For most couples thinking about getting a divorce, finding out just how much is involved can be quite heartbreaking. It’s bad enough the couple has to go through the emotional wringer of breaking up. However, having to also deal with the financial aspect? That is something else entirely.
It’s not surprising to see some couples who were previously hell-bent on getting a divorce suddenly taken aback by just how much is required to settle the case and reach some agreement – not that it does anything to really deter them from moving forward.
So, if you’ll be getting one, you had better be aware of the implications and costs involved.
Legal Advice and Representation Fees
This always takes a significant part of the divorce expenses. It is further worsened when both parties only communicate via their attorneys. Even in a seemingly “mutually beneficial” divorce settlement, the lawyers involved in brokering the deal will charge their fees.
Moreover, subsequent legal consultation by the “non-resource” party could result in payment by the “resource” party.
Multiple Rents and Mortgages
While in many homes both couples are working, the reality is every family often has a resource and non-resource individual. This means in spite of both partners working, one spouse is still considered the breadwinner and the other the dependent.
Moving out of a shared home is bound to put much financial strain on both individuals. Since you’ll no longer be under one roof, splitting up means multiple rents, mortgages if the other party wants a new house, electric bills, gas bills, food expenses and other expenses. Sometimes these costs are all placed on the same income.
So, if the family was able to get by on $60,000 a year, getting a divorce is bound to lead to increased costs seeing as there is a need for a couple to split up. Moreover, in the event there are kids involved, the party moving out will always have to look for ways to pony up even more money for his or her living expenses.
Child Support and Alimony
The party that’s perceived as less financially stable gets some alimony. Technically the alimony, also called spousal support, is meant to be a reprieve to help the other party survive until they can stand on their feet and support themselves.
In practice, however, it is possible for the “wealthier” party to keep paying alimony for years and years; sometimes even until the other party’s death. For child support, this is a given in every divorce. The court often requires the financially stable party to pay for the upkeep of their kids.
Usually, this goes on for as long as is necessary, which could last for at least 15 years given the current state of the economy. Bottom line, the judge will often decide in favor of the non-resource person particularly if the reason for the divorce is infidelity or various types of abuse.
Asset Division
If both parties have shared or joint investments or savings, a divorce is bound to impact that. Unless both parties are able to work with each other to grow the investment, most times, one party has to either forfeit a sizable part of the investment or have it split right down the middle.
For instance, if a couple jointly owns a successful company, chances are one will either need to divest his or her part of the business while the other party will either buy them out or allow them sell to an outsider. The point is there will always be some asset division in a divorce case.
So, if after reading all these, you still decide to move ahead with the divorce or fail to seek alternative means of resolving your differences with your spouse, just know it’s going to cost you.
