Managing Divorce Costs
In divorce, the key performance indicator of how well it is faring for either side should be “how well the mutual loss is being controlled.”
Regardless of your jurisdiction, or state in which you file for divorce, the target result is equitable settlement. The court is going to try and realize fairness, although they do not always perceive and order justice and fairness.
When things are tense and both sides have ample arguments supporting their opinion, the court often takes the middle of the road opinion, or, in other words, they “split the baby.” With this understanding, that the middle of the road approach controls, it is wise to be flexible, creative and compromising. Otherwise, divorce costs simply escalate and you end up with the same result after spending a fortune that you would have had you been less rigid.
While time is money, even in the divorce process, rigidity and inflexibility is also money. It creates an inhospitable or even hostile atmosphere and requires unnecessary intervention from attorneys.
It is much cheaper and easier to follow the law and bring the matter to swift conclusion than to fight for unfair advantages in order “to win.” Pursuing unreasonable objectives only escalates tension and the total dollars allocated to the process. And “tit for tat” is a costly strategy.
The more amicable the conduct between the spouses, the more likely the matter can be resolved efficiently and favorably.
Negotiations towards settlement is a delicate balance of timing, motivation, leverage, available facts, accululating legal fees and prximit to scheduled court events. And life does not wait for the divorce process to end.
Often, unwittingly, as the divorce prolongs, changes of circumstances occur in life and these impact the divorce outcome or unfavorably affects one of the parties or their position in negotiations. Such events may cause setbacks or a different course of action creating even more costs and delays.
While an imminent hearing date applies pressure for settlement, it takes one to tango in divorce proceedings. If a party is being uncooperative by not providing disclosures, updates, appraisals, access to community property and the like, the process is prolonged and costlier.
Moreover, court deadlines are often moved and extensions are often granted by the opposing side. Keep a close scrutiny of these antics by both attorneys who try to placate the other side. It just means more time on a case and therefore a costlier divorce.
Timing is a critical component for resolution. As previously mentioned, circumstances change which may result in a poorer outcome than if negotiations had been completed.
Timing refers to both length of time the case has been pending and a spouse’s need to end the conflict because they are exhausted from the battle or because settlement is more appealing given their circumstances. It is important to act as swiftly as possible and keep the pressure on to achieve resolution of outstanding deliverables and responses.
Accumulating legal costs are a great motivator once the spouse beings to balance the cost of the fight with the outcome. Retaliatory actions are often fueled by emotion, not logic or reason. The questions to ask are:
1. Is this issue worth the fight?
2. What is the probability of winning my point of view/approach to this disputed item?
3. What would the court typically rule in this case?
4. How many more reports, time, effort, experts would be needed to fight for this?
By applying a set of cost/benefit analysis to disputes and disagreements, the parties are better able to discern whether it is cost effective to pursue a particular outcome. Of course the target amount in question weighs heavily into that decision.
One particular area that escalates the cost of divorce, is regarding disclosure. Since suspicion already runs high during divorce, it is wise to keep costs in check by not withholding documents, payments or otherwise being secretive. The opposing side will use this “lack of trust” as often as possible to make settlement more difficult.
Settlement should be the goal. Do not create reasons for delay. If opposing side is not generating the proper disclosures in a timely fashion, simply have your attorney subpoena them. Often, the threat alone, generates a more responsive action and cooperation.
Divorce is costly, but there are a multitude of ways to keep the costs in check and preserve wealth for post-divorce financial security.
This article does NOT constitute legal advice and is for general information purposes ONLY. Prior to making any decisions, seek legal counsel from a licensed attorney.
