Wednesday, February 11, 2015

Divorces Don't Have To Be Expensive: Six Tips To Save Money

One of the main reasons why many people stay in unhappy marriages is because of how cost-prohibitive divorce can be. Remaining in a marriage that makes you miserable can be emotionally crippling. If you want a divorce, don't be afraid of the costs involved. You can reduce your expenses if you follow these tips to save money throughout your divorce proceedings.

Take Your Time Finding An Attorney


Many people end up spending too much money on legal costs because they hire the first attorney they find online or in the phone book. When it comes to choosing a divorce attorney, be sure to take your time and compare costs. You don't want to spend too little money and find yourself with a sub-par attorney, but you also don't want to spend too much on a simply average lawyer. While some couples may avoid getting an attorney to try to save on costs, this a bad a idea. An attorney can help you speed up the process and get a fair outcome for you and any children involved. 

Try To Settle In Mediation


The longer your divorce proceedings, the more you'll spend. If your divorce actually goes to trial, court costs can really start to pile up. If you can settle in mediation and keep the proceedings out of a courtroom, you can save a lot of money.

Close All Joint Accounts As Soon As Possible


If you and your soon-to-be ex share credit or debit accounts, close them immediately. As long as both of your names are on these accounts, you can be held accountable for anything that he or she spends. Telling these creditors that you were in the process of getting a divorce won't get you off the hook. Not taking this critical step can quickly leave in you in unintended debt. Open up a different bank account to continue paying your bills without worrying about your partner spending all of the money. 

Create a Budget and Stick To It


Even if you're behaving smartly, cash will be tight during your divorce process. Create a budget based on your income and expenses and stick to it. Remember that a time will come again that you will be back on your feet and able to live comfortably. During your divorce, however, you can't be a spendthrift. Take a look at your budget and figure out how it will need to change until the divorce is finalized. Many people jump to what things will be like after the divorce, and don't take financial steps during the process to avoid financial problems. 

Don't Take Out Any New Loans or Lines of Credit


Many divorcing individuals will take out loans or open new lines of credit to take the place of the support they used to receive from their spouse's income. However, this is a one-way ticket to bankruptcy down the road. This is a time to monitor your finances carefully, not to assume new debts.

Don't Be Afraid To Sell Assets


Many people develop sentimental attachments to luxuries procured during their marriage. Items like boats and jewelry may have been a breeze to finance when you were in a two-income partnership, but they're extraneous and unnecessary when you're trying to save money during a divorce. There's no shame in selling off luxury items and creature comforts to get a little extra cash.

By following these tips, you can get through your divorce financially. It's important to understand all of the costs to not overspend or go into debt. With the right planning and effort, divorces don't have to be expensive. Informational credit to Kitchen Simeson Belliveau Llp.

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