Dealing With The Financial Fall Out Of Divorce
Divorce can be a painful time for a family. Not only can emotions run high, the cost of divorcing can too. Lawyer's fees, court fees, moving expenses, and other costs associated with divorce can make either party's financial position precarious. The financial burden of divorcing can be difficult to deal with. However, there are a few ways to lessen the financial blow of divorce. Here are three things that can be done in order to ensure more financial stability during the divorce process.
Try For An Uncontested Divorce
One thing that can save a great deal of money is by not going to trial. This means having an uncontested divorce instead of a contested one. In an uncontested divorce both parties agree on things like asset division, child custody, and support payments without going to court. Most people still require the services of a lawyer in an uncontested divorce, but it can still be substantially cheaper. The average cost of a contested divorce ranges from $15,000 to $30,000 while an uncontested divorce can cost as little as $250 to $500 if no lawyers are used. Reaching an agreement before going to trial is the best way to save money.
Close Joint Accounts
One of the biggest issues during a divorce is that it's very easy for debt to accumulate. It's also possible for an unhappy partner to ring up charges on credit cards and to spend money out of joint bank accounts. In the end, both people end up paying for it down the road. Closing joint accounts as soon as possible is the best way to remove the temptation to do this. It's also important to do some housekeeping when it comes to the bills. Figuring out how much debt there is, who it belongs to, and who should pay it are all important steps.
Division Of Debt And Debt Relief
The best way to deal with joint debt during a divorce is by paying it off before initiating the divorce process. However, the average American household is $132,086 in debt, with $15,310 of that number being credit card debt. This means that paying it off can be difficult. Family court usually divides the debt as fairly as possible. For those who have trouble paying down debt after the divorce there are options for debt relief. Debt consolidation, credit counseling, debt settlement, and bankruptcy are all options. Hiring a professional or company to help deal with debt can cost money but it can also get someone back on their feet. Bankruptcy should be a last choice for those struggling but it can be a good way to move forward with a clean slate. Bankruptcy fees run between $310 and $335.
Financial decisions during and after a divorce can be difficult. In general the best way to save money is by having an uncontested divorce and by paying off as much shared debt as possible. For those having difficulty after the divorce there are debt relief options available. For more information,m talk to a professional like Dennis Lee Burman Attorney at Law.