Three Strategies for Minimizing the Financial Cost of Divorce

If #divorce is on your horizon, one thing you are likely wondering about is how much the process will cost. After all, you’ve heard the war stories from friends and family members who have, as they say, “been there, done that” with the legal bills to prove it.

But does divorce always have to drain you financially? The answer lies in how you approach the process.

Taking a scorched earth approach – where you fight over every last detail – will quickly run up the legal fees. Of course, rolling over and just letting the other side call all the shots will probably cost you more in the long run. So what can you do to try and keep control of divorce costs? Try these three strategies.

Pick Your Battles – Divorce brings with it many potential conflicts along the way. But do you really want to pay your attorney to fight over a cupboard full of Tupperware? Before you get too far along in the process, ask yourself what is most important to you after the divorce is finalized. Is it keeping the marital home? Custody of the children? Preserving your retirement accounts? Identify the most important issue to you, then channel your resources in that direction.

Try the Collaborative Process – Although the idea of a collaborative divorce has been around for several decades, it has just recently gained momentum as an alternative to the litigation model of splitting up. When you and your spouse agree to use the collaborative model, you agree to behave respectfully, provide full disclosure of all relevant facts and use a team of collaborative professionals (attorneys, accountants, etc.) to work through your issues. The end result is an agreement that both of you can live with in the long term, without resorting to drawn-out battles in court.

Leave the DIY for Home Improvement Projects – Unless you happen to be a lawyer trained in the nuances of divorce work or you and your spouse have agreed on all the details – avoid representing yourself in court. The money you spend on a good divorce attorney to represent you will pay dividends in the long-run and help you avoid costly mistakes. For a lot of people who try the self-representation route first, they ultimately end up hiring a lawyer anyway and paying more for the lawyer to sort out the mistakes made along the way.

Going through a divorce can lead to financial uncertainty and concern. Visit our website to learn how a Divorce Transitional Support Advisor can help you or your client regain financial stability after a divorce.