In TTL, the war of Spanish Succession would end sooner. In OTL, the treaty of The Hague was signed between the Maritime Powers (England and the Dutch Republic) and Emperor Leopold I on September 7, 1701. This treaty (which ironically contained virtually the same terms as the treaty of Utrecht) recognized Philip V as King of Spain, while the maritime powers retained their commercial rights in Spain. Austria was to receive Milan, Maples, Sicily, Sardinia, and the Spanish Netherlands. If Joseph dies in 1701, then the terms would not be changed.
The war in TTL would have the Allies successfully defending Vienna from invasion, and then driving the French from Italy and the Spanish Netherlands, and finally an invasion of Northern France. There would be no invasions of Spain and the war would focus on France. By 1708, the Allies would control the lands that had been promised to Emperor Charles VI and the maritime powers would begin negotiating with Louis XIV. In TTL, the Whigs and Queen Anne would not feel compelled to continue to fight a war in which they had fulfilled their obligations to Charles.
The peace treaty would be negotiated between France and the maritime powers. Spain and the colonies would be given to Philip. Philip would recognize Charles as ruler of the Spanish Netherlands, Milan, Naples, Sardinia, and Sicily. Philip would grant additional trade concessions to the maritime powers. Charles would recognize Philip as the rightful king of Spain and would allow the Dutch to control fortresses along the French-Southern Netherlands border. Victor Amadeus of Savoy would receive the duchy of Montferrat and some territories in Lombardy for switching sides in this TTL but would not receive Sicily nor be made a king.(in OTL, Great Britain was responsible for Savoy receiving Sicily in 1713). All parties would pledge to recognize the Protestant Succession in Great Britain. In 1708, Philip V was still only fifth in the line of succession for the French throne so there will be no renunciations by him in TTL concerning France. Neither Charles nor Philip will like the treaty but they can’t win the war without their allies.