Splitting Up in a Downturn

Splitting Up in a Downturn

Couples are increasingly using ‘alternative’ methods to get divorces, such as mediation and collaborative law, both of which allow partners to minimize court time and work out amicable agreements. Here are some pointers for parting ways effectively in difficult economic times:
Try to meet with a financial professional or a marriage therapist separate from a lawyer to reduce hourly billing legal costs.
If possible, consider a co-ownership agreement for a house or draft a strategy to sell it when the market conditions improve.
Be wary of a divorce settlement that implies receiving of the shares of family businesses or shares of company stock as the values of those assets may deteriorate significantly.
Include health-insurance plans and costs as part of the negotiations.
Many divorces provide for child support, but may not specifically address things like paying for college, summer camp, daycare or other extra expenses.
If you apply for a loan or credit card, be honest with the application and know that information on it could be used in a divorce proceeding.
If a divorce filing lasts for several months, consider a temporary agreement to address financial issues in the interim.