Transitions Divorce® Prep Workbook contains information on how to avoid costly pitfalls in divorce cases

Divorce financial settlement negotiations are no different than a traditional business negotiation. When both partners do their homework prior to negotiations and arrive well prepared the mediation will run more smoothly. So to prep for divorce negotiations, both parties will want to gather the following information.

1- A comprehensive monthly budget expense sheet of new (soon-to-be) living arrangements to include changes in utility expenses, medical insurance, medical co-pays, eye care, dental care, childcare, auto insurance, rental insurance/homeowner insurance, property tax, HOA fees, children’s extracurricular/sports activities, summer camps, clothes and school expenses, and any fees related to teen drivers (driver training, vehicle, insurance, gas) and estimated anticipated expenses for the children such as birthday/bat/bar mitzvah expenses, college and weddings

2- A comprehensive family net worth worksheet-a list of all tangible assets and their current value including all bank and financial accounts (investment portfolios, CD’s, bonds, money markets), retirement accounts, pensions, social security benefit statements and any Corporate matching savings/stock options from Employer, life insurance policies if they have a cash value, real estate, vehicles, motorcycles, boats and recreational equipment, itemized inventory of home furnishings and up-to-date reports of all credit cards and debts outstanding (current credit reports are helpful)

Since insurance rates and policies will be changing it is important to get current quotes on separate policies and include these new figures in the monthly budget expense sheet.

3- A tentative parenting plan of how they envision shared custody of minor children. (a sample parenting plan found in Transitions Divorce® Prep Workbook )

Once all pertinent information is gathered, each partner should create their own priority assessment that notes the following regarding each major asset, proposed alimony and state dictated child support figures:

When one prepares these thresholds in advance, they are very helpful to refer to during the mediation process when emotions may be heightened. It is also advisable to take the gathered information and worksheets to a Tax Accountant prior to mediation and seek advice on how best to handle alimony and child support expenses as they relate to tax implications. A tax certified CPA can advise how best to convert one household to two, minimize expenses and maximize tax benefits for both parties.

I recommend that the parties compile all of the above information into a 3-5 inch ring binder with tabs so they can easily refer to these during the mediation. This will save time and money (professional billable hour fees) for the partners and helps to reduce frustration during the mediation session.

When both parties have prepared in advance and determined their thresholds they bring with them the confidence to negotiate effectively. While this preparation seems labor-intensive, we have witnessed many couples who enter negotiations without having done their homework, and end up agreeing to settlement terms for far less than they needed to survive post divorce, so the extra work in advance can ensure a solid future. A sample of a monthly expense worksheet, family net worth worksheet, child custody agreement and a complete list of documents to gather as well as additional financial suggestions are available in the Transitions Divorce® Prep Workbook (Amazon $23).

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Disclaimer: This is my personal blog. The opinions I express here do not necessarily represent those of my organization, Transitions Resource, LLC. The information I provide is on an as-is basis. I make no representations as to accuracy, completeness, suitability, or validity of any information on this blog and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its use.

The post How to Prep for Divorce Negotiations first appeared on Divorce Mediation Center.