Marital Settlement Agreement

A marital settlement agreement is a written contract between two spouses who are getting divorced. It spells out how they will divide their property, who pays which debts, whether either spouse will receive spousal maintenance (alimony), and how they will handle custody and support if they have children together.

In Minnesota, the court must approve the terms of a marital settlement agreement before the divorce is final ( Minn. Stat. § 518.13 ). If both spouses agree on all issues and have no minor children, the court can approve the agreement without a hearing based on a written stipulation alone ( § 518.13, subd. 5 ).

When to Use This Template

• Uncontested divorce: You and your spouse agree on how to divide property, handle debts, and address maintenance and custody
• Simplified divorce: You have no minor children, limited property, and want to avoid a court hearing
• Mediated divorce: You have reached agreement through mediation and need to put the terms in writing
• Modifying a prior agreement: You and your former spouse agree to change terms of an existing agreement (modifications require court approval)
• Legal separation: You are filing for legal separation instead of divorce and need to divide rights and responsibilities

How to Use This Template

1. Download the template in your preferred format (PDF or DOCX).
2. Fill in both spouses’ full legal names, addresses, and the county where the divorce will be filed.
3. List all marital property. Include real estate, vehicles, bank accounts, investments, retirement accounts, household items, and any other assets. For each item, write who gets it and its approximate value. Minnesota law requires a “just and equitable” division of marital property ( Minn. Stat. § 518.58 ).
4. List all debts and obligations. Include mortgages, car loans, credit cards, student loans, medical bills, and any other debts. For each debt, write who is responsible for paying it.
5. Address spousal maintenance. Decide whether either spouse will pay maintenance, the monthly amount, and how long payments last. You may also agree to waive maintenance entirely.
6. Complete the custody and support sections (if you have minor children). Include legal custody, physical custody, a parenting time schedule, and child support. Consider using our Parenting Plan template for the custody and parenting time sections.
7. Address insurance, retirement, and tax matters. See the Key Provisions section below for what to include.
8. Both spouses sign the agreement before a notary public.
9. File the signed agreement with the court as part of your divorce petition or stipulation.

Key Provisions Explained

Property Division

Minnesota is an equitable distribution state, not a community property state. This means the court divides marital property in a way that is “just and equitable,” which does not always mean 50/50 ( Minn. Stat. § 518.58 ). The agreement should list every significant asset, state whether it is marital or nonmarital property, assign it to one spouse, and state its value.

Marital property includes almost everything acquired during the marriage, regardless of whose name is on the title. Nonmarital property includes assets owned before the marriage, gifts received by one spouse, and inheritances, as long as they were kept separate. If nonmarital property has been mixed with marital property (for example, an inheritance deposited into a joint bank account), it may have become marital property. This is called commingling, and it is one of the most common disputes in property division.

The court considers several factors when deciding whether a division is just and equitable, including the length of the marriage, each spouse’s age and health, each spouse’s income and earning capacity, and each spouse’s contributions to the marital estate (including homemaking and child-rearing).

Debt Allocation

List every debt and assign responsibility. For each debt, include the creditor’s name, the account number, the approximate balance, and which spouse will pay it.

Keep in mind that your agreement binds you and your spouse, but it does not bind creditors. If your spouse is supposed to pay a joint credit card but stops paying, the creditor can still come after you. Address this risk by including a hold-harmless (indemnification) provision — a clause where each spouse agrees to protect the other from any debts they agreed to pay. If the responsible spouse fails to pay, the other spouse can go back to court to enforce the agreement.

Common debts to address include the mortgage, home equity loans, car loans, credit card balances, student loans, medical bills, personal loans, and any money owed to family members.

Spousal Maintenance

Spousal maintenance (alimony) is not automatic in Minnesota. The court considers factors including the length of the marriage, each spouse’s financial resources, earning capacity, age, health, and contributions to the marriage ( Minn. Stat. § 518.552 ). Your agreement should state:

• Whether maintenance will be paid
• The monthly amount
• The start and end dates
• Whether maintenance is modifiable or non-modifiable (a permanent waiver cannot be changed later)
• Events that end maintenance (remarriage, cohabitation, death)

Custody and Parenting Time

If you have minor children, your agreement must address legal custody (who makes major decisions about the child), physical custody (where the child lives), a parenting time schedule, and child support. Minnesota courts must approve custody arrangements based on the child’s best interests ( Minn. Stat. § 518.17 ).

For detailed custody and parenting time terms, use our Parenting Plan template and attach it to this agreement.

Child Support

Child support in Minnesota is calculated using the state guidelines under Minn. Stat. § 518A.34 . The calculation considers both parents’ gross incomes, the number of children, parenting time, and costs for child care, health insurance, and medical expenses. You may agree to an amount, but the court must find it meets the child’s needs and is consistent with the guidelines.

