Life Events
Zoe Team
4 min read
Legal costs are an inevitable and significant factor in most divorce proceedings.
Consulting with professionals early can help manage financial expectations during the process.
Proper financial planning is necessary to navigate the complexities of asset division.
Lawyers are necessary to navigate complex legal requirements, provide professional advice, and ensure your rights are protected throughout the process.
Yes, even in amicable scenarios, most divorces involve some degree of legal guidance for paperwork, consultation, and final decrees.
It is important to evaluate your financial situation early, plan for potential legal costs, and seek clear, professional advice from the start.
Divorces of almost every sort involve lawyers to some degree, which means that you need to consider lawyer’s fees. Even if you do not go to court for anything besides receiving the official divorce decree, you will likely be utilizing a lawyer for consultation and advice throughout the process. These lawyer’s fees can add up quickly as lawyers often bill by the hour, and it is therefore important to budget for these extra expenses.
In the case where both parties work and a lump sum settlement is agreed, your monthly household income will be reduced as your household goes from two incomes to one. This reduced household income may cause significant disruptions to your living conditions and lifestyle. Making certain adjustments to spending, budgeting, saving and investing can all help to reduce the impact of this change on your day-to-day life.
If you were sharing a home, one or both of you will be finding a new one. This change will affect your fixed expenses, your insurance choices, and potentially your taxes. Advice about how to restructure each of these can be invaluable in setting a new, appropriate foundation for your personal finances.
As an additional long-term change in financial circumstances from divorce, one of you may also be liable for alimony as decreed by the court. Alimony is a payment from one former spouse to another and is determined by a variety of factors. Alimony can be a temporary or long-term agreement. It is designed to be highly-situation specific and can change as circumstances change. Budgeting for any expected alimony payments can go a long way to reduce the impact on your lifestyle.
Divorce is a difficult time emotionally and with a variety of complex financial and legal matters that also need to be dealt with. Once you are in the midst of a divorce there are a variety of costs to budget for and activities to pursue, ranging from working with your lawyers to preparing for your new financial situation.
While it won’t completely ease the pain of the process, preparation and awareness will go a long way in making the transition more successful.
A divorce can be a very disruptive experience that affects your emotional well-being, lifestyle, family life, career, and more. Besides these stresses, your financial situation will change. Below we discuss a couple of practical considerations during this time.
Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.
