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Affordable Family Law Services in AZ
Author Jonathan Roeder Posted on

Affordable Family Law Services in AZ

When a legal dispute arises regarding a family matter like divorce, separation, alimony, or grandparents’ rights, you’ll likely consider hiring a family lawyer to assist you. However, some individuals forgo seeking help due to financial concerns. While many may believe navigating a family law matter on their own can save them money, the opposite is actually more likely to occur. Family lawyers are trained and experienced in building solid cases to earn compensation for their clients, as well as protect their rights when faced with opposition.

We would like to outline some money-saving tips for hiring a family lawyer to defend you, but we also want you to consider working with our team. Draft My Legal Docs provides Arizonans with a vast array of legal documents necessary to address family law situations, all available with expedited turnaround times. Not only can we provide you with excellent solutions for your family dispute, but we can do so while saving you money.

How Much Does a Family Lawyer Cost in AZ

First, it’s important to reiterate that no family law firm is exactly the same as the next, meaning they’ll all charge different amounts for their services. However, this doesn’t mean you can’t find a family lawyer for an affordable price.

On average, a family lawyer can cost about $250 per hour. However, lawyers may charge up to $600 per hour in some cases. The amount charged can change depending on your scenario and how long your case will take to complete. For instance, if you’re looking for services for a very straightforward case, a lawyer may only charge $250 per hour, and if they’re only needed for a few hours, you may not even spend a full $1,000. However, if you need full representation for a family dispute that lasts several months and requires the collection of evidence, interviewing witnesses, financial disclosures, and more, expect to pay quite a bit more.

This may sound unappealing, and we understand why many feel this way. However, the peace of mind and full services, plus secure protection and safety down the line, may be what you need to proceed with confidence. Family lawyers can be pricey, but if you research your options and determine exactly what you need help with, this might present long-term benefits for you and your family.

Can I Seek Legal Advice for Free?

You might wonder how to get free legal advice in Arizona, and while this is technically possible, the advice and experience a lawyer can provide are much more beneficial. That said, you can contact certain organizations and browse the free legal services they provide. It’s important to remember that these are indeed free, so while they may prove helpful, a lawyer can address more precise details of your case that free services may not cover.

Can I Seek Legal Advice for Free

What Is the Average Cost of Divorce in Arizona?

Divorce is by far the most common family law matter in Arizona. As with any family lawyer, there is no set amount of how much they will charge for their services.

There are multiple factors that can influence the final cost of both a divorce and the legal fees, including, but not limited to:

  • How many children the couple has
  • Business interests, debt, and properties
  • Significant assets such as retirement funds and bank accounts
  • Litigation

Still, the average cost of a divorce in Arizona totals around $20,000 per spouse, and if your case proceeds to litigation, the total can exceed $40,000. If this seems unattainable to you and you’re wondering, “What is the cheapest divorce in Arizona?” know you can spend as little as $620 on divorce without legal assistance. However, while this may sound enticing to some couples due to the significantly lower price, attempting to go through a divorce without any legal support is both challenging and risky. DIY divorces are incredibly rare in Arizona, and some couples who go through the process this way may not end up with the most favorable results after the divorce is finalized.

Overall, the longer the amount of time it takes to get through your divorce, the more you may have to spend on legal fees. However, it’s crucial to consider legal representation and services so you don’t put yourself at any unnecessary risk.

How To Keep Your Divorce Costs Down

Divorce is likely an emotionally challenging and stressful time for you and your family. It’s understandable why many people wish to keep divorce lawyer costs as low as possible as they heal from this situation. Perhaps even more importantly, keeping costs low may prevent financial strain down the line.

