Divorce is a deeply personal and difficult experience. If that weren’t enough, it also comes with financial strain.
Understandably, you'll have many concerns about the potential financial cost of divorce. In this post, we’ll look at what you need to know about handling finances during a divorce, including an overview of key costs and strategies for budgeting through legal proceedings.
Tax Implications and Other Fees
When considering the implications of divorce, be sure to thoroughly research your state's laws and fees regarding the process. Stay up-to-date with state requirements. This will keep you aware of any financial burdens you may encounter during this difficult time.
To get full information on pertinent taxes or fees that apply in your state, consider consulting with an experienced professional. An attorney can walk you through an itemized list of expenses.
Splitting Assets in a Divorce
Asset division is complex. It includes dividing property, investments, cash savings, real estate, pensions, and more.
Depending on your state, you may be able to keep property outright, or you may be forced to pay your spouse half of anything you keep.
First, you must establish what property you can retain. Then, you must factor in the cost of keeping that property. There are no “one size fits all” answers for how this issue will resolve. You must work with your attorney to reach fair settlements that don’t overly benefit or harm either spouse.
Legal Expenses in a Divorce
Legal expenses and professional fees are an unavoidable part of the divorce. It's essential to consider the costs associated with lawyers, court fees, appraisers, accountants, and any other professionals.
Thoroughly researching prices beforehand can help you work out an approximate budget for the process. Keeping track of all your legal expenses can also help after your divorce is finalized, as these costs may be tax-deductible. Make sure you have a support system as you go through this tough process, both financially and emotionally.
Remember to consider whether you must also pay for your spouse’s legal fees. Also, factor in the animosity involved in your divorce. Any claim your spouse makes, no matter how outrageous, must be countered. This adds time and money to the overall process.
Settlement Agreements
Settlement agreements contain all the financial obligations each party agrees to accept and fulfill. A certified family law professional can help analyze these documents, creating an approximate picture of your financial future. Look over these details now in case your financial situation changes. Doing so can fully prepare you for those eventualities.
Support
Remember, the cost does not always stop after the divorce is over. Many will still face support obligations for either their children or their former spouse.
Such obligations must reflect each spouse’s income, and they cannot overly burden one person. Make sure you have a good attorney that can help you reach a reasonable spousal or child support decision.
Options That Can Save You Money in a Divorce
If this article is instilling fear, take a breath. It is not our intention to scare you. We simply want you to be realistic and prepared for what is coming.
You also have options outside of a courtroom for your divorce. For instance, you can attend a single mediation meeting and clear up most of your negotiations. Mediation allows both spouses to work with one legal professional. You pay only for the time it takes to negotiate along with some court fees.
Establish a Budget to Track Your Money During & After Divorce Proceedings
When going through a divorce, a budget is an essential tool that helps keep track of your money. You can use it to weigh upcoming financial decisions while keeping yourself fed and housed.
Take the time to list your expenditures, and allot funds accordingly. This allows you to plan proactively. It’s also crucial to make sure that you are receiving accurate information from everyone handling your finances during this time.
You should update this budget regularly. This keeps you in control, and it helps you make informed decisions about your money going forward.
The team at Singleton Smith Law Offices, Inc. is here to help you have a fair, clean divorce. We can work to make sure that you are kept afloat during this time, and we are committed to helping clients stay financially sound in the future. If you have questions or concerns about the expenses associated with your divorce, reach out to us online or call our office at (951) 779-1610.