EP 2: How to Pay for Your Divorce
In the second episode of the Divorce and Your Money Podcast, our host Shawn Leamon, who has an MBA, is a Certified Divorce Financial Analyst and the author of Divorce and Your Money: The No-Nonsense Guide, talks about making smart financial decisions as you go through one of the most difficult transitions of your life.
In this episode, Shawn will teach you about paying for your divorce. A divorce can be very expensive, the cost is directly proportional to how much acrimony and fighting there is in your divorce. Things like attorney fees, financial consultants, etc., can cost you thousands of dollars. The simple question of how are you going to pay for your divorce needs to be answered from the beginning of the process. For the ones who are financially secured, it may not seem like a huge issue; but for the majority who aren’t as lucky, it may be potentially troublesome.
When you listen to this podcast, Shawn will review some options that can help you protect your financial interests. The most important thing you need to do regardless of your financial situation is establish financial accounts in your name only. You can go to a bank and have an account created under your name only. If you have investment accounts, make sure they are in your name only. In some cases, you might need to have a mailing address that only you have access to.
There are options to pay for your divorce if you are not financially secure. This information can vary by state so make sure you are consulting an attorney first before taking action.
4 Resources for Financing Your Divorce
- Take money from joint accounts.
- Ask your spouse to pay for the divorce proceedings.
- Get a loan.
- Be creative.
First, if you have a joint account with your spouse, you are entitled to half of it. Move your half of the assets to a separate account, under your name only, when you start thinking about divorce. You also need to be aware of any legal consequences this action may have in your respective state.
Second, an option is to have your spouse pay for the proceedings. Your attorney can assist you in having an agreement set up to have one spouse pay for the divorce proceedings.
Third, there are some companies that specialize in funding divorce cases. Getting a loan is a very viable option if you don’t have enough finances to support this process.
Finally, the last option is what Shawn calls “Being Creative.” Sometimes the first three options don’t cover the expenses or are not available to you, and you will need to use whatever resources you have at your disposal. This includes seeking help from family or friends, selling some assets, etc. The idea is to be prepared. You are about to have an expensive and emotional journey, and it is vital to figure out how you are going to pay for it as soon as possible.
Key Learning Points from This Episode:
- The cost of your divorce is directly proportional to how much acrimony and fighting there is in your divorce.
- You must establish financial accounts in your name only.
- Have a mailing address that only you have access to.
- Information can vary in different states with respect to their divorce laws.
- Always consult an attorney before making any decisions.
- Options for paying for your divorce include:
- You can take money from joint accounts.
- You can request your spouse pay for the divorce proceedings.
- You can get a loan.
- You can get creative with how you pay for your divorce.
Don’t forget to share this podcast with a friend that you know could also benefit from learning how to finance the cost of their divorce.