Home > News
Experts are warning married couples to make sure they are confident in their decision to divorce before beginning the long and arduous process. While divorce is notorious for being an emotionally draining process, most people are surprised at just how financially trying it can be. Legal fees, single living and the complications of organizing the ‘mines, yours and ours’ of monetary and property belongings can surmount to excessively high prices that couples and divorcees often find themselves unprepared for.
Financial planning for divorce can be instrumental in preventing the exorbitant expenses associated with divorce. A common financial problem that divorce lawyers and experts see in couples facing divorce is when one person has sole control and knowledge of the household’s finances. More often than not, women seem to be the one’s with little knowledge of the couples finances. This can be a serious problem when the time comes to determine the division of funds. If you don’t know what belongs to you, then it is difficult to deal with financial legal matters.
In addition to knowing your financial situation, it can be helpful to have money in an account that is only available to you. Often when joint accounts are opened by married couples; the money is then considered to be the property of both parties. You can protect yourself from financial ruin by setting aside some of your own savings or paychecks and putting it in an account independent of your joint accounts.
The cost of lawyers can also bear a substantial cost to both parties in a divorce. Make sure to have your own personal lawyer who can deal solely with your case. Since lawyers can charge you from $175-$500 per hour, it is important to be as prepared as possible when utilizing a legal expert.
First, find out exactly what your lawyer’s fees are, in addition to what exactly they will charge you for; phone calls, visits, and additional time put towards the case. Before you request that your lawyer do the grunt work of gathering your financial documents and legal papers, try to put together everything that you have and make photocopies. This can be an extremely costly process when you outsource it to another.
Budgeting for a divorce can also be an important step to avoiding excess financial stress. Estimate your expected costs and needs and try to plan your finances accordingly.
While divorce is an inevitably a long and draining process, these steps to prepare financially for your divorce can minimize stress levels and protect your interests. Often, women who are emotionally distraught over a divorce will put minimal effort towards gaining the financial settlements of the split as long as they can keep the kids and the house. This, however, is not economically a wise decision and can and should be avoided with a few extra precautions and some independent fiscal planning.