10 Ways to Divorce Without Going Broke
A divorce can be both emotionally and financially upsetting, but if that does happen, it doesn't hurt to prepare for how we can get the best out of the matter. It’s worth planning ahead if you have a divorce on the horizon and a thorough review of its financial implications. In our article, we have summarized the most important aspects that we must keep in mind during divorce.
Divorce is a real threat in every marriage, it is enough to take a look at the data of the CSO, which show that pretty much every third marriage ends in divorce in USA. In addition, most marriages very often fail due to financial reasons, so the issue of division of property can be a common reason for online divorce in Pennsylvania. Not to mention how much the parties are financially burdened by the event, as the division of property acquired during a marriage can involve lengthy court proceedings.
This is why it is very important for those preparing for a divorce to somehow prepare and try to plan their finances for a time when their paths are already parting. Our article also includes some good advice and examples to avoid.
9 + 1 things to look out for
1) Prepare and have a plan. Thorough preparation is very important before a divorce takes place, as a lot can depend on proper planning. In such cases, it is worth contacting an expert, such as a financial advisor or a divorce lawyer, as they can go a long way in helping the marriage end in a proper settlement for both parties (for example, do not leave the mortgage on your neck).
2) Gather important documents. If we want to proceed with the divorce smoothly, be sure to gather the most important documents that came into being during our marriage. Here you can think of tax returns related to common finances, credit agreements, various bank account and securities account agreements, documents of inheritance and so on. You may also want to make a copy of these, as they can greatly help you complete the process quickly.
3) Pay attention to the credit as well. The joint loan has already made many divorces bitter, so it is very important that the matter is clarified between the parties. For example, if we have a home loan, it doesn’t matter at all who stays in the home and who bears the burden of the loan. It should not be forgotten that despite the divorce, if we remain on credit as a debtor (or co-paying guarantor), we still have to make the repayment in the same way if our ex-partner did not pay. So if the apartment will belong to our ex-partner, we will somehow solve - in consultation with the bank - how to get out of the loan.
4) Count all you have. Weigh all the chattels around the house that may come into play at the time of the divorce, be it a precious piece of jewelry, a work of art, a painting, or any other object. It is also worthwhile for the parties to agree on these, as many times they also give rise to unnecessary disputes and thus hinder our agreement.
5) Get what works. As a general rule, the parties may claim half of the property acquired during the marriage in the event of divorce, if there was no marriage contract. If an object we never liked (such as a painting) became our property, we could even benefit from it, as we could even resell it. It may be a more delicate topic if, for example, we have financially helped our partner to obtain some kind of qualification, but the agreement also depends on how angry the situation was between the two parties.
6) Monitor the cost of divorce. Divorce can be very costly, as our consultant and lawyer have to be paid, who can work for a very busy hourly wage. Therefore, keep in mind the benefits available and adjust accordingly how much you devote to a lawyer. Of course, it doesn't matter how long it takes to reach an agreement on a divorce; in the case of a protracted divorce, the procedure can cost much more than a quick agreement.
7) Don’t necessarily stick to the property. We can be very emotionally attached to the shared apartment, but let’s not forget its financial implications either. We may not be able to agree on the apartment, but there are huge costs involved in maintaining the apartment if we live alone. It is possible that the only solution we find is to sell the condominium and then divide the amount remaining after repaying any loan into two parts.
8) Let’s not forget about common savings. It can easily happen that our former couple is a beneficiary of either a home savings or life insurance. In this case, it’s important to review every single contract, be it a securities or deposit account, as we don’t necessarily want our ex to still have control over the money.
9) Last but not least, let's not forget that after the divorce the child has to be taken care of by the parent, i.e. child support can also significantly burden our monthly salary after the divorce. In general, we can say that the amount of this is usually 15-25% of the income per child, but in total it can reach 50%.
+1) The marriage contract is not from the devil. When we get married, quite naturally, we are reluctant to think about what will happen at the time of the divorce. But we could protect ourselves from a lot of annoyance if we get a marriage contract. It is worth asking the lawyer for advice on this in good time, because the experience is that whatever it is, everyone is already looking at their own interests when they divorce.