Skyrocketing prices for everything, including food items to gasoline to unemployment, have effected the economy and all of these factors have had influence on those seeking a divorce. Anxiety over these issues is natural when considering how much the divorce could ultimately cost when all is said and done.
Divorce Option: Save Money by Using Mediation
Traditional litigation can be very expensive. Court hearings to resolve issues will rack up attorney fees, plus there are costs for the preparation and filing of motions and other documents. Then, there is time spent in the court hearing itself which could add additional hours.
Mediation is becoming more popular as a way for you and your spouse to meet and resolve the issues with the guidance of a trained divorce mediator. You can put together your own divorce agreement and avoid the costs of litigation. Saving significant amount of money will benefit both parties in the long run.
A Mediator Can Help Assess Your Financial Situation and Create Budgets for Each of You Going Forward with the Assistance of a Certified Divorce Financial Analyst (CDFA).
One issue a mediator can help you with, with the assistance of a CDFA, is in assessing your financial situation as you make plans for your future.
Conduct an honest and thorough examination of your assets and liabilities.
Honesty is important and very necessary to complete the mediation process. No matter how difficult it might be, one must not be reluctant to reveal hidden assets and debts that have accumulated during marriage. Here are some suggestions:
- Determine the equity you have in your home. It is difficult to accurately assess this in the current economy where, in California, real estate prices fluctuate. Consider this when analyzing your home equity.
- What investment accounts do you have, what is their current value, and how will you divide them? This includes 401(k) plans and other retirement plans you or your spouse may have through your work.
- What are your debts? Include credit card debt, car payments, and all loan payments, including student loans.
Create a budget for each of you going forward.
You can work together with the mediator and with a qualified CDFA to create a realistic budget for each of you as you move into living separate lives.
For assistance with your divorce and how to save money using mediation, or any questions you may have about your divorce, contact Kim Mediation and Law Center. You can also call us at 213-351-1000 to schedule a consultation.