Factors To Consider When 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.

When people are talking about marriage annulment and finances, they are typically discussing dividing the property, child support, and alimony. Nonetheless, there is another issue touching on finances that mostly gets overlooked. It is important to figure out how to meet expenses for the attorney, plus filing costs relating to your case. This is particularly when barely making ends meet. Sometimes most of the assets are tied to the annulment process.

It should be noted that not all divorces are alarming in terms of financial requirements. Some people have gone through super cheap divorces that only cost a few hundreds of dollars. Some do not even need lawyers for such a process. It becomes a do it yourself marriage annulment. But in situations where the process costs thousands of dollars, you want to have a financial alternative in advance.

When spouses are informed about what it entails getting to trial, they will try their best to reach an agreement. With an agreement, the process becomes uncontested and is less expensive. But the moment both spouses have contentious issues, the case has a potential of dragging on. The more it drags, the more it will cost in terms of attorney fees. Agreeing on contentious issues will 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.

For the most part, traditional divorce funding is done using cash. In that case, you will have to figure out whether there is a regular savings account where you will access the cash with ease and pay the lawyer or any other costs in the case. Even for those with adequate cash in their checking accounts, by this time they are temporarily restrained from accessing joint assets.

When shopping for most products from online stores, credit cards are among the predominant payment methods. This is even true when buying most consumables. Some attorneys too have joined the list of service providers and professionals accepting credit card payments. High-interest rates are however a drawback to this option. It is also recommended to pay credit debt prior to filing divorce.

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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