When California residents begin to consider divorce, one of the first questions they have to answer is how to pay for it. With legal fees averaging about $15,000, the process of ending a marriage can be very costly. Additionally, once the settlement is final, there might be child and spousal support to be paid as well. Deciding how to pay for the divorce can also significantly impact each person’s financial health post-split.
One way to pay for divorce is by taking a personal l loan that requires no collateral. This is important as most, if not all, marital assets are considered in divorce litigation. Personal loans usually have an extended period for payback, with a set interest rate, which means the borrower can predict how much and for how long they will have to pay. However, borrowed amounts are set, so if any additional divorce costs appear, the borrower would need to take out a new loan. There is also an application process, interest rates might be high or the person might not be able to get the loan.
Other methods of paying for the divorce include borrowing from family members, which is usually interest-free but opens up the possibility of the family member wanting to have a say about the divorce process, using a line of credit or a credit card, and paying for the split with savings. There really isn’t a best way to pay for a divorce as each person’s situation is different. When deciding what option to choose, it is necessary to consider the particulars of each case.
The divorce process, however, can be complicated. One way to try to prevent making mistakes that might become costly is to seek the guidance of a family law lawyer who can assist with discussion options, filing appropriate forms and offering representation during settlement negotiations.