Let’s face it, divorce is not exactly the most exhilarating topic to discuss at a dinner party. Unless of course, you’re munching on freedom fries and planning an Independence Day from your partner. However, there’s one thing that’s even less fun than divorce itself: the cost.
Before your savings start vanishing faster than that one friend when the bill appears, here are some ways to keep your divorce budget in check. If you’re savvy about it, you might even have some change left for that post-divorce ‘treat-yo-self’ spa day or a trip to Vegas (to celebrate your new singledom, of course).
- Collaborative Divorce
If you haven’t heard about this yet, buckle up. Collaborative divorce is basically the unicorn of separations. Instead of heading straight for a courtroom showdown, both partners agree to work things out with their respective attorneys in a peaceful, non-confrontational setting. Think of it as a ‘group project,’ but instead of a school grade, you’re working on a future of amicable co-existence. The best part? It can save you a ton of money in the long run.
- Mediation
If the idea of collaborating sounds like a distant dream, mediation might be the way to go. A neutral third party (the mediator) helps both partners come to an agreement. It’s kind of like couples therapy, but with more legal terms and fewer emotions.
- DIY Divorce
No, I don’t mean grabbing a saw and splitting everything in half (although that’d be quite the spectacle!). Some couples opt for handling the paperwork and logistics themselves. However, tread lightly; DIY divorces are best for couples who have minimal assets and no kids. If you have a house, a dog, two cats, and three goldfish, you might want some professional help sorting it all out.
- Investments – Stocks, Shares, and the Like
So, let’s say you and your soon-to-be-ex have some stocks and shares. First things first: get an accurate valuation. Stock prices change more frequently than most people’s moods during a divorce, so be sure you know the exact worth on the date of separation. And here’s the kicker – try to come to an agreement about how to divide these without selling them off. Why? Because selling could lead to capital gains tax, which means Uncle Sam gets a cut. And nobody, especially not during a divorce, wants that.
- Shared Professional Fees
Some costs can’t be avoided. But sharing them? That’s a game-changer. Sometimes both partners can use the same professional, like a real estate appraiser or financial planner, to reduce costs. Think of it as the BOGO (buy one, get one) sale of the divorce world.
- Know What’s Worth Fighting For
Some battles are just not worth the fight. Do you really want to spend $1,000 in attorney fees over a $100 coffee table? Sometimes, letting go can save not just money, but sanity too.
- Be Honest
Last, but not least, as your grandma probably told you, honesty is the best policy. Being straightforward about your assets means less detective work and fewer billable hours for attorneys.
As you can see, you really don’t have to bankrupt yourself to get a decent divorce!