How To Keep Your Divorce Costs Down

The most efficient way to prevent your divorce costs from rising is to refrain from engaging in unnecessary arguments with your partner. For example, rather than arguing over who owns each possession, leave it to your lawyer to investigate the situation and make the decision according to Arizona’s community property laws. Even better, consider engaging in mediation to solve these issues before litigation becomes necessary. Otherwise, undecided issues must be brought forth to a judge, which can be expensive and unnecessary. ‘

Finally, it’s imperative you are honest and open with your lawyer. Their goal is to help you maintain as many of your rights as possible through this process. Make sure you are forthcoming with all information to make the process go quickly and smoothly.

The Best Tip for Reducing Family Law Fees

While there are strategies you can keep in mind that help reduce your family lawyer costs, there’s one in particular that can benefit you the most: this involves reaching out to the skilled attorneys at Draft My Legal Docs for legal document drafting.

We know how confusing and detail-oriented legal issues can be, but you don’t need to navigate them alone, even if you don’t want to spend money on a full-service attorney. While legal documents can be roadblocks in your case if you complete them inaccurately or fail to file them on time, hiring a legal document service like Draft My Legal Docs can ensure you don’t negatively affect the outcome of your case. Rather than risk losing property or a reduction in child custody due to a miscommunication or documentation error, allow us to help you be successful in the family courtroom.

The legal system in Arizona can only run efficiently with precisely crafted, accurately filed legal documents. Whether these are the initial claims you’re filing for child custody or documents needed to access evidence, we have everything you need to navigate your family matter with ease.

How Does This Work

When you contact the fully licensed attorneys at Draft My Legal Docs, we’ll send you a questionnaire so we can develop a picture of the nature of your case. You’ll tell us about your family law situation, whether it’s divorce, alimony, child custody, or other related matters. After we’ve heard what we need from you, we’ll send you the appropriate documents to fill out prior to your court appearance. However, you won’t be filling these out by yourself; our licensed attorneys, who are well-versed in family law, will instead draft all the documents you need.

Filling out questionnaire

Regardless of whether you have concerns about how to answer the questions on a particular document or simply need help keeping your forms accurate, we can assist you via phone call, email, or through our online chat service. You also have the option to update your document, so if something needs changing, a qualified attorney can address your concern.

How Does This Save Money?

When you submit inaccurate paperwork to the court for review, this can negatively affect the final outcome of your case. For instance, if you and your ex-spouse are attempting to resolve an alimony dispute, you must submit comprehensive information to the court, including extensive financial documentation, as this is necessary to determine how alimony is calculated. Mistakes in these types of documents can result in misunderstandings, misrepresentation, and more, and can cost you a great deal of alimony.

You may not understand how to draft your own legal documents, but that’s why we are so passionate about helping Arizona family law clients from all walks of life. Every legal scenario is unique, and if you don’t fully understand what’s required from you when filing a claim, you should seek legal support immediately.


Without help from Draft My Legal Docs, you risk incomplete, inaccurate, or even wrongful documents, as well as missed deadlines and additional court costs. Rather than take this gamble, work with our team at Draft My Legal Docs so we can help you achieve a positive outcome for your case.

Draft My Legal Docs: Affordable Document Services in AZ

Draft My Legal Docs Building
Whether you’re disputing alimony, paternity, relocation, property division, child custody, or divorce, you need a qualified lawyer who can defend your rights in court or a substantial knowledge of the Arizona family court system. If you decide to approach your family law case without an attorney, you need timely and precise paperwork that fully illustrates your situation, as this will be used by the court to reach a decision.

Draft My Legal Docs is a 24/7 document drafting service that enables licensed attorneys to examine your situation and craft high-quality documentation that you can use to support your claim. Arizona is known for having a challenging legal system with several hurdles to clear, but we want to streamline this process for you. To learn more about what we do, how we can help you improve your case, and how we can help you save money on your family court case, contact us today.

Is Collaborative Divorce the Right Choice?
Author Jonathan Roeder Posted on

Collaborative Divorce Mediation: Is it the Right Choice for You?

A collaborative divorce, or collaborative divorce meditation, is an excellent way to work through dissolving your marriage in a way that allows you to focus on working together privately. With collaborative divorce, dissolving your marriage doesn’t have to be contentious or drawn out in litigation.

