A Property Settlement Agreement is the contract that resolves every financial and parental issue between you and your spouse in writing. Done right, it carries the marriage into a clean ending and the divorce into a quick finish.
Quick answer
Here is the answer: A property settlement agreement, often called a PSA, is a written contract where you and your spouse settle how to divide property, debt, and support, so a judge does not have to decide it for you. Once both of you sign, it is binding, and it is usually folded into the final divorce decree so the court can enforce it.
Source: Va. Code §§ 20-109.1, 20-155. Verified as of July 2026.
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Clients sometimes ask whether they need a separation agreement or a property settlement agreement. In Virginia practice, the two terms are usually used interchangeably for the same contract, with a slight difference in timing and emphasis.
Typically refers to the contract signed during the separation period, before either spouse has filed for divorce. The emphasis is on governing how the parties will live apart during the waiting period required by Virginia law.
Same contract structure as a PSA; the name just reflects when in the process it is signed.
Typically refers to the contract that resolves all the financial and parental issues of the divorce, often signed in connection with the divorce filing or incorporated into the Final Order.
In practice, most Virginia agreements are titled "Property Settlement Agreement" regardless of when they are signed, because the title makes the document's purpose clear.
One of the most important things a Virginia PSA does is set the stage for incorporation into the Final Order of Divorce. Incorporation is the legal act of the divorce court adopting the terms of the PSA and making them part of its order. That changes the enforcement landscape significantly.
Before incorporation, the PSA is a contract. A breach is a breach of contract, and the remedy is a contract lawsuit. That works, but it is slow.
After incorporation, the PSA's terms are court orders. A breach can be addressed through contempt proceedings in the divorce court, which has tools the contract court does not: the ability to compel payment, transfer property, or in extreme cases, jail a defaulting party. For things like child support and spousal support, incorporation also makes the obligations enforceable through wage withholding and other administrative tools.
Most Virginia PSAs are drafted to be incorporated. The document itself usually includes a provision asking the court to incorporate the PSA into the Final Order. The court typically does so as a matter of routine, unless the PSA is illegal or unconscionable. Va. Code § 20-109.1 governs incorporation.
A subtle but important drafting question: should the PSA merge into the Final Order, or survive the Final Order as an independent contract? The decision affects what happens if the case ever needs to be litigated again.
If the PSA merges, it is fully absorbed into the Final Order and ceases to exist as a separate contract. Enforcement is through the divorce court only.
If the PSA survives, it continues to exist as a contract even after incorporation. Enforcement is available both through the divorce court (because of incorporation) and through a separate contract action (because of survival). Surviving PSAs also tend to be harder for a court to modify, which can matter for spousal support.
Most well-drafted Virginia PSAs include explicit language addressing whether they merge or survive. The default depends on the wording of the Final Order and the PSA itself, and it is easy to get this wrong without thinking about it. This is one of the technical drafting decisions that justifies having a lawyer involved.
A PSA is the umbrella document. These related spokes go deeper on specific elements inside it.
The same document, named for the separation period. Goes deeper on what a complete agreement covers.
Read more →The legal framework Virginia uses to divide marital property. Shapes what a PSA can do.
Read more →One of the most technically demanding sections inside a PSA. QDROs, court orders, and tax mechanics.
Read more →A complete PSA touches several practice areas at once. These are the pages that go deeper on each topic.
A signed PSA is the prerequisite for an uncontested filing.
View →The mechanics of dividing accounts, property, and personal items.
View →The custody and parenting plan that sits inside the PSA.
View →Support obligations as resolved in the PSA, with merge or survive consequences.
View →Questions we hear most often from clients on a first call about what a PSA is and what it has to do.
In Virginia practice, the two terms are used almost interchangeably. A separation agreement is typically signed during the separation period before filing for divorce. A property settlement agreement is typically the document that resolves the financial and parental issues of the divorce itself. Most Virginia agreements are titled "Property Settlement Agreement" regardless of when they are signed, because the title makes the document's purpose clear. The legal effect is the same.
Incorporation is the legal act of the divorce court adopting the terms of the PSA and making them part of its Final Order of Divorce. Once incorporated, the PSA's terms become court orders, which makes them enforceable through contempt proceedings and tools like wage withholding for support. Virginia courts incorporate PSAs as a matter of routine unless the document is unconscionable. Statutory basis: Va. Code § 20-109.1.
This is a drafting decision with real consequences. A PSA that merges is absorbed into the Final Order and only enforceable through the divorce court. A PSA that survives continues to exist as a contract and is enforceable both through the divorce court and through a separate contract action. Surviving PSAs are often harder for the court to modify later, which can be a feature or a bug depending on the situation. The right choice depends on the specific terms and the client's priorities, which is why the language matters.
A signed PSA is hard to overturn but not impossible. Virginia courts can set aside a PSA on grounds of fraud, duress, undue influence, or unconscionability. These are real claims but with high bars. A spouse who signed a PSA and then later changed their mind generally cannot get out of it. This is why both parties should have the opportunity to review the agreement with their own counsel before signing; once signed, it is generally final.
Yes, and most do. A PSA can cover child custody, visitation, and child support, and those provisions are typically incorporated into the Final Order along with the rest. Two important things to know: first, the court has independent authority to modify custody and child support based on the best interests of the child, regardless of what the PSA says. Second, the PSA's custody and support provisions must comply with Virginia law and not be against public policy or the child's welfare.
For a straightforward case with cooperative parties, a PSA can typically be drafted, reviewed, negotiated, and signed within a few weeks. More complex cases involving business interests, retirement plans, real estate, or significant financial issues can take a few months. The biggest variable is usually how quickly the parties can agree on terms; the drafting itself is rarely the bottleneck once the substance is decided.
The first call is a conversation, not a commitment. We will walk you through what your PSA needs to cover and how the drafting should work.

