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Divorce - the true cost

The true cost of divorce is of course the emotional effect it has on everyone involved, however the financial implications cannot be ignored. By educating yourself and taking a few precautions you can reduce the impact on you and your family.

Obligations
If there are children involved it is important to sort out maintenance issues as soon as possible. Hopefully this can be done amicably without having to consult a solicitor or the Child Support Agency (CSA). Any verbal agreement you make with your ex-spouse will not be legally binding so it is a good idea to have any financial agreement you make included in the divorce papers.

The main issue is agreeing how much maintenance payments should be. Try to discuss the issue calmly with your ex and remember that it is the welfare of your children that is at stake. Make a list of all the possible bills and expenses the custodial ex-spouse may have such as gas/electricity bills, food allowance, school fees, any clothes expenses for your children and then try to agree how many of these you think your ex should share the responsibility for.

Although it may be difficult, try to be fair. When setting the maintenance amount don't use money as a weapon against your ex as it will be the children that suffer in the long run. Also make sure you are in the know - try to find out how much your ex-spouse earns on a monthly basis so that they can't play the poverty card.

Paying maintenance is a legal requirement so if your ex is refusing to contact a solicitor or the CSA for guidance, don't be tempted to withhold any visitation rights as a way of getting payment as this will only lead to further arguments and bitterness.

Assets
Sometimes the only thing you want to do when dealing with your divorce is to get it over as quickly as possible. But this could lead to you walking away with less then you should have.

Don't willingly give up what you have a legal right to, but in the same vein, don't purposely go for things you don't have a right to as some misguided revenge for any distress you feel your ex has caused you. Try to come to an amicable agreement when dividing up assets but if this is impossible then make sure you both consult individual solicitors to help.

When considering your assets remember to include things like joint savings/bank accounts, share certificates or life insurance policies you have, as well as material possessions such as a house, car, and any antiques or artwork you may jointly own.

You should also consider your pension provision when dividing up your assets. If you both have your own provision then you could agree to not claim against the other's pension entitlement. If you don't have your own pension provision then you can make an application to the courts for part of your ex-spouse's pension entitlement to be transferred to you.

Protect yourself
Once you know a divorce is in the making you should cancel any joint bank accounts you have and open new accounts in your own individual name. This doesn't mean clean out all the accounts and keep the money for yourself. You should try to agree how to split any joint accounts so you are both happy. Similarly cancel any joint credit cards you may have to ensure your ex doesn't rack up huge debts which you could become liable for.

Make sure you amend the beneficiaries of any investment, retirement or life insurance policies you may have. You should also update your will if you have previously made one.

There's only one winner
The only winners when it comes to divorce are the solicitors. They don't care who is responsible for the divorce only that they can make money out of it, especially if they are involved in sorting out the division of any assets.

Although it may be hard, try to keep on civil terms with your ex-spouse and make financial decisions jointly. This means more money will be left to be divided between you rather than lining your solicitor's pockets.

Source: Time For Money