Finances are an important consideration of the many parts that go into a divorce. Finances in a divorce determine the financial well-being of spouses and children. Someone may be too afraid to move forward with a divorce because of financial dependence, legal costs, dividing assets, debt, child support, lifestyle changes, and instability. You must understand the costs, assess the situation, plan, and receive legal assistance before seeking a divorce.
Understanding the Costs of Divorce
The cost of divorce fluctuates depending on many factors, such as your residing state, spouse assets, agreements and disagreements involved, and your attorney choice if you’re proceeding with an attorney. Divorce types are divided into four categories: uncontested, mediated, collaborative, and contested. According to “Nolo’s Essential Guide to Divorce,” the price of an uncontested divorce is between $1,500-$3,000, a mediated divorce is between $2,000-$6,000 per spouse, a collaborative divorce is between $5,000-$15,000 per spouse, and a contested divorce is at least $30,000.
No matter what, it will cost money to file for divorce. It is not recommended to file for divorce alone to save money on legal fees because of the risk of being taken advantage of with certain changes you might have to make. The specific issues will have the most significant impact on the cost of the divorce, so prices can vary.
Divorce can be stressful and time-consuming, but it can be easier with some planning and good judgment. You should create a plan before jumping into anything quickly. The first step to assessing your financial situation is to get organized. Ensure you have all the proper documentation, such as assets, property, debts, home and utility, and retirement. The next step would be to review your documentation and determine the changes you must make within your bank accounts. You need to figure out what money you owe and who owns what. You will also want to monitor your credit to protect it.
It is time to budget once you feel organized and satisfied with your financial assessments. Budgeting can be made easier with an attorney or financial advisor. Your expenses will require modifications that might require help to figure out. With help from professionals, setting goals and exploring your options is best. That said, making room for legal expenses is an important step that you should remember. Some people feel safer creating an emergency fund in case something turns sideways. The best advice is to go through this with others if that is an option for you.
Several resources can be a huge help during a divorce. If you can’t afford attorney fees, legal-aid organizations can help you for a low cost or for free. Pro bono services offered by law firms can also be a free option for those who can’t afford attorney fees. As mentioned, two divorce approach options that could work for you are mediation or collaboration. A mediation divorce requires a third party to come in neutrally and unbiasedly to help reach agreements on specific issues. This can be cheaper than going to court. A collaborative divorce involves a team of professionals on both sides to help reach agreements in a divorce. Some professionals offer payment plans to assist too.
A lawyer is your best help in a divorce. They help navigate the legalities but also finances. A lawyer can answer questions about your financial rights during a divorce. They will devise a strategy using full transparency for your best interest. They want to ensure a resolution for you.
You need to consider your options when affording a divorce. Organizing, planning, assessing, and budgeting are vital factors in affording a divorce. Selecting an attorney specializing in family law will allow for a smoother process. Divorce is never easy, but you can be proactive and relieve some stress.