Instead, a collaborative approach can help you get through divorce without the court’s interference for the bulk of the process. Here we will discuss the benefits of taking a unified approach to divorce, who collaborative divorce is suitable for, and what a collaborative divorce entails in the state of Arizona.

Who Should Consider a Collaborative Divorce?

A collaborative divorce is an excellent option for people who do not wish to engage in lengthy divorce proceedings through the court. Using a collaborative approach to your divorce will help you avoid hashing out your issues in court, which costs time, effort and money. With a collaborative divorce meditation, you can stay on top of the process and have your attorney assist you with the various legal aspects of ending your marriage.

If you want a divorce that focuses on team effort and leaves out the drawn-out legalities, a collaborative divorce is the way to go. You and your soon to be ex-spouse can work through mediation with the shared goal of parting ways in an amicable manner.

What Makes Collaborative Divorce a Good Option?

Collaborative divorce mediation is a good option for several key reasons. We’ve listed the most common reasons people choose collaborative divorce.

You Can Avoid Lengthy Litigation

This benefit has been discussed above, but it is important to stress that collaborative divorce mediation keeps your divorce proceedings in your hands. In traditional divorce proceedings, a judge presides over your divorce and steps in to make decisions if you and your former spouse are at a point of disagreement. While this process works in situations where the involved parties are experiencing difficulties settling issues, it is not necessarily applicable to couples who want to divide assets and settle custody issues on their own.

You’ll Experience Flexibility in Scheduling Negotiations

With mediation, you can schedule divorce negotiations around other important day-to-day needs like work and the children’s school hours. You and your team can decide on a timeline for the divorce and work to resolve issues in a manner that helps everyone involved save precious time. Traditional litigation considers availability of the courts first and foremost, which can lead to a divorce that takes significantly longer to finalize.

You’ll Save Money on Court Fees

SSave Money on Court Fees

If you have a complex case where you need to divide businesses, split valuable assets, and sort out child custody, divorce litigation can become very expensive. Through mediation, the process of settling issues pertaining to children and finances can be much more affordable. Saving money in a time where you’re going through such a drastic life change can have a significant impact on your financial standing and should not be overlooked. Collaborative divorce mediation can achieve the same results while preventing you from spending thousands of dollars.

Collaborative Divorce Can Be Less Stressful For Children

Collaborative divorce mediation can prove much less stressful for children, especially if they would have been required to appear in a courtroom in front of a judge. In court proceedings where divorcing parents aren’t communicating with each other to make important decisions regarding the well-being of the children, children may need to meet with court officials. In mediation, both parents work together with their attorneys and can request the assistance of child specialists, communication liaisons and other professionals to maintain a healthy and productive dialogue about childcare needs.

When couples are divorcing, the idea of their child sitting in a courtroom often isn’t considered until discussion has devolved to the point of litigation. Fortunately if you are filing for divorce in Arizona and looking to do so via collaborative mediation, you can avoid this possibility. Settling your divorce and child custody arrangement through mediation can be a more gentle experience for the entire family.

Collaborative Divorce Helps Keep Your Divorce a Private Matter

In collaborative mediation, you can consult with legal representatives the same as you would in traditional proceedings. You have the added benefit of being able to ask questions, challenge decisions and work through points of disagreement yourself instead of relying on a judge. While your efforts are collaborative, your attorney will still serve to protect your rights and work in your best interest. Having legal counsel in your corner ensures you cover your needs in the process of dissolving your marriage.

What Issues Are Covered in a Collaborative Divorce?

Collaborative Divorce

In a collaborative divorce, mediation allows for negotiation between parties to reach satisfactory resolutions. Unlike traditional litigation, divorcing spouses rely on their attorney team and the mediator to help them come to agreements on all the issues usually covered in courtroom divorces. The most common issues you can expect your attorney and mediation team to focus on are as follows.

