It is a decision that you thought long and hard about. You want to divorce your spouse.
While many questions swirl inside your head, you ponder them carefully and wonder how to answer them while moving forward. One such question: How will I pay for my divorce? In thinking about financial resources, understand that some are readily available, while other funds may come from unexpected places.
Credit cards, loans and retirement accounts
Paying for a divorce is a dilemma from some people, especially those who may have financial challenges. Here is a list of potential sources that may help pay for a divorce:
- An estranged spouse: In some states, including Florida, a judge may order a spouse to pay a portion of the other’s attorney’s fees. This will happen under certain circumstances such as when a spouse has limited funds. An example may be one spouse is the sole income earner in the family, while the other stayed home and took care of the children.
- Credit cards: A number of law firms accept credit cards as payment. You must understand, though, that your credit card debt will increase considerably. To remedy that, make consistent and extra monthly payments.
- Money from bank accounts: If you have enough money in your checking and savings accounts, please use them. Also, consider funds from a money market account. Finally, it may be possible to take funds from a joint account.
- Loans from friends and relatives: It cannot just be anybody to lend you the money. Think carefully as to whom you may approach. The best candidates know you and about your situation and are empathetic and non-judgmental.
- Retirement accounts: A divorce is among the few times someone may remove money from a retirement account early and not have to pay the 10% withdrawal penalty. It is best to only do this if you run out of other financial options. Afterall, that money is earmarked for retirement.
A divorce will lead to certain financial challenges. Figuring out how to pay for a divorce is one of the first. With some planning and thorough consideration, you can achieve this.
Preparing for a new life
Finding the right financial sources to pay for your divorce is possible. The money may come from a variety of places, some of which are close at hand. These are decisions that must be made and help prepare you for your new life.