Tips on Making your Divorce Less Expensive

Everyone knows getting divorced is an expensive process. Whether you will be the one receiving alimony or giving it, most partners involved in a divorce end up taking a financial hit. This is even true for divorce cases that are amicable.

The most complicated aspect of divorce is the splitting up of assets. For those planning to enter into divorce proceedings, these few measures could work toward curtailing your divorce costs:

Find a good and reliable attorney. Don’t just follow a friend’s recommendation. Shop around and select one that is best suited to handle your case and your specific situation.

The time when one takes the decision to split-up with a partner is an emotional one. Some people don’t realize that their financial situation is about to change and they continue to spend money the same way and in some cases, end up overspending because of the emotional stress and anxiety. This is especially true for couples with children as they feel they are already about to put their children through a rough patch and they somehow try to make up for it by overcompensating them – excessive shopping for toys, unnecessary clothes, electronics and so on.

Try to be as fair as possible. The effort to outplay the other partner is what usually results in trouble and excessive costs during a divorce. Couples tend to argue over the splitting up of assets and have differing views about what is fair and what is not. This does not mean that you should sit down and take it but it does mean that you should try to work toward a fair arrangement quickly and without animosity. This saves time, trouble and money.

If you have a house, consider selling it. According to divorce analysts, keeping the house could be one of the biggest financial mistakes a person could make. At the time, they don’t realize the cost of keeping a home running as well as the hidden costs associated with its upkeep and maintenance. When they do realize it, then they get into the process of selling it, paying closing costs, capital gains etc. This could be avoided if the house is sold as a joint asset. Exceptions do apply in this case and some may choose to keep the house, along with the costs, because of emotional attachment to it.

Many couples forget about taxes during a divorce. They neglect to evaluate the true value of retirement assets like pension plans and retirement accounts. Many are unaware that retirement assets are taxable upon withdrawal and may be worth 15 percent less than non-retirement assets. This issue is more relevant for older couples who are getting a divorce.