By Kaleen Harris
•
24 Mar, 2023
Divorce is often seen as a way out of an unhappy or broken marriage, but it can come at an immense financial cost that can have long-term implications on the life of those involved. Divorcees who are weighed down financially by divorce may struggle to provide for their families, purchase a home, pursue higher education, and more; in some cases, they find themselves worse off than if they had stayed together. Finances are a critical element to consider when contemplating divorce, so it is best to be aware of what finances and costs may come with the process. Preparation is key to ensure that you understand the financial consequences associated with this major life decision. Understanding the financial costs of divorce Divorce can be a complicated and expensive process, making it all the more important to understand the financial costs. Working with a divorce lawyer or another divorce professional can help parties understand the costs of divorce upfront, including filing fees, court costs, alimony, child support, and sometimes the cost of divided assets. Knowing these costs can help parties proactively plan budgets both during divorce proceedings and post-divorce. It is wise to hire a divorce professional who can provide guidance that may even save money in the long run. A Forbes article reports, "The median cost of a divorce in the U.S. is about $7,000, but this is not a one-size-fits-all price tag. The more complicated contested divorces—ones with disagreements around issues such as property distribution or child custody—can become significantly more expensive, often running up tabs well over $100,000." Dividing marital assets upon divorce When it comes to divorce proceedings, dividing marital assets can be a major source of contention. Depending on the state, marital assets can range from real estate and retirement benefits to inherited property. With so much at stake, attorneys' familiarity with case law is key in ensuring that both parties receive a fair and equitable portion of the marital estate. This change alters the financial status of both parties, as their previous unit has now become individual entities Spousal Payments Spousal payments are a common payment obligation often part of a divorce settlement. Unfortunately, such payments can have costly implications for the spouse obligated to pay. Depending on the terms of the court order or settlement agreement, spousal payments may last for several years and include interest if they are overdue. Additionally, if spousal payments are missed entirely, repayment will become due in full and is usually coupled with other penalties determined by the court order or settlement agreement. Therefore, making timely spousal payments is essential to avoid potential massive costs later down the line. A divorce lawyer in Cedar Park, TX can help you understand the terms of your spousal payment obligation and provide advice on how to manage those payments over time. Impact of custody arrangements on finances Divorce lawyers in Cedar Park, TX typically recommend that parents consider the financial impact of their custody agreement when determining what arrangement is best for the family. Splitting assets and providing support can become more complicated with young children, and it is important to keep their current and future needs in mind. If one spouse will be primarily caring for the children, then the other may need to make regular child support payments. If one parent is covering health insurance premiums and deductibles for doctor visits, they should expect contributions from the other parent to cover these costs. With careful planning and consideration, parents can structure a custody agreement that ensures the well-being of their children while also protecting all parties involved from financial hardship. When deciding whether to divorce or not, it is important to be mindful and aware of the costs and financial implications associated with divorce. Working with a knowledgeable divorce lawyer in Cedar Park, Texas can help in understanding these costs and achieving an equitable resolution. Taking legal action early on can also help to avoid future costly surprises during and after the process. Divorce is no small matter, and it is important to protect yourself, your children, and your assets throughout the process. Preparing and planning are essential to avoid completely upending one's life. With guidance from a trusted Cedar Park, TX divorce lawyer, like the Harris & McKeown Law Firm , you can ensure that all bases are covered when making decisions about dissolving a marriage. By understanding the financial costs of divorce in advance, both parties can plan accordingly while protecting their interests. A divorce lawyer can provide advice on the best course of action and represent you in court if necessary to ensure a fair resolution. Ultimately, your goal should be to leave the process as financially secure as possible. Harris & McKeown Law Firm has extensive experience handling divorce cases for individuals throughout Cedar Park and the surrounding areas. Contact us today for an initial consultation and to have a team behind you as you navigate this transition to a new life.