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.

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To love and then to part is the greatest sorrow of the world, whoever had said was right. To love somebody to be into relation thinking to hold each other’s hand in good and tough times. Is all in vain, once couple decides to get divorced. In today’s world the case of divorce is much higher in comparison with few years back. This is due to change in thought and lifestyle that has changed entirely the structure of family, relation or marriage.



Two people when they are married it is necessary that problems will come. But to end the relation is not the solution. If it is continued then hardly people will leave who are married. The case of divorce had increased due to lack of comp ability, impatience, lack of communication and intimacy. Even the attitude of women had changed a lot. They have became more career oriented. The place of money had become importance then value and respect for each other. But in truth, except in extreme cases, chances are high that at least one of the people if not both, really does not want a divorce. There will be ramifications from family members, friends, at place of employment, or just really do not want all those hassles.



Before taking any step first ask yourself this question that divorce is really what you want, or if there are some things that you could and should be doing differently, looking at from a different perspective, and taking a more subjective viewpoint . Divorce usually becomes a situation when two people who were once very close, perhaps even soul mates, have become separated, due to communications, or rather, a LACK of communication between the two. Communication is a two way street. . One person cannot do all the talking and the other one do all the listening. Talking is a skill that most of us are born with, but very few of us have really mastered, or even tried to master the fine art of listening. You need to listen to what your partner is saying, and value that input since that is what they are thinking, that is what they are at right now.



First, determine what has caused to stop communicating effectively with each other. In today’s world, the answer to that is that both of couple worked full time, and at the end of the day, since both put so much of energy at office job, they have very little energy left over to devote to relationship. Such a situation is not good and will inevitably without fail be detrimental the relation. Efforts should be made to save some energy to communicate with your spouse after a long hard day at work. It may actually help you to unwind, instead of rerunning the day’s hassles in your mind, to put those things out of your mind and concentrate on something else, like your spouse, what they did today, and what was important in their day. Showing interest in the other is always a step closer towards effective communication.



It is always wise to think or find solution for the problem. To run a family proper understanding, respecting each other thoughts is essential. Try to understand your partner and with patience try to resolve the problems. As no problem in this earth is there which cannot be solved. Only which is required is close intimacy and honesty, for happy family.