Even when things go smoothly, divorce is often an expensive and lengthy process. This means that in addition to facing the emotional strains of an ending marriage, individuals might also be stressed about making ends meet.
There are ways to save money during divorce, financial professionals say. In a recent Huffington Post article, Brendan Lyle, the founder of a divorce finance company, shared several money-saving tips for individuals to consider during this financially difficult time.
Lyle tells readers to consider what other money options they have before relying on credit cards. Can you take out a bank loan? How about borrowing money for a short time from family or friends? If the case is likely to last for a while, there are divorce lenders who will often defer payment until a settlement is reached.
You will likely have to use credit cards for some expenses, but Lyle cautions readers to avoid maxing them out. Doing so could ultimately add additional problems such as high monthly payments or even a damaged credit score.
Make sure to budget for essentials first. Can you afford to pay rent or your mortgage? Do you have enough money to cover essentials for as long as the divorce process is expected to last?
Finally, Lyle says that you can save significant money by putting some time and effort into finding the best family law attorney for your case. Not only does this promote the most successful divorce outcome, it may save time, money and headache because you likely won't need to switch attorneys in the middle of the divorce.
Divorce can be expensive, but there are ways to minimize costs. With some careful planning (and perhaps thoughtful borrowing), you may be able to maintain financial stability during this otherwise unstable time.
Source: Huffington Post, "Top 5 Ways to Ensure Financial Security During your Divorce," Brendan Lyle, April 23, 2012