Five Costly Mistakes in Divorce Settlement Agreements

Five Costly Mistakes in Divorce Settlement Agreements

Analyze Finanacial Divorce Issues with Annapolis MD Attorney

I always tell clients that my work is not complete until I review the draft of the property settlement agreement. In fact, I strongly believe that a Certified Divorce Financial Analyst (CDFA) review any divorce agreement where finances (deductible alimony, retirement, pensions, etc.) are a significant part of that agreement.

But wait a minute; shouldn’t the attorney have the final say on how the agreement is written? I work with many attorneys in the Maryland-DC area and always recommend to my clients that they have their agreement created and/or reviewed by an attorney.

There is no substitute for an experienced, family law attorney in this circumstance; however, an attorney’s training primarily focuses on the legal aspects of divorce.

Specially trained CPAs or Certified Financial Planners would have a grasp on the tax nuances or specific strategies that could save either or both spouses future dollars.

Improper wording or omission of the following areas can have detrimental effects for a very long time:

  • Filing status – not addressed or not meshing with tax law
  • Dependent Exemptions – Not allocated for maximum tax advantage or wasted
  • Pensions – not addressed or not valued for equitable distribution
  • Retirement Plans – incorrect Orders or penalty-affected withdrawals
  • Details about financial calculations are uncertain

Any one of these issues, on its own, can cost either spouse or their children thousands of dollars over time. Making a small investment to get a detailed review of the document and its future financial impact on the family is an excellent use of a divorcing couple’s funds.

Email or call John at 410-988-7333 now to take advantage of our limited time offer now. John will personally review your agreement and offer recommendations for a fixed fee.

About the Author:

John Faggio is the managing director of Faggio Financial, LLC (www.divorce-finances.com), Maryland's only exclusive matrimonial finance practice. John is a CPA, a Certified Financial Planner® Professional, and a Certified Divorce Financial Analyst (CDFA®).

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