Division of Assets & Property

The division of assets and other property is a highly contested and complex divorce matter. Many couples, even those who are not interested in fighting in court, struggle to comb through the details of asset division effectively. With collaborative divorce mediation, this process is made smoother with the help of your attorney and a financial professional who has the expertise to settle property division issues. Your team will need the full cooperation of you and your spouse to accurately divide your assets, property, and finances.

Spousal Maintenance

With the help of your collaborative divorce attorney and your financial professional, you and your spouse will decide whether spousal support is warranted and determine the details of the arrangement. To successfully negotiate spousal support, you and your spouse must provide accurate financial information so the professionals can make a determination regarding financial support. Once an agreement is reached, a support document is created and both parties must honor the agreement. The spouse who is responsible for providing spousal support will then be required to assist the other with essential financial needs for the time specified.

Child Custody

Child custody (now referred to as legal decision-making) is often the most difficult part of a divorce to settle. When children are involved, emotions run high. As a result, power struggles over legal and physical custody can drag divorces on for extended periods of time. In a collaborative divorce process, divorcing spouses and their team openly communicate to negotiate the needs and desires of each party regarding childcare and important decisions. Like all other aspects of the divorce, spouses are encouraged to talk out issues so they can come to an agreement that works for both parties and serves the best interest of the child.

With the help of a collaborative team of professionals, divorcing spouses can develop a parenting plan that helps them decide how to communicate about childcare, how to schedule physical custody, and what they will do when critical issues regarding the child’s education, shelter, medical care and socialization arise. The parenting plan can then be approved and finalized by a family court judge.

Pets and Pet Care

A beloved pet is also an important member of the family that must be taken into consideration when spouses are divorcing. Decisions often revolve around which spouse has a stronger attachment to the pet or which spouse does most of the daily pet care. Still, it can be difficult to decide who will keep the pet moving forward. If an agreement over pet care and costs cannot be easily reached, a collaborative team can help decide how to share pet care and costs.

What Is the Cost of Filing For Collaborative Divorce in AZ?

The costs of divorce litigation can be very expensive. Attorney fees alone can range from tens of thousands of dollars to even a hundred thousand in more complex cases. While each divorce case differs in complexity, divorcing spouses who opt for a collaborative divorce process find themselves spending a fraction of the costs associated with traditional litigation.

Collaborative divorce can cost as little as a few thousand dollars. You will typically pay an attorney an hourly rate for the time they spend working on your case, but you are only billed for the time your mediator spends in mediation. Furthermore with the time saved in mediation the entire divorce process is less taxing on spouses, children, and even pets.

We Can Help You During Your Divorce

Help During Your Divorce

Divorce is a common but serious process that entails a great deal of decision-making and compromise. If you are filing for divorce in Arizona via collaborative divorce mediation, it is essential to prepare for the steps required to settle matters in a way that benefits the entire family.

Our legal experts are available to help you stay in control of the divorce process and effectively work through important issues to reach solutions that preserve communication and foster harmony. Count on us to assist with the creation of documents that will outline the essential aspects of your divorce. Together, we can ensure all your most important needs are thoroughly addressed and settled.

*Editor’s Note: This article was originally published Mar 30, 2018 and has been updated September 14, 2022.

How Financially Prepare for AZ Divorce
Author Jonathan Roeder Posted on

How to Prepare Finances for a Divorce in AZ

A handful of important considerations beckon your attention throughout the divorce process. And, being prepared can help ensure your assets stay protected.

How to Make Financial Moves Before a Divorce

If you or your partner have recently filed for divorce in Arizona, there are a few things that you should try to do as quickly as possible.

Choose a Lawyer that’s Right for You

One of the most important steps you can take before beginning a divorce is hiring an attorney you can trust. Divorce can be an intimidating process that is already emotional and stressful, and feeling unsure how to proceed can create even more anxiety.

