Category : Paying for Divorce

Home»Archive by Category "Paying for Divorce"

Women’s Household Income Actually Falls In Divorce, Report States

divorce statisticsIn a new report from TheWeek, it was revealed that divorce can have a detrimental effect on the income of many women, who either file for divorce or have spouses who file.

Beyond the “emotional toll” that divorce can take, the news site notes that it can cause a decline of 41 percent in household income for females, while males experience a 20 percent drop. The original numbers come via 2012 Government Accountability Office findings.

This seems to contradict previous research that shows women breadwinners to be the most common filers.

In our own studies reviewing do-it-yourself divorce cases, women filers have averaged $10,000 more per year than their exes.

Factoring The True Cost Of Divorce

According to TheWeek, if one is heading for a split, it’s best to plan accordingly. Even a simple, amicable divorce — such as a DIY divorce — “is unlikely to cost less than $5,000 per person,” the site noted, adding that fees double when “child custody is a factor.”

Got a business?

According to the report, couples spend close to $20,000 on divorce in these cases.

“Despite those costs, don’t be tempted to skimp on the services of a financial specialist to help you through the ins and outs of taxes, retirement plans, alimony, insurance, and credit issues,” site contributor Sergio Hernandez added.

As For The Income Decline…

While it wasn’t clear why women saw twice the income reduction of men, it could have something to do with providing for most of a child’s needs. While men are usually ordered to pay child support, it typically isn’t enough to compensate for the full expenses, so women find themselves picking up the slack. There’s also the “deadbeat dad” factor. While that can lead to legal troubles for the man as well as court-ordered payouts, it doesn’t always translate to the woman seeing any extra money.

Additionally, any time you see the size of a household shrink, that can lead to higher tax liabilities and adjustments. (All the more reason why a good financial specialist is invaluable to the divorce process.)

Do you find it surprising that women see less household income post divorce than men? What do you think the contributing factors are?

Get Divorced On Other People’s Money

money for divorceThe average cost of a divorce in America is estimated to cost between $15,000 and $30,000; the scary part of this estimate is that the figures represent the average cost of a divorce and not the cost range of a divorce. For people long-embroiled in a divorce battle, this figure may seem like but a pleasant memory in comparison to the figure they are currently facing.

It is no secret that divorces can be the nastiest experiences in the world, especially when robust finances are involved. But what about those spouses whose separate finances are less than robust? What chance do they stand in getting a fair shake in this expensive legal system? These are the very questions that birthed a new business sector called divorce financing.

People Will Finance Your Divorce?

In case you were wondering if you had missed something in the business world, divorce financing is not a business with a long history. In fact, divorce financing has only been around since 2009. Currently, there are two major players who are solely in the divorce financing market, BBL Churchill and Balance Point, and they each take a unique approach to divorce financing.

The Church of Divorce

BBL Churchill basically loans clients the money needed to cover all the legal expenses incurred during their divorce, and any necessary living expenses. After receiving a money retainer, BBL Churchill will loan divorcees anywhere from $2,000 to $1,000,000 if the divorcee meets the requirements.

To take out a loan with BBL Churchill, a divorcee must be represented by a qualified divorce attorney, have a joint net asset pool of $400,000 or more, and must have been married for at least 12 months to the divorcing spouse.

The BBL Churchill loans have a fixed interest rate for the term of the loan, and do not have to be paid back in monthly increments. The loan is repaid in its entirety by the divorce settlement.

Finding Balance in Divorce

Balance Point Divorce Funding invests in clients’ divorces, rather than loaning money to clients. The money from Balance Point is used for hiring attorneys, forensic accountants, and asset investigators, and for the client’s necessary living expenses. Balance Point usually invests about $200,000 in their client’s divorce.

To be funded by Balance Point, clients must have combined marital assets of $2 million or more, must not have marital assets affected by pre- or post-nuptial agreements, and be in need of $200,000 or more in funding.

If Balance Point decides to invest in a client, the invested money will be returned in full and more upon reaching an agreeable divorce settlement.

With the cost of living inching up each year, it’s no wonder divorce financing and other legal financing became a thriving new market. Just two years ago, legal financing companies were estimated to have $1 billion invested in clients’ legal actions. Divorce financing may just be the future of divorce in America; we only hope other divorce financing companies that crop up operate ethically.

If you were in a divorce with a spouse who out-earned you, and you needed money to get a fair settlement, would you hire a divorce financier?