Insurance

Your agreement should cover:

• Health insurance: Who will carry health insurance for minor children, and what happens to the other spouse’s coverage after divorce (COBRA allows continued coverage for up to 36 months, but you must pay the full premium)
• Life insurance: Whether either spouse must maintain a life insurance policy to secure maintenance or child support obligations
• Auto and property insurance: Who is responsible for insuring shared property until it is transferred

Retirement Accounts and QDROs

Retirement accounts (401(k), pension, IRA) earned during the marriage are marital property. Dividing these accounts requires a Qualified Domestic Relations Order (QDRO) — a separate court order that directs the plan administrator to split the account. Your agreement should:

• Identify each retirement account and its approximate value
• State how each account will be divided (percentage or dollar amount)
• Specify that a QDRO will be prepared and filed
• Assign responsibility for the cost of preparing the QDRO

Do not withdraw funds from a retirement account to divide them. Early withdrawals trigger taxes and penalties. A QDRO allows a tax-free transfer between spouses.

Real Property

If you own a home or other real estate, your agreement should state:

• Who keeps the property (or whether it will be sold)
• If one spouse keeps it, when the other spouse’s name will be removed from the mortgage and deed
• If sold, how the proceeds will be divided
• Who pays the mortgage, taxes, insurance, and maintenance until the transfer or sale is complete
• A deadline for refinancing or selling

The spouse giving up the property should sign a quit claim deed transferring their interest.

Tax Matters

Address these tax issues in your agreement:

• Who claims each child as a dependent for federal and state income tax purposes
• How you will file taxes for the year of divorce (joint or separate)
• Who is responsible for any tax liability from joint returns filed during the marriage
• Whether maintenance payments are included in the recipient’s income (under current federal law, maintenance is not deductible for the payer and not taxable to the recipient for agreements executed after December 31, 2018)

Minnesota-Specific Requirements

Common Mistakes to Avoid

1. Not listing all assets and debts. If you leave something out, it may not be covered by the agreement. Make a complete inventory of everything you own and owe — including digital assets, frequent flyer miles, and tax refunds.
2. Ignoring retirement accounts. A 401(k) or pension may be the most valuable marital asset after the home. Failing to divide it properly or forgetting to file a QDRO can cost tens of thousands of dollars.
3. Forgetting about the mortgage. Agreeing that one spouse “keeps the house” does not remove the other spouse from the mortgage. The agreement must include a refinancing deadline, or the non-keeping spouse remains liable for the loan.
4. Waiving maintenance without understanding the consequences. If you permanently waive spousal maintenance, you cannot ask for it later, even if your circumstances change dramatically. Consider whether a short-term or modifiable maintenance provision is more appropriate.
5. Not addressing health insurance. Divorce ends spousal health insurance coverage. Know your COBRA options and costs before signing.
6. Using vague language. Terms like “we will split things fairly” are unenforceable. Be specific: name the asset, state the value, and say who gets it.
7. Signing under pressure. If your spouse is pushing you to sign quickly, that is a warning sign. Take time to review the agreement carefully and consult an attorney if needed.
8. Not accounting for taxes. Transferring property can have tax consequences. The spouse who keeps the house will owe capital gains tax when they eventually sell it. Factor taxes into the overall division.

After the Court Approves Your Agreement

Once the court approves your marital settlement agreement and enters the divorce decree, take these steps:

1. Get certified copies of the decree. You will need certified copies to transfer property, change account names, and update records. Request at least three certified copies from the court.
2. Transfer real property. If one spouse is keeping the home, the other spouse should sign a quit claim deed. Record the deed with the county recorder’s office. The keeping spouse should refinance the mortgage into their name alone within the deadline stated in the agreement.
3. Divide retirement accounts. Have a QDRO prepared and filed with the court, then submit it to the plan administrator. Do not wait — some plans have processing delays of several months.
4. Update beneficiary designations. Change the beneficiaries on life insurance policies, retirement accounts, bank accounts, and any payable-on-death or transfer-on-death designations. Divorce does not automatically change these.
5. Close or separate joint accounts. Close joint bank accounts, joint credit cards, and any other joint financial accounts. Open new individual accounts as needed.
6. Update your estate plan. Revise your will, health care directive, and power of attorney. Under Minn. Stat. § 524.2-804 , divorce automatically revokes provisions in your will that benefit your former spouse, but it is best practice to execute new documents.
7. Update your name (if applicable). If you are resuming a former name, the divorce decree can include a name change provision. Use the decree to update your driver’s license, Social Security card, and other records.

Related Documents

After your divorce is final, update your will, power of attorney, health care directive, and beneficiary designations on insurance policies and retirement accounts. Under Minn. Stat. § 524.2-804 , divorce automatically revokes provisions in favor of a former spouse in your will, but it does not affect beneficiary designations on insurance policies or retirement accounts.

Related Resources

Getting Divorced in Minnesota

• Minnesota Judicial Branch - Family – court forms and self-help resources for divorce and family law
• Minnesota State Bar Association - Lawyer Referral – find a family law attorney