By hiring an experienced AZ attorney, you will receive advice and assistance throughout your divorce, including formidable representation in court. A divorce lawyer is experienced with all the issues that may occur during divorce, including financial considerations. If you and your soon-to-be-ex-spouse differ regarding the division of assets, an attorney can help you handle financial concerns in a way that preserves your future.

Organize and Identify Your Assets

Organize Records

Identifying your assets also helps if you think your partner may try to sell or hide any community assets in an attempt to avoid dividing them with you. Bank statements, credit card statements, mortgage statements, retirement accounts, life insurance policies, and any physical assets or properties should all be accounted for. It is critical to know what you have before you begin the property division process.

Estimate the Cost of Your Divorce

Unfortunately, divorce is rarely a cheap process. Many people go into divorce not expecting its high price tag and are therefore uncertain what to do with money before a divorce begins. Whether you choose mediation to settle various aspects of your divorce out of court or engage in lengthy litigation to make decisions, divorce expenses can add up quickly. Since every divorce is different, it isn’t easy to determine the potential cost of your case. However, estimating attorney fees, moving costs, court fees, and regular monthly expenses can help to give you a better idea of how to manage your money moving forward.

Avoid Making Major Financial Decisions

Of course, divorcing is itself a major financial decision that will impact your finances. However, other major decisions, like changing your beneficiaries, closing accounts, and transferring assets before a divorce can hurt you during the divorce process. These things will be handled legally once the divorce is underway and the division of assets has begun. If you make these moves too soon, you may risk contempt of court or lose your assets to your soon-to-be-ex.

How to Prepare Finances for an Arizona Divorce

During your divorce, division of assets will result in property ownership changes, in addition to your regular and divorce-related expenses. Here are some tips for handling your finances during the chaos of a divorce.

Close Joint Accounts

Close Joint Accounts

Once you have begun the divorce process, it’s time to start closing your joint accounts. Often, bank accounts have both partners’ names, and funds will have to be transferred individually to new accounts. Joint credit cards must be canceled through the creditor, and you’ll have to open your own new credit account.

Closing joint accounts can help prevent your ex-spouse from misusing funds before the divorce is finalized. It’s important that you open a new checking and savings account in your own name and arrange income for deposits and debits for expenses to be handled through the new account. You should also keep documentation regarding when you closed your joint accounts and began your own.

Get An Asset Evaluation

Your assets are important. Whether you’re dealing with expensive collectible items, a shared family home, or your retirement fund, evaluating your assets is critical for a fair property division process. By hiring a professional to evaluate your and your ex-partner’s assets, you can ensure that the correct value is placed on each asset and that they are fairly divided during the divorce. A professional asset evaluation should be done as soon as possible to avoid delays in your divorce and prevent your partner from hiding assets.

Gather Financial Documentation

To properly handle your finances and ensure that property division occurs fairly during your divorce, you will need to collect a great deal of financial documentation. If you have not already done so prior to beginning your divorce, gather bank statements and credit card statements to help to give your lawyers and the court a better idea of how finances were used throughout your marriage. Checking and savings statements, pay stubs, credit card statements, bills, loan agreements, and income tax returns are all critical documentation needed during a divorce. These documents can help the court understand how money was handled as well as its source, such as the individual incomes of each partner.

Maintain Your Individual Credit

Your credit score plays a crucial role in many areas of your life, including your financial health. Despite the difficulties of your divorce, it’s important to maintain your credit. Unfortunately, people often complete a divorce with weak credit due to mounting expenses, their partner’s spending issues, and many other factors. It’s essential to continue building your individual credit so that you can avoid issues like higher financing rates or difficulty renting or purchasing a new property.

Don’t Forget About Insurance Policies

Insurance policies can become a complex financial task because they often affect other important aspects of your life, many of which were shared with your partner. For example, most life insurance policies will require beneficiary changes if you wish to remove your former spouse. Car insurance policies may also need to be changed if they were previously shared by both spouses or if vehicle ownership has changed.

