You probably know how expensive a divorce could be, but it really doesn’t have to cost everything you own or leave you bankrupt. You could get a divorce at the lowest cost possible if you make rational decisions and don’t rush the process. The ideal way to go through your divorce is to plan well.
To start off on the right path, follow these tips:
Consider Alternative Dispute Resolution, Such as Mediation
Mediation enables you and your spouse to control how you want your divorce to go. This is, of course, considering that both of you are willing to negotiate and communicate. It’s a voluntary process that won’t affect court proceedings in the event that you and your spouse can’t reach a fair agreement, explains one of the top mediators and divorce lawyers in Suffolk County, NY.
Keep Spending to a Minimum
Unless you’re relatively “wealthy”, you really need to plan your expenses. This is especially true if you have kids since you’ll have less money to spend during the divorce process, and possibly after. You might not be financially capable of maintaining your present lifestyle, so start saving up.
If you have an amicable and honest relationship with your soon-to-be-ex-spouse, then don’t be afraid to communicate. This goes for your divorce lawyer as well because failing to communicate all your issues would cause your lawyer to do more work, and in turn, cost you more money.
Close All Joint Accounts
Joint finances could spell trouble in case your ex-spouse becomes disabled, files for bankruptcy, or default on a loan in the future. Minimize or close joint accounts prior to your divorce before it’s too late. If you’re not able to close a joint account, see if you could remove your name or your spouse’s name from it instead.
Don’t Forget Tax Implications
Consider the potential cost of taxes for every financial decision you need to make. For example, how much would the capital gains be on real estate and their costs during tax time? Check with your lawyer or research online to learn how your divorce could affect you during the tax season.
Lastly, be prepared. Make sure you have all the details relevant to every little thing that could impact your financial future. List all your assets, investment funds, retirement accounts, and bank statements. Do this while planning for your divorce and give copies of the documents to your lawyer. Plan right and you reduce the risk of your divorce costs skyrocketing.