If settlement is done by filing consent terms in court it’s legally binding. If not then do a notarised document for settlement 

1. You can decide as per your decision.

2. if the mutual settlement agreement contains settlement for both then you can  decide that subject accordingly if it was agreed to settle the amount to both separately by two payments.

You first draw the settlement agreement incorporating your views and conditions and be firm on it.

The delay in disposal of the cases should not be considered as your side weakness hence you may not show your urgency to get the cases disposed at the earliest. You may have to play clever strategies accordingly if you want to have a safe passage and and the early disposal without any hindrance, you may work on it.

1) you can make payment on date of final hearing .hand over DD to wife  obtain her acknowledgment 

2) file consent terms in court with affidavit in support 

3) get consent terms drafted by lawyer 

4) it should mention x amount is paid in full and final settlement 

- Since, you are going to take divorce on mutual consent ground , hence you can enter into an agreement with her after mentioning the payment mode. 

- You can pay the amount to her in three installments i.e. one part at the time of withdrawing the cases filed by her , second at the time of first motion and the third on final divorce decree passed by the Court or you can even pay to her at the time of giving statement on second motion 

- A mutual divorce decree cannot be challenged by either of the parties. 

1. DD with client is equal to DD with lawyer. He has no reason to ask for possession of DD. You can provide him photocopy of DD.
2. Put the agree sum for daughter  in fixed deposit to be matuered on agreed date.
3. Close the case on the basis of terms of settlement in Family Court and submit the  copy of order of Family Court in the  Court of Magistrate. Order of civil Court is binding on criminal Court, your dvc will be closed by Magistrate.
4. Terms are matter of agreement between the  parties but you can ensure…
5. There is no claim of any maintenance amount in future.
6. You will have visiting rights to daughter.
7. You can take the daughter for vacation.
8. You can bring the daughter to spend time is grandparents.
9. There is no guarantee that, wife will not file any cases in future but you can get such cases by producing the settlement order of Court.

Dear Client, 

Since you and your wife have now agreed to settle, the safest way forward is to prepare a clear written settlement agreement (MoU) that spells out the exact payment by Demand Draft, custody and visitation terms for your daughter, and a clause that both parties give up all future claims of maintenance, alimony, or property rights, then file this agreement before both the divorce court and the DVC court so it is recorded in the orders; you can bring the DDs to court on the date of final hearing and hand them over in open court at the time the mutual divorce decree is granted, ensuring the judge records the exchange, which removes the risk of paying before cases are closed; it is also advisable to issue separate DDs in your wife’s and daughter’s names if that is part of the settlement, and to make sure the settlement expressly states that these payments are in full and final satisfaction of all claims so that no fresh proceedings can be filed later.

I hope this answer helps you. For any further queries please do not hesitate to contact us. Thank you. 

1. Payment by DD – Keep DDs with you. Hand them over in open court only after the judge records settlement and both cases are closed. Get it written in the order that full payment is received.
2. Child Terms – Issue one DD to wife, one to daughter. Settlement must say this covers all past, present, future maintenance. Clearly write custody/visitation terms.
3. Settlement Agreement – Must include:

• Both divorce and DVC cases stand disposed as per settlement.
• Wife and child have no further claims for maintenance, stridhan, alimony, or any future proceedings.
• Binding on both parties and their heirs.

The terms of settlement has to be comprehensive and it has to incorporate the entire gamut of factual and legal aspects, including full and final settlement of maintenance, child custody and visitation, education expenses of the child, medical expenses and any other miscellaneous expenses. Bear in mind that one time lump sum amount as maintenance shall not absolve you of your legal liabilities unless and until your wife has solid education and employment background.

Your lawyer has to keep all these factors in mind before suggesting you to settle the matter.

