There are the obvious ways to stop money being an issue in divorce such as stopping the credit cards and getting rid of joint accounts. The big money bills need to be sorted out pretty early on in the separation process.
It is the things you may not have thought of that can save you a lot of money as you go through the process. Check the list below to see where you can save money:
- If you need extra cash, see if you can borrow it from your parents or family as they are unlikely to charge you interest. A credit union would be the next place to go if you do not have family, try not to use credit cards as the interest is great and if you do not know when you will be able to pay them off you may find yourself in trouble. Also, knowing you have access to money will give you a sense of respite so you do not make quick and pressured decisions.
- Try mediation. Mediation is great if the participants want it to be. Working together in mediation with one or more mediators to help you work through the issues by keeping things relatively calm can be a good way of solving problems before litigation. Even if, only some of the issues are agreed upon in mediation, it is money saved, and the process moved along.
- Arbitration is another step you can take before going to court. Arbitration is less expensive than court and you get the input of a ‘judge’ who acts as an impartial observer to advise on the outcomes.
- Do not waive your right to spousal support even if you want to until you are sure that you can manage without it. Once spousal support is waived it cannot be reinstated so be very sure you do not need it, even for a small amount of time while you get yourself on your feet.
- If you are entitled to spousal support then consider taking it as a lump sum if that is possible. A lump sum can be invested and interest earned to live on. Unfortunately the default rate on spousal support is about 50% so if you think this a possibility maybe a lump sum would be a better option.
- Child support can be arranged without going to court, if you have agreed on child maintenance and child living/sharing arrangements then your province/country would probably have guidelines to follow on the child support. They may even have collection agencies in place so that the paying of the child support is never an issue.
- Try to find some common ground with your ex that you can negotiate from. If you know that your spouse feels strongly about something and you don’t then start there as a negotiating point. Document all your agreements and points of difference so there is an understanding between you about where you are headed.
With these few pointers you are well on your way to saving money on your divorce as well as creating a respectful separation that you and your partner can be proud of.
Source: Ways To Save Money in Divorce
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