How To Avoid The High Cost Of Divorce

There’s an old saying…”Love is grand. Divorce is a hundred grand.”

If that saying shocks you, you are not alone.  Most people tend to underestimate the cost of a divorce.  While there are no national statistics for the cost of divorce, professionals agree that the average cost for a litigated divorce today is high.  According to divorce360.com the cost of divorce for a couple with an average income of $60,000 per year with a home worth $185,000 is about $53,000. For couples making $150,000 per year with a home valued at $535,000 the cost would be about $188,000.

Traditional divorce on average takes approximately two years to complete.  This is because of the number of legal motions and court appearances incurred typically in the course of offers and counter-offers passed between attorneys to resolve differences.  The longer it takes, the more expensive it is going to be.  Plus, that is two years of being fearful, angry, and anxious.  

One way to reduce the time and cost of the divorce would be to consult with a divorce financial planner.   A divorce financial planner can help you to better understand the reality of your financial circumstances: to quantify your financial needs and your spouse’s ability to pay for support obligations, as well as analyze an equitable division of marital property.

By working with a divorce financial analyst first, you can work through the financial details with someone trained to help you understand all of the financial consequences of the decisions you need to make.  Attorneys focus on legal issues while a divorce financial planner will provide more in depth analysis of-the complex tax and financial issues that you will be facing and present recommendations for achieving -a divorce settlement that is best for you.

Another benefit of working with a divorce financial planner is that you -can plan for what your financial life will look like after your divorce.  A divorce financial planner will help you transition into your post-divorce life by helping you create  a clearer picture of your long-term financial goals and produce budgets for you so that you’ll have a realistic picture. 

Once you know what your life will look like after your divorce, you will become much less fearful which will mean that you can face your divorce with confidence. And, chances are you will be able to develop a divorce settlement much faster.   Less time reviewing offers and counter-offers and less time in a court room will mean that you have more time to transition to the next phase of your life.