Divorcing in a Bad Economy

When I first started practicing family law over a decade ago, most people had equity in their homes and decent amounts in their retirements/pensions. When there was plenty to divide, splitting up was not so painful, and my job was a lot less complicated.

These days, a lot of people are facing short sales or foreclosures because their homes are underwater. Retirement accounts have lost a fair amount of value in the last couple of years, and good pensions are rare. People are unsure about their job security and their future, and as a result, I think fewer people are making the drastic decision to separate and divide into two separate homes. As long as they don't ignore the issues in the marriage, and make an effort to address the problems in the relationship, I think this is a good thing; if they don't the whole arrangement is eventually going to fall apart.

When the decision is made to divorce, there is a lot the couple can do to minimize the legal expenses. First, if they can agree to go to a mediator, they will only being paying for that one professional's time as opposed to each incurring legal fees with their own attorneys. Second, if one person wants to consult with an attorney first and have a Separation Agreement drafted, the other partner can then set up a consult with an attorney of his/her own choosing simply to review the proposal. Ultimately, the more negotiating the parties can do on their own and the more information they can exchange freely and voluntarily about their income, assets and liabilties, the less they will have to spend paying professionals to do this. Third, for parents with young children, they may want to consider consulting a mental health professional trained in child development, who can help them work out a Parenting Plan that will include an appropriate time-sharing arrangement. Fourth, couples that do not want to litigate, but need the advice of their independant counsel to help in a mediation-style dispute resolution format may want to consult with attorneys that are Collaborative Professionals to see if a Collaborative Divorce is a viable alternative to litigation. Finally, when all else fails, even in litigation couples can minimize their expenses by using mutually agreed to evaluators, appraisers, and other experts.

Divorcing with an attorney is a luxury these days. While you may not be able to afford to retain one for a full-blown litigated case, it is worthwhile getting a consult, learning about your options, and then formulating a strategy that works within your budget. For most cases where people want to minimize the expenses, opting for mediation or a Collaborative Divorce will certainly help preserve more of the family's wealth than going to court.