Divorce can be a big change for your finances. The divorce process has gained a reputation for being expensive and difficult for families. However, divorce does not have to break the bank.
During your divorce, you will have numerous choices to make, from the lawyer you hire to the property you prioritize. Each of these choices can impact the bottom line – and some decisions might make divorce more affordable.
Be ready to compromise
One way to save money is to figure out what you and your spouse can agree upon. In many cases, negotiating to avoid court as much as possible can help keep legal expenses low. Litigation can take longer and involve extra costs than alternative options like mediation.
Some issues might still require court decisions. However, reaching an arrangement for as many matters as possible can help streamline the process.
Pay close attention to property division
The property division process is likely to have the greatest affect on your financial standing post-divorce. Therefore, make sure that you have a cohesive divorce strategy from the beginning.
Keeping some types of property, such as debt, or selling/transferring property, such as a house, can have unintended consequences. In the moment, a trade-off might seem worthwhile. However, the costs of upkeep, interest, taxes and other issues could eventually cause more losses than benefits in the long run. Discussing your decisions with a lawyer can help you identify hidden risks.
Look for straightforward, affordable legal services
Planning ahead for the costs of divorce can be tough when the fees are uncertain. That is why it is often helpful to work with an attorney who is open and honest about what to expect – and what they offer.
For example, a flat-fee payment structure can present many benefits, including allowing you to budget accurately and preventing costs from ballooning as your divorce unfolds. Not every law firm offers flat-fee divorce, so it is important to ask your prospective lawyer about their fees.
You are in control
While divorce can pose a major change to finances, many families find that the relief it brings makes divorce worth it. You get to have a degree of control over the outcome through the options you choose along the way.