How Can I Afford to Live on My Own After Divorce?

During a divorce, you may experience multiple different housing situations, all of which present different financial concerns. So, how does this work?

Home Sale

One Spouse Buys Out the Other

Since a home is a physical asset that cannot be split unless sold, the person remaining in the family home must often “buy out” the other spouse. This can be done via a cash out finance or forfeiture of an asset or assets of equal value. With these assets or funds from the cash out refinance in hand, the other spouse can afford a new living situation. The title will need to be transferred to the remaining spouse, and all ownership and mortgage documents should be solely under that spouse’s name.

Spouses Agree to Sell the Home

Another option is selling the family home. Sometimes, this is the best option for couples who do not have children, or cases where neither partner feels they have the finances to maintain the home on their own. With the help of a real estate agent and your lawyer, you and your partner can sell your shared home and then split the proceeds fairly. If you and your partner can’t afford to keep the home or are worried about selling it in the current market, you may also agree to rent the house to a third party. When this happens, proceeds can be split between both partners.

Other Circumstances

Unfortunately, the above options may not be available for all couples, especially if they owe more for the home than the home’s current market value. In some cases, if neither you or your partner wants to remain in the home, or neither of you feel you can afford to stay there, you may have to agree to sell the home at a loss. In more severe circumstances, foreclosure may be necessary. Moving forward, the assets retained after the divorce and your own efforts to maintain your credit should help you find a new residence you can afford.

Protect Yourself and Prepare Your Finances During a Divorce

We provide affordable legal services for any individual involved in or looking to initiate a family or divorce law case. We offer guidance as well as our professional expertise and knowledge of the law. We are located in the heart of Phoenix, but our services are digital, which allows us to help individuals throughout the state.

 

*Editor’s Note: This article was originally published March 21, 2018 and has been rewritten August 23, 2022.

Wrecking Your Finance
Author Jonathan Roeder Posted on

How To Keep A Divorce From Wrecking Your Finances

By Laurence Kotlikoff, Next Avenue Contributor 

(Kotlikoff also contributes to Forbes. His posts can be found here.) 

Divorce is always sad, but when it turns ugly, it’s terrible. You may remember The War of the Roses, the dark comedy where Kathleen Turner and Michael Douglas start out as a perfect couple and end up destroying their possessions — including their luxurious house and cars — because they can’t agree on who gets what. That movie is unfortunately hitting home for plenty of boomers and Gen X’ers. According to a recent survey by Allianz Life Insurance, two thirds of divorced women feel their divorce created a financial crisis.

Many of my friends have gone to divorce war, but unlike Turner and Douglas, they destroyed their finances (by paying steep legal fees), not their possessions. Divorce doesn’t have to be as financially painful as it so often is, though.

Why Divorce Turns Into War

What drives divorce wars? My hunch is that many are driven by very different assessments by spouses of the impact of their proposed settlements. For example, a husband may think his settlement proposal is incredibly generous while his wife thinks it’s miserably cheap. Without a neutral measurement stick, their fight — with the lawyers’ meters running — can go on and on.

s an economist, I’d say that this is where economics can help couples. Its math and computer algorithms can figure out precisely how much each spouse will get to spend now and in the future under any given divorce settlement. And this analysis can take into account all relevant factors, including the division of assets, alimony and child support, child custody and the disposition of the marital home.

How do I know? My company just released a new software tooldesigned to limit divorce wars (full disclosure: I derive no income from it). It calculates each spouse’s living standard under any proposed divorce settlement.

