Divorce is expensive. That is, if you factor in legal fees, court costs, and the like. But it doesn’t have to be that way. There are ways you can lower these expenses and keep more cash in your pocket when you divorce.
Before even thinking about starting the divorce process, it needs to be gathered all financial records. You need to know your assets, your debts, and your income sources. Some examples include using tools like the divorce tax calculator from PaycheckCity to figure out your tax obligations.
Here’s how you can reduce the cost of your divorce.
Choose Mediation Over Litigation
Court battles are expensive and time-consuming, while mediation is a cost-effective alternative. A mediator helps both parties reach an agreement without a long legal fight. It saves you money on attorney fees, and it moves more quickly. Many couples find mediation less stressful than going to court.
Work Together to Settle Issues
The more of you and your spouse agree on things the less you will spend. Try to agree on property division, child custody, and support payments without having to go to court. This saves on attorneys' fees and can amount to thousands of dollars. Cooperation is also useful in order to keep a healthier post-divorce relationship.
Limit Attorney Involvement
Some situations require an attorney’s involvement, but others don’t. Only use them when you need them. There are many tasks, for instance, completing forms and collecting financial records, that do not require an attorney. If both of the spouses are in agreement about the crucial matters, one attorney can prepare the final agreement without the need for both of you to engage the services of independent lawyers.
Use Online Divorce Services
For the do-it-yourselfers, if you and your spouse are in agreement on most terms, you might want to try an online divorce service. They are far cheaper than hiring an attorney to provide legal documents. They are perfect for uncontested divorces. It is just you need to make sure the service you are using is in compliance with your state’s divorce laws.
Avoid Unnecessary Court Appearances
Every court appearance is expensive. It is always wise to try to handle as many problems as possible outside of the court. There are some states that offer online hearings or paperwork only divorces that can save time and are cheaper. See if you can keep down the number of court appearances you and your attorney discuss.
Organize Your Documents
This is because lawyers charge for their time, and if they spend your hours organizing your documents, then the costs will be high. Your financial statements, tax returns and other paperwork should be kept in order as much as possible. It also means that your lawyer will spend less time on your case, which will cost you less.
Close Joint Accounts Early
Having joint accounts can lead to financial disputes. Shut down all credit cards and separate bank accounts as soon as you can. This keeps your spouse from running up debt that you could potentially be held liable for in the future. It also makes asset division simpler, which can save on legal expenses.
Divorce doesn’t have to drain your savings. By planning ahead, working together, and choosing cost-effective solutions, you can reduce expenses. Focus on cooperation and smart financial choices to make the process as smooth and affordable as possible.
