Divorce is physically, mentally, and emotionally exhausting experience. At the same time, it can be a financial nightmare even when your finances are in good standing. For those looking at divorce now, however, they’re also facing a down economy.
Recent studies by the National Marriage Project show that unhappy couples are more likely to postpone their separation due to the recession. With upside-down mortgages and credit in a bind, it makes sense. However, couples can manage divorce in a down economy with these helpful tips.
Protect Your Assets
Whenever possible, try to work with your ex-partner to divvy up your assets. If that’s impossible, everything you own may be sold or given to your partner at a judge’s discretion. This is all taken care of with a prenup, but it’s a little late in the game for those documents.
Instead, talk with your former lover and draw up a post-marital agreement. This document functions similarly to a prenup, listing various material assets as property for each spouse. While this isn’t always an option in heated separations, it’s worth attempting to save both of you’re a headache.
Selling Your Home
With the economy in a downward spiral, most homes are now undervalued. That means neither of you should expect to make what the home is actually worth when selling. If you rent, consider yourself lucky. If not, here are a couple options to consider.
First, you could choose to keep the home until its value increases. In the meantime, consider listing the house on Airbnb or renting it out. Second, one partner could move out until selling the home makes more sense.
Finally, parents might choose to share time in the home with their children. This requires former partners to switch between two dwellings, however. You might want to speak with an Orange Country family lawyer to ensure this process runs smoothly.
With the recession, even the upper levels of middle-class are affected. That means most people don’t have a lot of money lying around for something like a divorce. If a legal battle in the court isn’t financially feasible, then you do have other options.
One of the most cost-effective routes is mediation, effectively bringing down fees to one-third of the cost most of the time. This also allows both partners to make their own decisions instead of letting a judge decide for them.
However, mediation requires former lovers to work together. Without cooperation, you’ll end up paying for mediation on top of court costs. In this down economy, it makes the most sense to put differences aside and ensure both parties come out financially stable.
The pandemic has caused millions of Americans to become unemployed, which makes children in the mix of a divorce a more complicated subject. You might find yourself supporting two households, which can but an enormous strain on your finances.
The best option here is to speak with legal representation, like this Bloomington child custody lawyer, and work to have the children stay with parent earning an income. Another option is the children and a spouse moving in with relatives, then budgeting accordingly.