Settlement agreement refers to the agreement between the parties that determines all of the issues between them and is adopted by the court at the time the final judgment of divorce is rendered. No every case needs a settlement agreement. The agreement is needed in cases where the parties have obtained marital property during their marriage (including pension, IRA, 401K accounts), parties have children under the age of 21y.o (23y.o. if child is a full time college student) or parties received professional degrees during the marriage.