In this study, a finite element which has been analyzed based on anisotropic behavior of reinforced shear walls is developed. Element stiffness matrices were varied based on whether the element is in the tension or the compression zone of the cross-section. Nonlinear behavior of reinforced shear wall model is investigated under horizontal loads. This behavior is defined with a similar approach to plastic hinge assumption in frame structures that the finite element behaves lineer elastic between joints and plastic deformations are concentrated on joints as vertical plastic displacements. According to this acceptance, plastic behavior of reinforced shear wall occurs when the vertical strain reaches elastic strain limit. In the definition of finite element, displacement functions are chosen considering that the partition of shear walls just at floor levels, are enough for solution. Results of this study are compared with the solution obtained from a different computer programme and experimental results.