the parts that matter? They matter a lot.
First: What Is a Marital Settlement Agreement, Really?
Depending on your state, you might also hear it called a divorce decree or settlement agreement. It is the final legal document that outlines:
- How your assets will be divided
- How much maintenance or spousal support you will receive (if any)
- How long support will last
- Who keeps which accounts, properties, and debts
- What happens with health insurance post-divorce
- How retirement plans and investments will be allocated
Parenting agreements are often separate, but usually referenced in the marital settlement agreement to keep everything legally tied together.
Think of the marital settlement agreement as the instruction manual for your financial future. The problem is, most people do their best to read it, but the dense legal terminology makes it hard to grasp the full picture.
The Overwhelm Is Real, But It’s Also Dangerous
I once worked with a client who said, “Beth, I thought I understood the document. I mean… I read it.”
She had.
She just didn’t know which parts mattered and which were background noise.
And the truth is, most people only understand the broad strokes:
- I’m getting X amount of maintenance.
- We’re dividing the marital estate by an agreed-upon percentage (for example, 55/45 or 60/40).
- I keep the house.
- He keeps the restricted stock.
But that is the surface layer.
What most women don’t see are the long-term implications hiding beneath that surface.
Even more concerning: many women sign without knowing whether they’ll actually be okay financially a year from now, five years from now, or twenty years from now.
That happens far more often than you’d think.
The Three Most Important Sections to Understand (Before Anything Else)
Yes, there are dozens of pages.
No, they are not all equally important.
Focus here first:
1. Your Support (Maintenance and/or Child Support)
You must know:
- How much you’ll receive
- How long you’ll receive it
- Under what circumstances it can change or end
This isn’t just a monthly number. It’s a pillar of your future financial stability.
2. Your Health Insurance
This is one of the most commonly overlooked areas—and one of the most critical.
Will you stay on your spouse’s plan for a period of time?
Will you need COBRA?
What happens after COBRA ends?
Who pays?
These answers have major financial consequences.
3. How Your Assets Will Be Divided
This means more than “50/50” or “he gets this, you get that.”
Ideally, your agreement includes a marital balance sheet as an exhibit, listing:
- Each asset
- Its value at divorce
- Who receives what
- The dollar amount assigned to each spouse
This is the foundation for understanding your financial starting point after divorce.
What Most Women Miss: The Impact on Your Future Lifestyle
Here’s where things often fall apart.
Many women sign their marital settlement agreement understanding what they’re receiving…
but not understanding what it means.
I remember a conversation with a woman years ago who said, “I know what’s on paper. I just don’t know what my life is going to look like.”
That’s the piece most people miss.
Because the settlement doesn’t tell you:
- Whether staying in your home is financially feasible
- Whether your charitable giving or travel goals remain achievable
- Whether you may need to return to work
- Whether your assets are projected to support you for your entire life
- Whether your financial plan is sustainable over time
Your marital settlement agreement is a snapshot.
What you need is a projection.
This Is Why Financial Projections Matter, Ideally Before You Sign
A thorough financial projection gives you a clear view of:
- What your post-divorce lifestyle will look like
- Whether your financial resources are sustainable
- How support payments integrate into your long-term plan
- Whether certain assets create hidden tax liabilities
- Whether the home is the best financial choice
- How long-term healthcare factors in
This doesn’t necessarily change the outcome of your divorce…
but it absolutely changes how you feel stepping into your next chapter.
The difference between empowerment and uncertainty often comes down to clarity.
A financial projection can offer valuable insight into your future before you sign something that may be difficult to revise later.
Why “Understanding” Isn’t Enough
Too many women sign their agreement because they understand the words…
but not the implications.
Your marital settlement agreement isn’t just a legal document.
It’s:
- Your budget
- Your map
- Your guardrails
- Your plan
- Your stability
- Your peace
It can set you up to thrive, or leave you feeling blindsided.
This document will have a lasting impact on your financial future.
And you deserve to understand every piece of it.
Take the Next Step
If you want to understand how to read your marital settlement agreement and how to make confident, informed decisions about your financial future, – start by downloading the first chapter of my book, Stronger Than You Know.
It’s written to help women like you gain clarity, confidence, and a sense of control during one of life’s most overwhelming moments.
When you understand the document, you reclaim your power.
This communication is for informational purposes only and should not be construed as legal or financial advice. Financial projections and planning outcomes referenced are hypothetical in nature, based on assumptions, and are not guarantees of future results. Individual results will vary.
Investment advisory services are offered through Keating Financial Advisory Services, a Registered Investment Advisor. Services are provided only pursuant to a written agreement and the firm’s Form ADV Part 2A. Clients may incur separate fees and expenses from custodians, mutual funds, ETFs, or other investment products, which are independent of KFAS advisory fees.
Any reference to past client experiences is not a guarantee of future results and should not be construed as a testimonial or endorsement. All recommendations are made in the best interest of the client based on individual circumstances at the time of service.
