The Financial Implications Divorce May Cause

The average cost of a divorce is usually between $15,000-$20,000.

However, there are lots of different factors that can quickly make that number climb even higher.

We know that understand divorce and finances adds even more stress to an already emotional time. However, especially if you’re considering getting a divorce, it’s essential to understand the financial implications and potential costs.

In this post, we’ll take a look at some of the costs you might be expected to cover when it comes to getting your divorce.

Whether you decide to stay together and work things out, or if you join the 40-50% of married couples who end up getting divorced, it’s important to be prepared.

The Type Of Divorce

Not all divorces will impact your bank account in the same way — starting with the type of divorce that you and your former spouse elect to have.

If you choose an uncontested divorce, the process will be much less expensive and will be completed relatively quickly. Once you and your former spouse have made it through a mandatory waiting period, the divorce is finalized.

Uncontested divorces are more amicable in nature, and as a result, likely need far less help from lawyers and mediation experts. You and your partner create the terms of your divorce on your own.

Usually, an uncontested divorce costs under $2,000, though it may be more expensive in certain states.

However, a contested divorce will likely cost you more, because you and your former spouse can’t reach an amicable agreement on your own. This may be due to issues like alimony, child custody, or it may be because one partner is not ready to get a divorce.

In a nutshell, the type of divorce you end up choosing is the foundation of your divorce and finances.

Legal Fees

When it comes to divorce and finances, the legal fees you’ll likely need to pay will play a major role.

The cost of your legal fees when it comes to your divorce will vary greatly depending on the length of your divorce, as well as the terms that you and your former spouse agree to reach.

Your legal fees can either be paid through an hourly rate, or you can choose to keep a lawyer on retainer throughout the divorce process.

Keep in mind that, in addition to legal fees, you’ll also need to pay a filing fee, which will vary from state to state. Some divorce lawyers may include the filing fee in their billing statements, while others will make it a separate charge.

Child Custody

When it comes to divorce and finances, nothing can complicate things quite like the battle for child custody.

In addition to the financial side of things, for many couples, this is also the most emotional part of the divorce proceedings.

In a perfect world, you and your former spouse would be able to come to an amicable agreement regarding who gets to see your child when, as well as who is awarded primary custody, if needed.

However, we all know that this is rarely how things actually work.

If you opt for a contested divorce, then you’ll likely need to go through a child custody evaluation. A psychologist will evaluate you and your spouse to determine the best fit for the child — and will speak to your child about their feelings as well.

The cost of this evaluation can vary, and will depend on whether you choose to work with a private psychologist or one provided by your state.

Once that evaluation has been completed, you and your divorce attorney will need to start drawing up an agreement for child support payments. Usually, the parent who spends the least amount of time with the child will need to pay the highest amount of child support.

Of course, things like your net worth, your job, and much more can also influence the ultimate cost of your child support payments.

The Cost Of Alimony

Another important part of understanding divorce and finances?

Alimony payments, also referred to as spousal support.

Particularly if one partner makes significantly more than the other, you can expect the partner making less to demand alimony payments. Of course, this process can also impact the overall cost of your legal fees, as this is another thing that can get messy throughout the proceedings.

You’ll need to pay a specific amount of money to your spouse for a specific amount of time if they’ve requested alimony from you.

If that amount can’t be amicably agreed on by both parties, the court will take a look at your property, health insurance, financial history, banks accounts, tax returns, and much more to try and determine an appropriate amount.

If you believe that your spouse will request alimony payments, you should meet with a divorce attorney as soon as possible to start discussing your options.

Divorce And Finances: Wrapping Things Up

We hope that this post has cleared up at least some of the confusion surrounding divorce and finances.

The overall amount you’ll end up paying will be influenced by many factors, including alimony, child custody and support, legal fees, and the overall length and nature of your divorce.

We know that, above all, you want to come out with your head above water when it comes to your finances.

We can help.

Spend some time on our website to learn more about how we can help you get through your divorce in Texas. Then, reach out to us to schedule an initial consultation.