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To create an effective separation agreement or settlement, follow specific principles: be clear and specific in drafting, use plain language, create separate lists for personal property, consider tax implications, and include dispute resolution mechanisms. Detailed and specific language is crucial to avoid confusion and ensure clarity. Separate lists for personal property help prevent disputes. Tax implications should be considered to avoid financial issues. Lastly, including dispute resolution mechanisms can help resolve conflicts without going to court. Follow these principles to protect your family's rights and move forward with your life.