Divorce in These Tough Economic Times

DIVORCE IN THESE TOUGH ECONOMIC TIMES

Divorce can be a difficult end to a relationship that started with so much love, hope and promise. Sometimes it is necessary because of abuse, addiction and affairs. Sometimes a loveless marriage can feel like a soul death. Sometimes the divorce is not of our choosing and is thrust upon us. These are hard economic times that include ballooning debt, layoffs, struggling businesses, diminished home values, and rising medical and college costs.

Many people wonder if they can “afford” a divorce. Two households at the same lifestyle level will increase the monthly expenses. Experienced, competent lawyers typically charge between $150 and $250 an hour. It’s painful to think about selling your home when property values are depressed. Just going through the whole thing is a daunting proposition when stress levels are already high.

There are ways to navigate through this difficult terrain. Here are just a few ideas:

1) Consider alternative dispute resolution rather than litigation. In mediation, it is possible to use attorney time briefly at the beginning (to help define goals) and at the end (to review the agreement with your best interests in mind). A trained mediator can help guide you through the process. Or consider arbitration as another option. It provides you with a binding decision in a short time frame, with or without attorney involvement.

2) Consider creative financial arrangements. For example, you can negotiate your agreement to adjust later to more favorable economic circumstances. You can construct your agreement to allow for the sale of your home at a later date, while allowing you to live separately in the meantime. Expert financial guidance can be used to help you restructure debt, find tax efficiencies, and use retirement monies tax-effectively to deal with cash flow issues. A professional can also help you to divide assets so that the intent of your divorce agreement is not undermined by an unstable financial market.

3) Be careful of going through the process without any attorney guidance (going “pro se”). It can wind up being “penny wise and pound foolish” because you may inadvertently and inappropriately give up some benefits or not consider certain eventualities.

4) When it comes to the children, if you cannot agree, there are options to help you through the process. In addition to mediation, an “Early Neutral Assessment” can provide you with a “sneak preview” of how the Court might view your case and provide you with recommendations.

5) For some families, what is needed is a reassessment of their lifestyle. Both people may need to cut back in order to create two separate households. A neutral professional can provide a fresh voice of reason.

6) You may even want to consider bankruptcy as a last resort. It is possible to go through bankruptcy with more of your assets intact when certain procedures are followed. A professional with expertise in this area can be well worth their fees.

Please feel free to share this with a friend.

Sat Tara Kaur Khalsa, M.S., L.P.C. is a psychotherapist and consultant who specializes in divorce. She can be reached at sattarakaur@comcast.net or 303-530-7080. Her website contains a variety of articles related to divorce: divorce-success.com

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