Solution to Getting a Divorce in a Recession

Divorces are a financial strain on your family because they divide you and your spouse’s cumulative assets (lawyer’s fees aside). In this economy, where assets are quickly turning into debts, it is critical to understand the financial consequences of a divorce and how to make the most out of its aftermath. A divorce divides one family unit into two separate units. When one spouse moves out, there will be one more mortgage or rental payment to make. Having 2 separate families also means twice the living expenses, including, but not limited to: health insurance, car payments, and all the children’s needs in the separate households. The first and most important step you can take to save money in a divorce is to consider divorce mediationto resolve your differences, rather than divorce litigation. Litigation usually requires extravagant retainers ranging from $5,000 to $15,000, on top of hours billed for gathering financial documents, your correspondences with the lawyer, discovery, motions, trial preparation, and trial. If you are not prepared to pay tens of thousands of dollars for a divorce, mediation can achieve a similar, if not better, result than a contested divorce, at a small fraction of the price. At OnlineDivorceMediation.Com, for example, the average fee is $999.00 per spouse. The cost covers 3 hours of mediation time and the preparation of the divorce filing. The mediators at OnlineDivorceMediation.com will cover all issues which would have also been contested in court. In a courtroom, spouses will typically use each other’s assets against the other as leverage for more alimony and/or child support. If your properties have decreased in value or are being foreclosed due to the recession, you will be fighting to divide the debt, rather than the equity. If this is the case, using mediation to work together and pay off the mortgages or loans might benefit both spouses in the long run. In the unstable economy, where your stocks, 401(k), savings, and assets are quickly eroding, litigation is actually a more unpredictable barometer of what you will receive from a judgment than mediation. Furthermore, the money used to fight for a more “equitable division” of assets can be used for your children instead. When you litigate, you are risking the possibility of an unfavorable judgment which will engender future motions and trials in attempting to circumvent the judgment. On the other hand, mediation is focused on a solution which will encompass future cooperation.