lundi 25 mars 2019

Tips For Planning Divorce Financing

By Joseph Baker


Separation in marriage can be one of the most trying times in life. The process of marriage annulment calls for financial resources from the couple initiating the process. However, in many of the western nations, lawyers are not allowed to represent clients by getting a portion of the settlement secured in the case. It is for this reason that divorce financing should be top of your priorities.

In most cases, when you hear people discussing issues to do with separation of marriage and finances, they are generally discussing alimony, child support, and property division. However, it is crucial not to overlook one important financial issue relating to meeting expenses during the process. The attorney has to be settled and still pay for related filing costs. This can be a bit hard without ready cash.

Not all divorces are expensive. Some of the super cheap marriage annulments may not even require a lawyer. In most cases, they will cost hundreds of dollars. But when you are looking at a marriage separation with costs running into tens of thousands of dollars, it becomes an expensive process, calling for proper planning of finances. You do not apply for funding to super cheap divorces.

One of the best ways to ensure your separation is less complex is by having an uncontested process. Try and see whether you and your spouse can come to an agreement minus going to trial. This is going to make the separation less expensive than having a contested process. Contested divorces can drag on and result in unmanageable attorney fees. Agree with your spouse on most major issues to save costs.

In situations where uncontested divorces cannot work, it would mean figuring out the next course of action. You need to determine whether using traditional means can finance the process. If not, it would compel you to find other options. The best way would be doing a mix of both traditional and non-traditional means. Below are a few of the options you can consider to finance the annulment.

In most cases, traditional funding of divorces is through cash. Therefore, you need to see whether you have a savings account with easy access to facilitate easy payments of attorney fees and other related costs. You can also consider getting cash from the checking account to take care of joint divorce costs. In most cases, couples are served with restraining orders from depleting any joint assets.

Credit cards are becoming more acceptable as a mode of payment in different industries. Recently, many lawyers are becoming flexible to include credit card payments. This is, however, not the most reliable option for couples. In the first place, it is undeniable that credit cards always have higher interest rates. Furthermore, financial advisers recommend clearing credit debts before filing for marriage annulment.

It is not uncommon to find people funding their divorces using retirement accounts. However, financial experts advise against this plan unless you are sure of making alternative retirement plans when the time comes. Further still, withdrawing money from this account is charged a ten percent penalty as well as regular income tax.




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