Couples who are splitting up are increasingly likely to discover nasty surprises about their joint finances. As a leading firm on family law, we like to help our clients by advising them on how to avoid getting into debt over their divorce.
So, we really wanted to address for our clients, how to avoid getting into debt for divorce.
Getting divorced can be expensive, particularly if court proceedings are essential to sort out provisions for children or to resolve differences over financial problems. Here are JMR Solicitor’s tips on how to avoid getting in debt for your divorce (and other family law matters too).
Try to avoid court proceedings
We advise family law and divorce clients to try to avoid going to court if they can help it.
There are four ways to resolve areas of disagreement, so please do explore those first.
2) Negotiation between your solicitor and your partners
1. Arbitration is the alternative to going to court and therefore cheaper
Instead of a Judge, an Arbitrator will agree on the outcome which is as binding as if made in court.
The advantages of Arbitration over the court proceedings are:
- The process is quicker, so you can resolve the divorce faster
- It is cheaper than going to court
- It offers more flexibility
- More privacy is granted than in court settings
- Permanency – the same Arbitrator will see the case till complete from beginning to end. Seldom does this happen in the courts process.
2. Don’t demand unrealistically
You must negotiate rationally and realistically. Don’t make it a personal feud of egos and bitterness. Instead focus on what is best for you and your family and accept that you may have to co-operate. It is guaranteed to be cheaper than going to court and in the long-term, less destructive.
3. Take independent legal advice if you are planning on taking a loan to cover legal fees
It is important to consider the plan for paying costs at the very start of the divorce case.
There are a cumulative number of lenders who will make funds available for legal fees. But be conscious that these loans attract arrangement fees and interest rates which will be higher than conventional bank loans and more akin to credit card loans.
We advise clients who are thinking of taking out such loans then they must take independent legal advice before signing a loan agreement.
We support our clients to find the best way to handle their divorce in an affordable way…
As a result, our clients will not find themselves at a drawback and we can safeguard that they have access to a whole array of options, giving them the best opportunity to present their case in the most robust way possible.