How To Save Money When You Get Divorced?

Answer 1

Divorce has financial implications as well as emotional implications. If both spouses were working before the divorce, each spouse will find himself with only half the income he is used to because the other spouse is no longer contributing to the family unit. In addition, spouses may have large legal bills as a result of the divorce and one spouse may have to pay alimony or child support to the other spouse.

Avoiding Legal Bills

The best way to save money during your divorce is to get the divorce over with as quickly as possible. Many states offer "no-contest" divorces. In this type of divorce, you and your spouse agree to the terms of the divorce ahead of time and fill out paperwork to indicate that you both agree to the divorce and list its terms. No-contest divorces are the cheapest way to go because there is no court case; you just have to pay the filing fees for the paperwork. If you and your spouse can't agree on the terms, or if your state doesn't offer no-contest divorce for people in your situation, consider mediation. In mediation, a neutral third party, often assigned by the court, sits down with both you and your spouse. The mediator listens to both sides of the conflict and helps you come to an agreement. This is usually less costly than going through an entire divorce proceeding in the court.

Alimony and Child Support

Courts calculate alimony by examining both spouses' income. Usually only the lower-paid spouse is entitled to alimony, as it would defeat the purpose of ordering it for both spouses to pay alimony to each other. Courts may assign alimony on a temporary or permanent basis. Some courts assign alimony for only a limited period of time to allow the lower-paid spouse to adjust his lifestyle to his new income level. Child support is always paid to the spouse who has primary custody of the children or, in joint custody arrangements, spends more nights taking care of the children. Courts use a state-determined formula to determine how much child support to order.

What to Do

Your best bet is to begin adjusting your lifestyle as soon as you or your spouse files for divorce. Assume you only have your own income rather than depending on your spouse for additional income, as you will be living on this reduced income after divorce. Save as much as you can to help you adjust to your post-divorce finances and to pay any legal bills or obligations that result from the divorce.