Negotiating your separation agreement can be one of the most trying, costly, and long-lasting events in your lifetime. Just like our transition to colder weather, a change in attitude and mindset can enhance your chances of a faster and financially positive divorce settlement.

To be better informed and able to make the tough decisions that come along in the process, take a step back and avoid these common mistakes.

Assuming your divorce will be fast and not costly

Depending upon your selection of a divorce attorney or mediator, the amount of assets at stake, the amiability of the partners, etc., your divorce can cost more money and take longer to settle than you may think. For most couples, the whole process can take one to two years. The cost can range from several hundred dollars to several thousand, even if you do not go to court (which can cost at least $30,00 plus for each spouse).

At first blush, splitting the family financial pie would appear to be a fairly simple task. An equitable property division and each spouse’s divorce rights would lead you to believe that each partner would walk away with half of what was shared by two.

This mathematical formula does not consistently work in divorce. Spouses have unequal salaries and income potential. Many times, families live beyond their means; there may not be enough money to go around. These factors, along with the typical “hanging on to each dollar” can elongate the process, which leads to additional time and mounting costs.

Selling out your future

Your final decisions concerning which assets you are keeping will have an impact on your immediate future and long-term goals. What are the hidden expenses (maintenance, income taxes, etc) of the assets you may want? Will you have enough money to pay your bills? What financial assets will you have to face unexpected costs and meet long-term goals (e.g. college costs, retirement, etc.)?

Trading away long-term options (e.g. retirement accounts) for short-term needs (desires) may not be in your best interest, and may lead you to sacrifice tomorrow for what you may want today.

Ignoring Income Taxes

Income taxes will affect most of the major financial aspects of the divorce settlement. Generally speaking, the transfer of property pursuant to a divorce is a nontaxable event. But that changes if you subsequently sell the property; and you will be solely responsible for paying the tax on all of the gain (profit) earned from the time you and your spouse originally purchased it.

Consider carefully how you will file you tax returns while you are in the process of creating a separation agreement. Although there are non-financial considerations, the Married Filing Separate filing status normally yields the highest overall tax rate. Filing Head of Household usually produces the least amount of tax.

You will also want to review the tax implications of alimony and child support, dependency exemptions, and various tax credits that are associated with the custody of the child.

There are ways to minimize the income tax affect and take advantage of tax laws, so you need to be aware of the tax consequences of these transactions.

Not protecting your financial interests

Maybe you’ve been married for 10, 15, 20, years or more. It’s difficult to think about separate accounts or removing your spouse’s name from charge cards. The reality is you are at risk any time you hold a joint interest in, or have responsibility with, or are financially dependent upon your ex-spouse.

What happens in the future if your former spouse defaults on payments, becomes disabled, goes bankrupt, or dies? You should consider these possibilities that could have a significant impact on your financial position, and take appropriate measures to protect your interest (and that of your children).

Not recognizing “A bird in hand…”

You may have to weigh decisions like this: What do you want, the Lexus worth $35,000 or the mutual fund worth $30,000? Do you want lifetime payments that begin at age 65 (or if and when your spouse retires) or $300,000 today?

Keep the phase in mind, “a bird in the hand is worth two in the bush.” In divorce situations, this axiom usually holds true. Let’s take a look at the Lexus. Sure it may be worth $35,000 now, but what will it be worth next year? If you really need cash, how much could it be sold for? The mutual fund is liquid now, will most likely increase in value, and provides a cushion for those unexpected expenses.

What about that retirement income? It sounds secure, but you may have to wait 20 or 30 years to receive the payments. It may be wiser to take the cash now, make prudent investment decisions, and build your own retirement nest egg.

In my experience, it is difficult for divorcing partners to see beyond the day in front of them. Avoiding these mistakes by obtaining the divorce advice of a Certified Divorce Financial Analyst can help you maintain your financial status and minimize the risk of financial loss.

Click Here for more divorce information about how to protect yourself and your family.

Women are habitually more favored in a divorce setting than men are. Women arguably, get hold of the most excellent piece of the deal. In selected exceptional circumstances, men get hold of custody of the tots during a custody verdict. To be aware of what may be the case with you, try to find divorce advice before, during and even after the process.

A strong circle of associates and their advice will be very much required during and after a divorce. Without someone to talk to during and after ending your marriage, you may end up feeling alone and contemplate irrational thoughts. Don’t just make use of your friends to be strong ….strive to appreciate them for their pains also.

Adopting a meditative exercise can lend a hand to you to refocus your feelings on the things that really count. Yoga has been known to be of assistance to a lot of  people who are grappling with or have gone through a divorce. Exercise such as yoga lend a hand to you to strengthen and balance out your emotional energy. This is one of the suggestions that many individuals don’t like to pay attention to but it does work very well.

You may be tempted to become self destructive after a throbbing divorce. Not eating, smoking or partying excessively can be self destructive habits divorced individuals take up. Bring back to mind that any self destructive habit you take up because of divorce will backfire on you.

The reality of being separated can be like a cold slap on your face. It can be difficult to live alone after living with an individual for so long. If you don’t accept the reality of your divorce, you might find yourself living in the past for the rest of your life. And this is the wrong way to live because you will end up being more discouraged than how you were during the last stages of the process.

Don’t waste time disturbing while in the center of a divorce, instead, pick up a positive thought pattern and keep on with it. Keep in mind, nervousness never does get to the bottom of anything.

A divorce creates lots of disorder in the lives of the individuals involved. To make certain that you walk out of the process with your heart intact, compromise and avoid playing ferocious actions.