South Carolina Divorce Settlement Agreement Worksheet

Why You Need a Settlement Proposal Before Mediation

South Carolina requires alternative dispute resolution (ADR) before a contested divorce can go to trial. That means you and your spouse will sit down with a private mediator — typically charging $150 to $400 per hour — and try to reach agreement on property, debt, alimony, and everything else.

Walking into mediation without a structured settlement proposal means you're paying the mediator to help you figure out what you want. Walking in with a documented proposal — asset inventory, debt allocation, proposed division percentages — means the mediator can focus on closing the gaps between two positions. That's the difference between a four-hour session and an all-day marathon.

What a Complete Settlement Agreement Covers

A complete South Carolina marital settlement agreement for an uncontested case should address each financial issue the parties want the Family Court to resolve. If a material issue remains unresolved, the simple uncontested path may not be available.

Property Division

Every marital asset must be listed, valued, and assigned to one spouse. This includes:

• Real estate (family home, rental properties, vacant land)
• Bank accounts (checking, savings, money market, CDs)
• Retirement accounts (401(k), IRA, pensions)
• Investment accounts (brokerage, stocks, bonds, mutual funds)
• Vehicles (cars, trucks, boats, recreational vehicles)
• Personal property of significant value (jewelry, art, collections, electronics)
• Business interests (ownership stakes, partnerships, professional practices)
• Life insurance policies with cash value
• Money owed to either spouse (loans to family members, security deposits)

For each asset, you need the current fair market value and how it's classified — marital, separate, or disputed. The total marital estate gets divided according to whatever percentages you and your spouse agree to (or the court orders if you can't agree).

Debt Allocation

Every marital debt gets the same treatment: listed, classified, and assigned. Include the creditor name, account number, current balance, monthly payment, and whose name is on the account. Your agreement should specify not just who's responsible for each debt, but also include indemnification language — if one spouse defaults on a debt assigned to them, they're liable for any damage to the other spouse's credit or finances.

Alimony

If either spouse is requesting or waiving spousal support, the settlement must address it explicitly. For alimony awards, specify the type (periodic, lump-sum, rehabilitative, or reimbursement), the amount, the start date, the duration or end condition, and the termination triggers.

Health Insurance and Other Benefits

Address what happens to health insurance coverage. If one spouse was covered under the other's employer plan, they'll need to arrange COBRA continuation or find individual coverage. The settlement should specify who pays the COBRA premiums and for how long.

Tax Filing Status

For the tax year of the divorce, you'll need to determine whether to file jointly (if the divorce isn't final by December 31) or separately, and how any tax refund or liability for that year gets divided.

Building the Worksheet

Start with a simple two-column layout: one column for each spouse. List every asset and debt with its current value. Assign each item to one spouse and tally the totals. For a 50/50 target, the difference between the two columns determines the equalization payment; for another agreed percentage, calculate the payment needed to bring each spouse to that target.

The worksheet should track:

• Gross value of each asset
• Net value after subtracting attached debt (a house worth $400,000 with a $300,000 mortgage contributes $100,000 in equity)
• Tax-adjusted value for retirement accounts and appreciated assets (a $200,000 traditional 401(k) is worth less after taxes than $200,000 in a savings account)
• Running total for each spouse's column
• Equalization payment needed to reach the target split

Common Mistakes in Settlement Proposals

Comparing pre-tax and post-tax assets at face value. Retirement accounts carry deferred tax liability. A $300,000 traditional IRA may be worth only $200,000 after taxes, while $300,000 in a bank account is worth $300,000. Treat them as equivalent and you're giving away real value.

Forgetting latent capital gains. The spouse who keeps the marital home may owe capital gains tax when they eventually sell if the gain exceeds the applicable $250,000 individual exclusion, subject to the occupancy rules. Build that potential tax liability into the comparison.

Ignoring the time value of deferred assets. A pension that won't pay out for 15 years is worth less today than the same dollar amount in a liquid savings account. Present value calculations matter.

Leaving debts to "work themselves out." Every debt needs a specific assignment and indemnification language. Vague agreements like "we'll each pay our own credit cards" fall apart when one spouse defaults and the creditor comes after the other.

The South Carolina Divorce Financial Split & Asset Division Guide includes settlement proposal worksheets that handle the equity calculations, tax adjustments, and equalization math — giving you a documented, defensible proposal to bring to mediation or your attorney.

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