When spouses decide to legally separate, there are a lot of decisions to make. Even the most amicable divorces create tension and stress. If one of the partners is at a financial disadvantage during the ending of the marriage, he or she will face additional problems. Some people actually stay in bad marriages because they don't think they can afford to hire an attorney and legally dissolve the union. There some creative ways to finance divorce however, that they may not have thought of.
These same experts also caution that there are some things that should be avoided. One of those things is trying to handle all the details involved in even simple divorces yourself. This is not really something you can do on your own. You could end up with a much smaller settlement if you don't have legal representation. Clients are expected to pay their lawyers however at the time they render services. Lawyers will probably not be willing to wait on your settlement to become finalized before they are paid.
If you have your own checking and savings account, this is a good place to start figuring out how to pay for the process. Depending on your age, you could also borrow against your company financial savings plan. Taking funds out of an IRA has tax consequences you must consider.
When you have assets that are not held in common with your spouse, you could try to put them up as collateral for a bank loan. You might also discuss the possibility of borrowing against a future settlement.
If you have family that is in a position to help, and is willing to do so, you could get the money necessary from that source. A lot of times family money is given as a gift with no expectation of return, but this can cause problems down the road. It is usually a good idea to treat any such loan as a business transaction with repayment papers drawn up and signed. This way there are no misunderstandings, and everyone knows what the expectations are.
Putting a certain portion of the expense on a credit card can be an option for some. The credit limit on most people's cards is too low to be of much help, but when you are someone with a large line of credit, you might consider it. Charging for a short period of time, until a loan is finalized for instance, could be helpful. Interest and late fees could become a major problem if you find yourself unable to make the minimum payments though.
Taking out a loan against your home might be a possibility unless the property is owned jointly. If you've got enough equity, you could receive a substantial amount that would be paid back over time. You have to remember however, that if you fail to make the payments, the bank will end up owning your house.
Divorces are disagreeable experiences, and they can be extremely expensive. The more cooperative former partners are, the less the whole process will cost.
These same experts also caution that there are some things that should be avoided. One of those things is trying to handle all the details involved in even simple divorces yourself. This is not really something you can do on your own. You could end up with a much smaller settlement if you don't have legal representation. Clients are expected to pay their lawyers however at the time they render services. Lawyers will probably not be willing to wait on your settlement to become finalized before they are paid.
If you have your own checking and savings account, this is a good place to start figuring out how to pay for the process. Depending on your age, you could also borrow against your company financial savings plan. Taking funds out of an IRA has tax consequences you must consider.
When you have assets that are not held in common with your spouse, you could try to put them up as collateral for a bank loan. You might also discuss the possibility of borrowing against a future settlement.
If you have family that is in a position to help, and is willing to do so, you could get the money necessary from that source. A lot of times family money is given as a gift with no expectation of return, but this can cause problems down the road. It is usually a good idea to treat any such loan as a business transaction with repayment papers drawn up and signed. This way there are no misunderstandings, and everyone knows what the expectations are.
Putting a certain portion of the expense on a credit card can be an option for some. The credit limit on most people's cards is too low to be of much help, but when you are someone with a large line of credit, you might consider it. Charging for a short period of time, until a loan is finalized for instance, could be helpful. Interest and late fees could become a major problem if you find yourself unable to make the minimum payments though.
Taking out a loan against your home might be a possibility unless the property is owned jointly. If you've got enough equity, you could receive a substantial amount that would be paid back over time. You have to remember however, that if you fail to make the payments, the bank will end up owning your house.
Divorces are disagreeable experiences, and they can be extremely expensive. The more cooperative former partners are, the less the whole process will cost.
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