John and Sally’s Equitable Divorce

Let me illustrate this new technology:

Take John and Sally Doe, both 50, who are untying the knot after 25 years. John earns $200,000; Sally earns $40,000. John and his employer both contribute $6,000 a year to his 401(k). Sally and her employer both contribute $3,000 to hers. John and Sally plan to retire at 65. The couple has one child, Sam, 10. Sam will spend 80% of his time with Sally and 20% with John. John will cover Sam’s college expenses. The couple own a $450,000 house with a $90,000 mortgage. John proposes that Sally live in their house for eight years, while he picks up three-quarters of the housing cost. Meanwhile, John will buy a condo for $200,000. Sally will buy the same-priced condo when they sell their house, sharing the proceeds 50/50. John also proposes dividing the couple’s $200,000 in regular assets and $1 million in retirement assets in proportion to their labor earnings.

John wants to be fair. He figures that paying for most of Sally’s and Sam’s housing for the next eight years, covering Sam’s college expenses and housing and feeding Sam one-fifth of the time is highly generous. He also believes his and Sally’s living standards will be pretty similar once his much higher tax payments are factored in. So John proposes no alimony or child support.

Is John right? Will he and Sally be able to spend roughly the same amount over the rest of their days?

No, he’s wrong. But by playing around with the numbers and the software they can arrive at an agreement that works for both of them.

John’s proposed settlement lets him spend $83,215 annually and Sally spend $23,353 annually (measured in today’s dollars) after covering all housing costs and taxes. There are lots of reasons for this big differential, including John’s higher salary, his large asset share and his receipt of higher Social Security benefits.

When Sally points out the large spending (living standard) difference, John offers to split all assets 50/50. Now John’s and Sally’s annual spending amounts become $73,891 and $35,757, respectively.

Sally, who sacrificed her career to put John through law school and raise Sam, digs in her heels. “John, you need to pay alimony and child support,” she says. John agrees to $25,000-a-year in child support until Sam goes to college. Sally runs the computer program again and finds that John’s annual spending would now be $68,783 and hers would be $41,158.

Sally says, “John, sorry, but you wouldn’t be making five times my salary if it weren’t for me. There is no reason I should have a lower living standard going forward. If you pay me $20,555 each year in alimony and agree to the other things you offered, we’ll both get to spend the same amount each year: $54,836.”

John thinks this over and then counters with a $10,000 annual alimony payment, pointing out that his job is far more demanding than Sally’s. Sally, upon reflection, decides this is reasonable and the two hire a single attorney for one hour to draw up the agreement. Sally and John used economics to save their divorce.

How to Divorce Fairly

Couples don’t have to use this software to come up with equitable divorce agreements. You can also get a rough handle on your relative spending levels by comparing each spouse’s disposable lifetime resources.

To arrive at this number, you’d start by calculating your lifetime resources (the present value (how much a future sum of money is worth today) of your future labor, Social Security and other income including alimony and child support plus your current net worth. Next, you’d subtract the present value of your projected taxes, housing costs, expenditures on children and other expenses including alimony and child support payments. The difference is your spendable resources.

Do this for your spouse, too, and then divide by each spouse’s maximum remaining lifespan (use a calculator like this one) to find what each spouse will be able to spend annually. This is a rough calculation primarily because you’ll need to guesstimate your taxes and may mis-estimate your Social Security benefits, since they may be different in the future than what you expect today.

Source: www.forbes.com “https://www.forbes.com/sites/cdw/2017/09/21/three-organizing-principles-for-digital-transformation/#1900a7504da3”, Laurence Kotlikoff, 5/31/2017.

Divorce
Author Jonathan Roeder Posted on Leave a comment

Divorce does not have to be expensive

 

Be nice, even if you don’t feel like it.

A divorce can cost you from as little as a few thousand dollars to upwards of $70,000.

It can leave you with debts and a sour taste in your mouth, or free, financially sound and ready to start a new life.

Which it is can be up to you to choose, say the experts.

Here are their tips.

Be nice

Bitter, acrimonious divorces will typically cost more money and take longer, says family law solicitor Jennifer Perry.

Her advice is simple: “Be nice, even if you have to fake it before you make it.”

