What can I do to reduce my divorce costs?

What can I do to reduce m…
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There are a number of ways a client can help reduce the overall cost of a divorce. The first and foremost way is for the client to be as reasonable and willing to make appropriate compromises as possible. The divorce can be relatively easy, quick, and inexpensive if both spouses follow certain rules. These include:

  • Minimize emotional reactions
  • Respect proper boundaries
  • Treat each other with civility and dignity, and
  • Set realistic expectations for each other and for the process.

If these rules are followed, then the clients won’t need their lawyers nearly as much as they otherwise might.

Unfortunately, following the rules is sometimes impossible for a number of reasons—including that it depends on both parties acting properly.

When one side is being less than reasonable, there still are many ways for a spouse to reduce the costs of divorce. One good way is to be meticulously organized. Divorces are intensely information dependent. The more a party can gather, sort, and organize the information the better. This extends to financial information about assets and debts, income and expenses.

In a typical case, information to gather about assets can include:

  • Account statements for banks, retirement plans, and investments
  • Deeds for motor vehicles, and
  • The paperwork related to any purchase or sale of real estate.

Debt information can include:

  • Credit card statements
  • Mortgage and car loan payment documents, and
  • Any personal or bank loans.

Income related information usually includes things such as

  • Paystubs,
  • Tax returns and related forms,
  • Employment contracts and job offer letters
  • Paperwork related to any side job or hobby income

Information about typical expenses generally includes billing statements for mortgage or car loan accounts, utilities, and other recurring expenses and budget items. If the family uses Quicken or Quickbooks or a similar accounting software, this can make the budget information gathering process much simpler.

And of course, many cases are anything but typical. This might be because of multiple properties, ownership of business or partnership interests, foreign located assets, or exotic assets or income such as intellectual property or royalties.

Lawyers typically want to see as complete a financial record as possible for at least three years, and sometimes longer. For some transactions, such as house purchase or sales, or significant inheritance, gifts, or loans from family, the attorney may want to see records from throughout the marriage.

The information gathering also extends to personal facts, such as medical, legal, educational, travel, and communication history, especially if it concerns something significant or related to the marriage or divorce.

A second way that clients can save money is to be clear and focused on their outcome goals and priorities. If the client and attorney communicate effectively and work together on the same goals and priorities, they can avoid a lot of wasted time, effort and attorney’s fees.

A third way clients can save money is by being mindful of how to use an attorney. Attorneys are trained to respond to legal issues. They help clients understand their options, and the consequences of various decisions. They analyze the possibility and risk of different outcomes in court. And they have training and experience in presenting arguments to judges. They generally are not trained in therapy techniques, or how to address a client’s personal medical, financial, or emotional issues. For these, it is important that the client get appropriate professional help. This will allow the client to make the best possible decisions in their legal case.

Last, clients who see an attorney early in the process and follow fitting advice usually will spend less on their divorce. It is always easier to figure out how to do something right the first time than to have to fix it and start over after bad decisions.