Seven Ways to Save Money While Going Through a Divorce
By Space Coast Daily // January 9, 2020
Divorce is often a long, exhausting, and financially draining process. This article outlines the best strategies to save money during a divorce, and even afterward.
How Much Does Traditional Divorce Cost?
The latest report shows that the average cost of divorce in the U.S. is $15,000 per person. This includes expenses like attorney’s fees, court fees, and costs associated with hiring experts like a tax adviser, a real estate appraiser, or a child custody evaluator.
You already have too much on your plate. These figures surely have made you feel worse.
Fortunately, there are several ways to ease the financial burden of divorce. Check these out:
Create a Personal Budget and Stick to It
Before anything else, keep in mind that in addition to the cost of divorce, you will also have to deal with your daily expenses – food, gas, utilities, rent or mortgage, etc.
And if you’re the only one who’s currently taking care of your children, the higher your expenses are.
Check your income. Does it match your monthly expenses? Is it able to cover your divorce expenses at the same time? If yes, you’re good.
Otherwise, you will have to create a budget that suits your current situation and stick to it. There might be times when the expenses will outweigh your cash flow. In such a case, it can be helpful to find ways to augment your income, such as getting personal loans for fair credit.
Work With Your Spouse
The easiest and least expensive way to settle a divorce is to work with your spouse. An uncontested divorce means that you and your spouse don’t have any disagreement over financial and other divorce-related issues.
It can save both of you time, money, and effort. You could even skip hiring an attorney and opt for an online divorce solution, which is a lot, lot cheaper and easier.
No more court hearings and endless consultations with an attorney. No more hiring experts. You can even your marriage by filing and managing your uncontested divorce online.
Consider Sharing Information and Cost with Your Spouse
If you are unable to work with your spouse for an uncontested divorce, you could at least try to remain civil and help each other out by exchanging documentation that shows the balance of your assets, such as your mortgage, loans, and retirement accounts.
Playing hard on each other will not only cost you more time (and energy). It will also cost you more money. For instance, if you can’t agree on the value of your home, the court might ask you to hire an appraiser, which basically an added cost.
Prepare for Rough Patches
Even if your relationship seems cordial, prepare for disagreements. Consider gathering the important paperwork before filing a divorce. Note that the harder it takes for you to obtain the information needed, the more money you will spend paying your attorney and some other people to do it for you.
Work Together to Reduce Conflict
While it may not be possible to agree on everything, you and your spouse should at least try to agree on something to reduce an expensive conflict. If you need to hire an expert, for example, see if he/she will split the bill with you.
Try to work out issues like what visitation schedule or whether the children will attend a public or private school to minimize the need to pay your attorney to handle those things for you.
Track Your Expenses
As soon as you know that divorce is inevitable, start tracking your household income and expenses. This is crucial for the court in determining the division of property, assets, and debts between you and your spouse, and in awarding spousal or child support. Moreover, tracking your household expenses can also help you create a post-divorce budget.
Don’t Let Your Attorney Handle Everything
The more work your attorney needs to do, the more you will have to pay him/her. There are some things you can do on your own, such as gathering information.
For example, if you and your spouse have joint financial accounts and assets, you don’t need to tell your attorney to ask copies of these documents from the other side.
Divorce is an expensive undertaking. But by following these tips and suggestions, you can significantly cut down the cost.
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