Perry is a lawyer trained in a method called “collaborative law”, where parties sit with their lawyers around a table to resolve issues, rather than exchanging letters and emails, or going to court. This solution typically costs from $8000 to $15,000.

Divorces fit along a spectrum, she says: “You can go from sitting around the dining table saying, ‘This is what we want to do’, and then going to a lawyer and saying, ‘We want to implement this’, to a scorched-earth policy: ‘He/she is the worst person on the face of the planet and I’m going to do everything I can to destroy them’.”

Usually people fall somewhere in the middle, she says, where a couple of meetings could resolve all the issues cheaply, and result in a more amicable outcome for everyone.

Perry says, the marriage may have broken down, with hurt feelings on both sides, but you should try to avoid the situation where you and your partner are sworn enemies. It will only cost you more in the long run, and will leave your children feeling upset and unsettled for longer.

The goal is to get through the process amicably, so you can run into the ex at a wedding and say hello, instead of wanting to put the cake knife into their carotid artery, says Perry.

Have a fighting fund

Accountant and Money Mentalist Lynda Moore says being prepared financially will help a lot, especially for women, who generally are slower to recover financially from the cost of a divorce.

No one can divorce in New Zealand without each partner having a lawyer sign the paperwork and explain the consequences, so with even the simplest divorce, you’re going to be in for legal fees.

“You’re very vulnerable when the money’s cut off, which is why I always suggest putting money aside first, in a ‘fighting fund’.”

Moore says: “In my experience, divorces done in the least time and at the least cost are marriages of short duration and where there are no children, where both partners already have independent incomes and don’t have that fear of how they’re going to survive on that money.

“Where it starts to get complicated is when there are children involved, and where one parent has been stay-at- home. Suddenly it’s a question of how am I going to survive financially after we split?”

She says partners can claim spousal maintenance, but there is a cost to that, both in lawyer time and accountant time. It may end in court, which could take months.

Know what you own. You need to start with knowing what’s in the pot, says Perry, whether it’s a car and a CD collection, or two homes, a business and some rental properties.

“We need to delve behind the financials a bit and we need some disclosure, some bank statements, and we need some valuations of properties, that kind of thing.

“And if people are then arguing about whether the property’s worth x instead of y, you’ve got different valuers all over the place, and it gets really expensive.

“If you’re off to court, if you’re in a full-blown ‘scorched-earth’, you’re looking at $70,000-plus each in legal fees.

“But if you’re doing it collaboratively, you can employ a joint valuer. Instantly, you’ve halved those costs and your legal fees are much, much cheaper.

Remove the emotion from the proceedings. The sooner you can get the heat and emotion out of what is essentially a financial discussion, the better it is, both emotionally and financially, says Moore. “The longer it drags on, the more it’s going to cost.”

Accept that life is going to be different now. Moore says the biggest thing initially she sees is people wanting to hang on to the lifestyle they had, even if they might not be able to afford it any more. An example of that is paying for private schools, or outings and holidays.

“It can have a huge impact on the newly-divorced person’s financial position. Sometimes they see their circle of friends and want to be able to do those things – shopping and brunches, but they might be using their capital to do it.”

Keep some retirement savings. KiwiSaver is part of relationship property, and over the years, as accounts grow into the hundreds of thousands of dollars, that’s going to be a huge factor in separating assets, says Moore.

“If you lose half of your KiwiSaver now, it will affect your compound interest giving you a much lower balance at retirement. It might be better to take a lower offer now to keep your retirement savings intact.

Get savvy with money

Both Perry and Moore have met women who aren’t aware of their family’s financial situation.

Says Moore: “It surprises me how many women are dependent on their husbands for finances and have no idea what their finances look like. They need to get savvy with their finances.”

Brenda Ward is the editor of JUNO investing and lifestyle magazine.

Source: “https://www.stuff.co.nz/business/100522159/divorce-does-not-have-to-be-expensive?platform=hootsuite”, Divorce does not have to be expensive, Brenda Ward, January 19 2018.

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