How To Avoid The Need For Divorce Financing

By Sandra Hamilton


Divorces may have become commonplace, but they nevertheless till hurt and cause emotional pain. When a couple splits up it is not simply a matter of moving away from each others. They have to make many decisions, especially if the marriage produced children. In many cases the process is made more complicated because on or both partners are resentful and angry. Divorcing can cost a lot of money and many couples are forced to consider special divorce financing.

When marriages dissolve, both partners often end up in a much poorer position that they were in before. In many cases assets have to be sold in a hurry, joint accounts have to be closed in order to share the proceeds and then there is the cost of hiring a lawyer. This can be a very hefty amount, since lawyers charge for every action they perform and for every minute that they spend on a case.

If divorcing couples can manage to be reasonable, they will realized that there is much that they can do to decrease the cost of the process. The legal fee can be substantially lower, for example, if only one lawyer is hired. The cost can be cut even further by privately agreeing on important issues instead of spending time in the office of a lawyer fighting about small matters.

The most expensive divorces are the ones that are contested. By agreeing on an uncontested divorce couples can lower the cost of the process significantly. They do not even have to use the services of an expensive lawyer. It is legal to rather use a specially qualified and licensed counsellor to draw up the final agreement and to present it to the court for approval.

Couples that find that they simply do not have the money to pay for their divorces may have to consider a special loan designed for such circumstances. Their are many companies that provide such loans quickly. The drawback is that these loans are expensive and they have very strict conditions and terms. Such a loan can easily dump the divorcing couple into crippling debt.

One alternative to borrowing cash to pay for divorces is to rather consider selling an asset or liquidating some investments. This may deplete the value of the estate, but in the long run it will almost certainly be cheaper than borrowing. In some cases it is even possible to borrow at much better rates against pension funds and fixed long term investments. These options should be discussed with a financial advisor.

Many newly married couples purchase special insurance policies that specifically make provision for the cost of legal services in the future. To many this may sound like callous planning for a certain future divorce. This is not necessarily the case, because such policies can also be important if the couple encounter other types of legal problems. It may be a good idea to approach a financial advisor in this regard.

Getting divorced can indeed be expensive, but it need not cost a fortune. The secret lies in adopting a reasonable attitude, to communicate with each other and to make as many decisions in private as is possible. This will cut the time spend in the presence of a professional and will subsequently lower the final cost.




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