Divorce:
Legal Fees
A divorce can be costly if you hire a lawyer.
And if it turns into a court
battle, legal fees can get very expensive very
quickly.
Do you need a lawyer?
Since lawyer fees are usually
the biggest expense of a divorce,
if you can do without a lawyer,
or settle your divorce through
mediation, you most definitely
want to. But only do so if
you're absolutely sure you don't need
one.
Is your divorce a simple
one, with both spouses fairly
amicable and willing to reach
agreement? Or will you need litigation?
If you and your spouse are
able to agree, chances are
good you'll be able to handle
your divorce yourselves. You
simply split your common assets, file the
correct papers and, in some
states, go in front of a judge
to tell him why you are divorcing.
But rarely are divorces this
simple. Splitting assets alone
can be complicated. When you and
your spouse can't agree on
things together, instead of
litigation, consider mediation or collaborative
divorce, which helps
the two of
you work together with trained
professionals to solve the
problems of property division
and
custody arrangements. If you
can't agree, litigation will
become necessary. You definitely
want a lawyer for any kind
of litigation.
Even if you and your spouse
are divorcing on very cordial
terms, it can be hard to decide
what's fair for both of you.
A lawyer can be an advocate
to help you make tough decisions.
Reducing legal fees
The biggest step in reducing
legal fees
is to do as much of the work
as you can. Gather as much
financial information as you
can before you meet with an
attorney. His or her hourly
rate will be very expensive. You're paying
that fee for legal expertise;
you don't want to pay a lawyer
to search through your finances.
If you can, negotiate a fixed
fee for your attorney. Otherwise,
you can reduce fees by remaining actively
involved in your case and following
your lawyer's instructions
carefully.
Try to settle small
issues with your spouse without
the help of a lawyer. Lots
of tiny spats can lead to one gigantic
legal bill. Save your money
for the bigger battles that
may take some greater legal
muscle.
Stick to the tasks
at hand with your lawyer. As
you work with a lawyer, you'll
probably build trust with that person
and it might be tempting to "unload" some
of your feelings on him or
her. You really need to find
a friend you can confide in - someone
that isn't charging you by
the hour.
Don't try to use
a divorce settlement to punish
an ex. It will end up causing
more stress, more pain and much
more money in legal fees. Remain
diligent to make sure the settlement
is fair to you, but if you
insist on "sticking it to your spouse" your
lawyers will end up sticking
it to both of you.
Find a way
to communicate with your
spouse. There is a lot of emotional
stress involved with a divorce. There is
most
likely some anger involved
as well. But if you each
use lawyers to relay all communications
between you, the fees will
add up quickly. If you need
to, use alternative ways
to communicate such as e-mail
and fax. It takes some of
the confrontational
potential out of communicating
by phone or in person.
Before
a lawyer represents you,
you will need to sign a written
fee agreement. This is a legal document
explaining
the fees that your lawyer
will charge. Make sure
you
understand this document
and feel free to ask questions
if you don't.
Information you will need
Gather your paperwork into
one container, preferably
mobile, that will help
you be prepared and organized.
Included should be:
- Tax
returns for the past
five years
- Retirement account
records for both
spouses
- You and your spouse's
paycheck stubs
to show current income
and withholdings
- You and
your spouse's employee
benefit statements
- Copies
of all insurance policies
including
life, health, homeowners and auto
- Current statements for all bank
and brokerage
accounts
- Mutual fund
statements
- Copy of the
deed or lease agreement
on
your home
- Statements on all
outstanding loans,
including your mortgage
and credit
cards
- Employer stock
option plans
- Copies of wills
and trusts
- Copies of powers
of attorney
- Receipts for major
purchases
- A copy of
your estate plan
- Copies of
birth
certificates
and
marriage licenses
Depending
on what
is being
contested,
you may also
want to
keep records
for the
following:
A prioritized
list
of
assets you
want
to keep
Your children's
records,
including
how
much time
you
spend
with
them, the
activities
you
do together,
and
the
expenses
associated
with their
upbringing
Remember,
if you
have
your
finances
in order,
you
won't
have
to pay a
lawyer
to discover
this
information.
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