How to Save Money During Divorce
How to Save Money During Divorce
Divorce can be emotionally draining and contentious but even in the most amicable of circumstances it can also be very costly. While you may have thought the wedding was incredibly expensive, a divorce can be just as expensive. For many, divorce is already difficult and when you add in the stress of dividing finances and assets the whole thing can quickly become overwhelming, leaving you with fear for your financial future. NBC News points out just how much a divorce can cost in the U.S. today, “Divorce proceedings can range anywhere from several hundred to several thousand dollars. Estimates on the average cost of divorce in the U.S. range from $15,000 to $30,000. Where does all that money go? The bulk of it, predictably enough, goes straight to the lawyers. Matrimonial law work is currently a staggering $28 billion a year industry. Court fees can also add a hefty sum to your divorce bill; a mere two-day trial can set you back as much as $25,000 (less expensive options, like formal arbitration, still run between $5,000 and $10,000). But if you’re looking to reduce those costs or to avoid them altogether, you’ve got a few alternatives.” There are ways to save money in your divorce and all does not have to be lost. First and foremost, you will need professional help with divorce mediation to avoid a lengthy and costly trial. With your divorce, there will be seemingly endless amounts of paperwork to complete and file but the paperwork can be confusing to complete on your own. To pay a divorce attorney to help you complete all of your paperwork and handle your divorce will cost you a pretty penny. Through divorce mediation, you will receive the help you need at a significantly reduced rate. The level of complexity of your divorce will dictate just how difficult it will be to divide finances and assets and thus, how much it will cost you, but there are ways to save money during divorce.
- Communicate With Your Spouse
- There are many contentious and stressful divorces but there are also many that are amicable. Even if you are angry with each other, if at all possible, try to communicate with each other regarding the divorce. The more you insist on going through lawyers to communicate, the more expensive your divorce will be. Open communication will speed things up and the shorter the process, the less expensive it will be.
- Keep Immaculate Records
- o The more your finances are in order, the easier things will be. If you get all of your financial records together in advance, and keep track of expenses, there will be less confusion over who spent what and when, and your divorce will not be drawn out by trying to figure out all of the finances.
- Review What Your Spouse Reports Financially
- While sorting through finances during divorce can get confusing, it is important to personally review everything your spouse reports during the divorce process. Child and spousal support will be based on the income of both parties and you want to be sure that income is reported correctly.
- Open Separate Accounts
- If you had joint accounts while married, close them immediately and open separate accounts. If you and your spouse share a joint account and your spouse goes out and makes major purchases with money in the joint account or on a joint credit card, you could be held financially responsible for those purchases because your name was on the account.
- Use a Mediator
- Divorce attorneys are very expensive and each phone call and meeting will be billed at a very high rate. Even contentious divorces can be managed through an experience and knowledgeable divorce mediator. A mediator will cost much less than a lawyer and will help you prepare paperwork, work through the emotional frustrations of divorce and help everyone communicate properly so that your divorce will be resolved quickly.
