Divorcing can be expensive. Ending a marriage can cost couples significantly, even leading to bankruptcy in certain cases. You may assume going negative on your bank balance is necessary, but that is not true.
It is possible to have an inexpensive divorce as long as you make the right decisions. Here is how to lower the cost of your breakup:
1. Be open to negotiation
If you want to save money, the last thing you want is your split to be a long and nasty. You do not want to be part of an all-out war, because lengthy court battles will drain your emotions and wallet. Learn when to be flexible; divorcing does not need to be about getting every little thing you want.
2. Do not fight over insignificant assets
The process of dividing your property can be stressful and overwhelming. Keep your main concerns to your house, vehicles and retirement accounts. Depending on your unique estate, an attorney can advise you on what else to prioritize. Just make sure you do not end up spending thousands of dollars arguing over something without much value, such as a piece of furniture.
3. Consider tax implications
Think about taxes when making any financial decision. Getting a piece of real estate via property division may seem great, but consider whether you will face capital gains burdens. Additionally, consider who will benefit most from claiming children at tax time.
4. Communicate openly
If you want to keep the cost of your divorce down, keep an open line of communication with your spouse. Being collaborative and honest will go a long way in saving you money and heartache. While you should have a competent lawyer, you do not need to use an attorney every time you simply need to communicate something. Communicate some issues with your spouse one-on-one.