Financial Life After Divorce for Women

When I was a young teenage girl, a nice older lady who was working at a grocery store got into a brief conversation with me about college education. She said, “Make sure you get a college degree to put in your back-pocket, in case you end up having to fully support yourself.” I didn’t find out the details of her life, but it’s probable that she was warning me to protect myself against a situation in which she had found herself entangled.

Rewind to about 50 years ago. The reality was most women didn’t think too much of careers or earning a living because that was, and perhaps still is in certain people’s view, the sole responsibility of their husbands. But as time went on from that point, divorce went on the rise. So has the rate of women receiving college degrees and entering the workforce.

Frequently for women, filing for divorce means more changes in lifestyle than separating from a lover– it means taking charge of their financial lives and becoming independent. These ladies are in good company, since the trend of women in the workforce is on the rise globally, divorced or not.

Bringing Home the Bacon

The cost of living is an expensive feat (an understatement for those residing in places like California or New York City). Those going through the divorce process would also agree, which is why it’s not only important to find ways to lower the cost of divorce, but also make sure you are able to support yourself as a newly single person with one lonely income.

Financial independence is increasingly important for women, who are still in the process of obtaining equal status and pay within the male-dominated work environment. They are making significant strides, as of late, and are predicted to do so even more in the near future.  Not only are 4 in 10 global workers female, an expected 1 billion more will become paid workers within the next ten years.

Educational feats provide similar and even more impressive statistics that show the increasing presence and potential for women in the economy. Outshining men within the developed world, 6 out of 10 college diplomas are earned by women. It seems the encouragement of the grocery store lady and others like her has worked.

Why Female Breadwinners Are Necessary

The continually high rate of divorce in the last of half of the 20th, and the beginning of the 21st century means women who are left single, and many times with children, are no longer dependent on men for their own sustenance. On top of this fact, it appears rare in the current economy to see even a marriage-intact household fruitfully surviving on only one income. Women are stepping up to the plate, not only for themselves but for the sake of economic progress within the American home and worldwide.

Dealing With Blindsided Divorce

200227110-001Most people have been through unwanted breakups and more or less quickly recover, but what about unwanted divorce? What is the best way to cope with being so traumatically blindsided? Actually coping with it is a good start. The hard fact is, the divorce process will usually progress whether you want it to or not, if it’s what the other spouse desires. No amount of denial or pleading will change that, unfortunately.

While if there is indeed a legitimate chance to salvage the marriage, it may be worth a shot, it’s important not to postpone the inevitable. Doing so would only serve to make cutting ties more of a hassle, both emotionally and financially. The quicker and the more smoothly you can maneuver through the practical proceedings, the easier it will be in the long run to find relief from the emotional pain and find a happier future.

Step by Step, Day by Day

Family lawyer and author, Alison Heller, explains the importance of blindsided divorcees to both deal with their conflicting feelings and take proper action, instead of sticking their head in the sand, ostrich style. Referring to a client who didn’t want his divorce to happen, she warns about the results of delaying legal steps: “Greater litigation costs and the racheting up of acrimony between them, which would undoubtedly increase tensions for their two children, as well as leave less money for their savings and household budgets.” As for helpful emotional steps, she advises:

  • Salvage, if reasonably likely: The end of marriage is never something to be taken lightly, especially if it is indeed salvageable. If there is any reasonable doubt the marriage is not over but redeemable, it’s important to allow the possibility to unfold. To allow it, it’s also important to allot space for you and your partner to weigh which path is best, reconciliation or moving forward with the end.

  • Find out the why’s of your resistance: If the end is inevitable, it helps to find out exactly why you are holding on to something that has already slipped away. Sometimes you may think the love is salvageable when it’s not, so it’s important to face the fact and the heartbreak that comes with it.  Otherwise, reasons could range from religious beliefs to wanting to stay together for the kids. Understanding why you are fighting the divorce can help you take steps to address those concerns, find ways to alleviate them, and let go of your spouse.
  • Move Forward: Assess what your immediate actions should be regarding the legal and financial steps to safeguard your interests. Like the emotions involved, the external ramifications of divorce are very real and pressing, needing equal attention and care.

Finally, the blindsided can find peace in the way time can only heal, once they have moved forward. Dealing with the hard reality of filing for divorce is a test of both personal resilience and faith that things will get better.