G.Rajaganapathy

Advocate

High Court of Madras

For safe and final closure of your divorce and DVC cases through settlement, prepare a joint compromise petition recording all terms, and file it simultaneously in both courts. List both matters on the same day by mentioning before each judge (through your lawyers) that settlement requires closure of both cases together. On the hearing date, bring the original Demand Drafts (DDs) and produce them directly in open court only after both sides have confirmed to the judges that ALL settlement conditions have been fulfilled and both sides’ applications for closure/withdrawal have been recorded and signed in court by both parties.Your settlement terms should specify:That immediate, full and final payment is made in open court, conditional on both divorce and DVC being closed.That both parties release all claims (maintenance, custody, property, stridhan, criminal complaint, etc.) and will not file any further civil or criminal proceedings relating to the marriage.That custody, visitation, and all relevant arrangements for your daughter are finalized in writing, with the DD for your daughter’s share being delivered in court with confirmation that this is full and final and that her mother or legal guardian has no further claim.An explicit clause on withdrawal/closure/disposal of all mutual complaints/applications/counter-cases as part of the same compromise.Ask the court to record the entire settlement as a final order and have the DD handover reflected in the court order. This ensures that all terms are binding, enforceable, and that neither party can raise future claims on the issues settled. Never hand over the DD outside court or before the courts pass final “disposed as settled” orders in both cases.

Payment by DD:- 

Hand over the DD only in open court at the time of recording settlement/judgment.

Mention in the settlement agreement that DD shall be exchanged simultaneously with disposal/closure of both cases.

Child Settlement Terms:- 

Two DDs are fine (wife + daughter).

Clearly state: custody/visitation rights, maintenance responsibility (if any future claim is barred), and that the DD in the daughter’s name is in full and final settlement for her welfare.

Final Agreement Must Include:- 

Both parties withdraw/close all pending cases (Divorce + DVC + any other).

Acknowledge that no further civil/criminal/maintenance claims will be made in future.

Settlement is full and final and binding under Section 25 HMA (permanent alimony clause).

Terms recorded in the court order/judgment so they carry legal force.

Best Practice:- File a joint memo of compromise before both courts. Exchange DDs only on the day both matters are finally disposed of. This ensures safety and finality.

I understand your concerns regarding the closure of both your contested divorce case and the DVC case, and the simultaneous payment of the settlement amount. Since both matters involve financial settlement and minor child issues, careful structuring of the agreement is essential. Here is a professional overview:

1. Payment and Risk Management:

   • It is prudent not to hand over the full DD to the other party or even your lawyer before the finalisation of both cases.

   • To ensure simultaneous settlement and payment, the DD can be deposited in court through your lawyer as part of the settlement filing.

     • Courts often allow settlement amounts to be deposited in escrow with the registry or as part of the final decree.

     • This ensures payment and case closure occur simultaneously, leaving no risk of non-cooperation by either party.

2. Child Settlement Terms:

   • For a minor child, any financial settlement intended for the child must be carefully documented:

     • Clearly mention that the DD is for maintenance, education, and welfare of the child.

     • Specify that the mother will hold the funds in trust for the daughter until she reaches majority or as agreed.

     • Include conditions for expenditure and accountability, if necessary.

   • Directly issuing a DD in the child’s name can be legally problematic; the court usually prefers funds to be administered through the custodial parent under a clear agreement.

3. Settlement Agreement – Key Terms:
   To avoid future disputes, the agreement should include:

   • Full and final settlement: Clause stating that all claims, past, present, and future, between the parties, are settled.

   • Mutual release: Both parties waive any future claims related to finances, property, or alimony beyond the agreed amount.

   • Child custody & maintenance: Specify custody arrangements, visitation rights, maintenance obligations, and management of funds for the child.

   • Payment mode and closure: Specify payment through court escrow/DD at the time of the final hearing and that the decree is dependent on this payment.

   • Legal enforceability: State that the agreement is binding, irrevocable, and enforceable in law.

   • Governing law & jurisdiction: Clearly mention the court(s) and applicable law under which the settlement will be enforced.

4. Closing Both Cases Safely:

   • File a joint settlement petition in both courts along with the agreement.

   • Request the court to approve the settlement and issue a final decree, conditioned upon deposit of the settlement amount (DD) in court registry.

   • Once approved and decree passed, the funds can be released, ensuring simultaneous closure of both cases and payment.

Next Step:
I recommend that we draft a comprehensive settlement agreement reflecting all these terms, structure the payment through court escrow, and file joint petitions in both courts. This will ensure that:

• Payment occurs simultaneously with case closure.

• Custody and financial arrangements for your daughter are legally secure.

• Both cases are closed finally with no risk of future disputes.

You may connect with me for a detailed consultation so I can prepare the settlement agreement and coordinate filing in both courts, ensuring a smooth and legally safe closure.

Best regards,
Advocate Aman Verma
Legal Corridor