How to Save Your Money in a Divorce

Ditching legal services is the easiest way to save your money in a divorce. Not all couples can do it, though, for obvious reasons. Some have too many marital assets to split. Others cannot agree on the terms of child custody and parental rights. However, if spouses find it in themselves to agree on all the divorce-related issues, they can expect to cut the cost of divorce manifold.

Save Money on Lawyers

Divorcing people fork over thousands of dollars in legal fees and expert fees. The bulk of expenses goes to divorce attorneys that each spouse has to hire to represent them in court. But is this mandatory? If a couple gets entangled in a bitter court battle, the answer is self-evident. But if it is a family of modest means with not that much marital property to split who can agree on child custody and support payments, can they save thousands on their divorce? In fact, yes, they can.

For those who don’t want to deal with the paperwork and are ready to pay for it, divorce attorneys have flat-fee package proposals. A flat-fee divorce proposal is available only if a couple qualifies for a no-fault issue-free uncontested divorce. Depending on the state, a flat-fee complete divorce package with or without children will cost you not less than $400 (in Virginia plus court filing fees) and well into the $1,500 to $2,500 bracket (in Florida, including filing fees).

However, if you and your spouse agree on all the terms, you only need to pay an attorney to complete and file the divorce documents. What if you fill out the paperwork and file for divorce without an attorney? All courts have self-help centers and do-it-yourself tutorials. If neither you nor your spouse is not up to the task of filling out the divorce forms or are worried about doing it correctly, use online divorce documents preparation services and prepare an application for divorce online. Utilizing an internet divorce service, all you’ll have left to do is file the divorce papers with the court’s clerk.

Save Money on Filing Fees

Filing for divorce can be pretty expensive. In California, filing the divorce petition will cost the petitioner $435 plus the same amount for the respondent to file a response. However, even a filing fee as low as $70 in Wyoming can be difficult for low-income households to afford. If you cannot afford to pay court fees, file a fee waiver request and attach food stamps, bank account statements, or disability payments. Whatever financial proof you provide, the judge will review it and approve a fee waiver if your financial standing is not substantial.

How to Save Money if You Cannot Agree

As we already discussed, hiring a lawyer for each spouse is the most expensive route in a divorce. What should you do then if you and your spouse cannot agree on some, or all, issues of your divorce?

First, you can try mediation. It is a very effective alternative that is much cheaper than legal representation in court. Some states order mandatory mediation in contested divorce cases. Other states provide free mediation to low-income families. Even if you pay full price, an experienced mediator is able to assist a couple to work through their differences within a few sessions.

Second, pro bono attorneys and Legal Aid can be available in your state. Your state’s legal aid service is usually provided for extreme cases such as abuse and violence. However, consult your local legal aid office or a local bar association and find out their conditions for working pro bono.

DIY Divorce as the Ultimate Money Saver

Using Internet divorce services helps couples apply for divorce quickly and without worry. How does using divorce companies help spouses save their time and money?

First, the web divorce companies ask petitioning spouses about grounds for divorce and residency requirements. If a couple fails to qualify, the system won’t continue with the paperwork preparation process.

Second, web divorce companies provide state-specific divorce forms and filing instructions so petitioning spouses can be confident that everything is done correctly.

Finally, most web divorce companies complete the forms for the spouses by using the details from a questionnaire they fill out on the website. Thus, you get your completed, court-ready divorce papers at a very affordable price. Now, just take one more step and start your divorce process.

Pick your Battles

Before you see ways to make your divorce less expensive, learn your state’s main provisions on family law and get a general understanding of the divorce proceedings.

Some states allow DIY divorces only if divorcing couples sort out all issues before filing for divorce. Other states have mandatory waiting periods when spouses can file the rest of the paperwork and memorialize their marital settlement agreement.

Overall, keep in mind the following recommendations.

• Do the early negotiating yourselves. You can divide the pots and pans, CD collection, and other household items on your own. Remember that if you start fighting over a rug, it’s all about sealed-off emotions. Sit down and talk. You both are interested in saving money.

• Appraise your stuff by yourself. The cost of your divorce will go up if you hire professional appraisers to evaluate your marital property. Even if you feel you absolutely must have a paid appraisal for the home, agree with your spouse about cars, boats, and other less valuable stuff.

• Go for equal divide. When you’re dividing up retirement accounts, an inexpensive solution is to split them equally, such as “each keeps their own retirement account.” If you feel that it is unfair, make an equalizing exchange: for example, one spouse keeps their retirement fund while the other can keep the house. Hiring a financial advisor to draft Qualified Domestic Relations Orders (QDROs) is the most expensive option.

• Avoid sacrificing long-term gains for short-term wins. Especially if you have children together, it makes little sense to fight over things that will negatively impact your roles as parents and your long-term financial security. Be accommodating about property division and look for mutually beneficial solutions. For example, given the US tax laws, some ex-spouses find it useful to file for divorce after filing a joint tax return as it is cheaper.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes​