6 Ways to Manage the Financial Impact of Divorce

While no two divorces are the same, the process can get expensive the longer it plays out. Not only is there the expense of hiring a family law attorney, many of whom bill by the hour, but there are also filing fees, Court costs, and other factors that can turn your finances inside out such as whether or not you go to trial. With so many costs, it makes you wonder if there are realistic ways to manage the financial impact of divorce.

The short answer is yes, provided that you plan ahead of time!

Managing the Financial Impact of Divorce

Talk to your soon-to-be ex about staying out of Court

Litigation can be significantly more expensive and time-consuming than mediation or collaborative divorce.. If you can both agree early on to be civil toward each other and flexible on settlement agreements despite your unique relationship issues, you’ll save time, money, additional stress and conflict, and a slew of additional costs that can deplete your marital assets.
Help your lawyer

No one expects you to be a legal . Your lawyer’s job is to take the wheel and achieve the best possible outcome for your unique case. That said, ask your lawyer what you can do to help. For example, you can gather key evidence, records (calendar entries, phone records, emails, texts), a timeline of events, and financial documentation versus having the lawyer find this information for you. Timelines, in particular, help lawyers quickly and inexpensively understand critical points of each case.
Do your own discovery

One of the best ways to manage the financial impact of divorce is to invest your time in locating and providing as much information and documentation as possible. Doing so saves your attorney time and therefore, your money and gives you peace of mind that you have everything you need right at your fingertips. Examples of relevant paperwork and financial information include bank statements, investment information, tax returns, retirement accounts, real estate deeds, credit card bills, mortgage information, etc.
Monitor joint accounts and finances

Many parties ultimately lose money on the backend of their divorce by not paying attention to their existing financial situation and the current transactions going in and out of their accounts. For example, your spouse could be running up a ton of debt behind your back. You could also be making unnecessary purchases and transactions that deplete your funds. Have a conversation with your lawyer and maintain a clear understanding of your individual and marital assets before and during your divorce.
Don’t use your lawyer as a therapist

Many divorce lawyers charge by the hour. You want to ensure they focus on what they are really good at versus having them split their time as legal professionals and therapists. If you need counseling, seeking a trained professional in this area is better. In many cases, these services are covered by insurance.
Empower yourself with knowledge

The more knowledgeable and informed you are about the legal process, what you can expect, and your role, the easier it will be for you to make logical and more informed decisions faster. As a result, you will have a better chance to avoid unnecessary expenses and manage the financial impact of divorce.