If you’re thinking about a divorce, chances are you’re nervous about entering uncharted territory. You might be wondering how the kids will handle it, what it will be like to be on your own, and, ultimately, how much the divorce will cost.
It’s common to worry about the unknown and be overwhelmed by what’s ahead. And when it comes to the cost of your divorce, there are several factors that you will need to take into consideration.
What you need to know
First, let’s take a look at what might contribute to a higher cost:
- Substantial or complicated assets may contribute to a higher cost.
- If you own a small business and take liberties with deducting your personal expenses as business expenses on your taxes your divorce cost could be higher.
- Significant separate property claims between you and your spouse could have an impact.
- Unproductive and disrespectful discussions with your spouse can also drive the cost up.
Something else to consider
Going into divorce proceedings where the two parties have a strong dislike for each other can also be an issue. Unfortunately, the legal system is structured in such a way that these two individuals are often more angry at the end of the process than they were at the outset.
Who you and your spouse retain as legal counsel can also be a factor; things such as hourly rate and if he or she is inclined to encourage a settlement can affect the cost. Hiring the most expensive attorney in town known for being a shark will increase how much you spend.
You do have options
Cross Roads Divorce Advisors encourages clients to think of their potential divorce cost as a continuum from highest to lowest rather than absolute dollar terms.
Ranked below are your process options ranked highest to lowest in cost:
- Litigation
- Adversarial with Settlement
- Collaborative Divorce
- Mediation
- Pro-Per
It’s also important to keep in mind that a failed mediation can easily land you in litigation and cost even more. Make sure you understand mediation before opting in.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
Lou Falvo is a Certified Divorce Financial Analyst™ who assists clients by evaluating the tax and financial aspects of divorce. Lou is dedicated to reducing the burden of each client by thoroughly examining the financial elements of the client’s divorce, with a keen focus on what is in his or her best interests. Contact Lou at Cross Roads Divorce Advisors to find out how he can assist you with your divorce proceedings at lfalvo@crossroadsdivorce.com or (585) 542-2382.