When making the decision to divorce, the issue of cost is a primary concern.
Of course, you will have to consider the immediate burden of paying for the divorce, including court fees, as well as long-term expenses involved in dividing a household income, moving and retirement. To minimize the substantial financial impact of your divorce, it is important to protect your rights at the outset. Proper planning with an experienced lawyer minimize the costs through the course of divorce and into the future.
Some people think they can save costs by avoiding hiring a lawyer. This is a mistake. While “expensive” doesn't always mean “better” when it comes to family law representation, a good attorney can help save you a great deal in the end by helping you assert equitable division of assets, fair custody proceedings and reasonable support payments.
The costs and losses of your divorce will vary depending on how long you have been married as well as your assets, debts and income.
Families once comfortably middle-or upper-class could have face hard times after a divorce. One of the most important considerations is whether to keep the family home. Though you may feel like protecting the family home is important to your children, you must also ask yourself whether it is something you and your former spouse can really afford. More specifically, is it a cost one parent can take on alone?
Even when a divorce is agreeable to both parties and both want to move forward amicably, dividing financial responsibilities can be problematic. Untangling property, credit card debts, real estate and other assets that have accrued over time can be more than a little complicated. In addition to making plans to survive the day-to-day, you will also have to make long-term plans for retirement. Here are some tips for minimizing the immediate and long-term costs of divorce.
Set realistic expectations. It is important to look at your budget and the reality of cutting two paychecks into one. Not only will you have to look at your fixed expenses, including a mortgage or car payment, but consider how you will pay for the difference on your own. Many people are stuck paying for things they would never have been able to afford on their own. It may be necessary to cut back and determine what you can reasonably pay for after divorce.
Consider your divorce budget. Keeping the costs of divorce down means working toward solutions as quickly and amicably as possible. The more protracted your dispute, the more costly litigation can be. Remember your immediate and long-term financial goals, but don't make any concessions that can cost you income and assets in the future. Our Birmingham asset protection and divorce attorneys can help you evaluate your budget and work towards the most affordable resolution.
Create a new financial plan. During marriage, it is likely that you and your spouse created a retirement and long-term plan together. Now you will have to reinvent your strategy with a new retirement plan and budget. During divorce, make sure that you protect your rights to retirement assets, savings and pensions. You may also need to consider going back to work or finding another income to compensation for any losses. Remember that tax liabilities will also change after divorce.
If you are seeking a divorce in Birmingham, contact Family Law Attorney Steven Eversole at (866) 831-5292.