People often talk about divorce in broad, sweeping terms. They may describe it as stressful and unpredictable. They may also assert that people who divorce tend to experience significant financial setbacks. After all, divorce is a relatively costly process.
Spouses have to pay for legal representation, and they may also have court costs to cover. Divorce proceedings typically force people to divide their property. In some cases, one spouse may have to provide ongoing financial support because of parenting arrangements or financial responsibility for a lower-earning spouse.
Particularly when people rush through the process, divorce has the potential to cause lasting financial setbacks. Thankfully, it is possible for divorcing spouses to approach the process in a manner that prioritizes their long-term financial stability.
How can individuals protect themselves from financial issues when they divorce?
By preparing carefully
Rushing through the divorce process may lead to unfair arrangements. Spouses may need to go over household records carefully. Some people can preserve certain resources as separate property. Assets that they owned before marriage and property that they inherited may not be subject to division when they divorce. Others may be able to exclude certain financial obligations from the pool of marital debts. Financial obligations taken on prior to marriage or without the knowledge of a spouse may remain the responsibility of the party who borrowed the funds.
Spouses may need support as they review financial records for signs of misconduct and value their assets. Proper preparation can help people preserve some of their resources and avoid responsibility for debts that they should not have to pay.
By working toward a settlement
Divorce proceedings typically become more costly as conflict levels increase. When spouses must go to family court to settle disagreements about parenting matters or financial issues, what they pay for the divorce increases significantly. If spouses can find ways to compromise with one another, they can limit their expenses and preserve resources for the future. Even if they have to pay a mediator or a parenting coordinator for their services, doing so may ultimately be more cost-effective than litigating disagreements.
By learning about the law
People who approach divorce with unrealistic expectations may waste energy and money fighting for unattainable terms. They may also make concessions that put them at a financial disadvantage. Spouses who learn the basic rules that apply to property division, the allocation of parental responsibilities and support orders can focus on realistic terms and can protect themselves from unfair proposals.
Frequently, those hoping to minimize the financial impact of divorce need to secure the help of a professional familiar with state law. Focusing on long-term financial stability throughout the divorce process may lead to better terms and a happier, more comfortable life in the future.
