Divorce Financing Should Be The Very Last Resort

By Sandra Hamilton


Divorces are no longer seen as disgraceful. They are, in fact, rather common and single parent households have become commonplace. Divorcing is hardly ever a civilized, sterile affair. It involves a lot of stress and many divorcing couples find the process extremely painful. Unfortunately, divorces can cost a lot of money and many couples simply do not have liquid funds sufficient to cover this cost. In such cases, they may have to look at alternative sources of finance, such as divorce financing.

Divorces often leave both partners in precarious financial positions. The distribution and liquidation of their assets will cost money. If there are children involved they may need costly psychological counselling. Of course, the legal costs must also be paid. These costs can easily become astronomically high. Lawyers charge for every second that they spend on a case and much more for court appearances.

If divorcing couples can manage to be reasonable, they will realized that there is much that they can do to decrease the cost of the process. The legal fee can be substantially lower, for example, if only one lawyer is hired. The cost can be cut even further by privately agreeing on important issues instead of spending time in the office of a lawyer fighting about small matters.

Contested divorces are often spectacularly expensive because the couple simply cannot come to agreement on important issues. In such cases expert witnesses, which are very expensive, may be needed. The case can take up a lot of tie in the court and each day in court result in very steep legal costs. The best route is to agree to an uncontested divorce. Only one lawyer needs to be paid and he will not spend a lot of time on the case.

Couples that find that they simply do not have the money to pay for their divorces may have to consider a special loan designed for such circumstances. Their are many companies that provide such loans quickly. The drawback is that these loans are expensive and they have very strict conditions and terms. Such a loan can easily dump the divorcing couple into crippling debt.

Many divorces become more complicated because the two partners cannot agree on the way in which their assets should be shared. If there is no money to pay for the process, it may be best to sell an asset rather than apply for a loan. Selling a asset does not involve protracted ongoing payments and high interest fees. It is often also possible to quickly liquidate investments and even pension funds in order to raise cash.

Many newly married couples purchase special insurance policies that specifically make provision for the cost of legal services in the future. To many this may sound like callous planning for a certain future divorce. This is not necessarily the case, because such policies can also be important if the couple encounter other types of legal problems. It may be a good idea to approach a financial advisor in this regard.

Getting divorced can indeed be expensive, but it need not cost a fortune. The secret lies in adopting a reasonable attitude, to communicate with each other and to make as many decisions in private as is possible. This will cut the time spend in the presence of a professional and will subsequently lower the final cost.




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