Divorce Financial Help - Finding Money During the Divorce

By J. Posner

If you are going through a divorce it is already probably obvious that financial problems seem to pop up and/or grow. Prior expenses like child care, transportation, food, utilities, rent or mortgage expenses often increase, sometimes significantly. Here are some common financial techniques as well as a brand new option to assist you in finding money and reducing expenses while waiting for your divorce to settle.

In almost all divorces where formerly there was the cost of the rent/mortgage and maintenance of only one residence, most commonly split between two incomes, you will usually end up with two residences, two rents/mortgages, and two sets of utility bills. If not planned for, this additional expense can become overwhelming.

When children are involved in a divorce, costs during and after a divorce almost always go up. Where once there were two parents able to take turns watching the children, rides to school, softball practice, and friends, there is now only one parent at a time designated to help. Forget about splitting homework duty, caring for children when they get sick, etc. People going through a divorce seldom consider the additional expense of the child care and transportation costs associated with the above as well as running the kids back and forth to the other parents home.

If the above seems familiar, then you are already asking yourself “Where do I find the extra money to pay for my increased expenses until the divorce settles?” or “How do I get financially stable during the divorce proceedings?” Here are a few ideas plus a totally new option to help guide you financially until the divorce settles.

1. This one is simple…reduce, reduce, reduce. Reduce your overhead expenses by reducing or eliminating expenses that are not needed. There is a difference between wants and needs. Do you really need cable, Tivo, to eat out, that extra latte, etc. Cut out any and all unnecessary expenses where possible.

2. Count your human assets: Parents, siblings, friends, fellow workers, church/temple members, etc. It is alright to open up and share that you are going through a divorce as approximately 50% of marriages currently end in divorce. Share your problems with people you trust and ask them for their assistance. You will be surprised how many people come forth to offer free or reduced day care for your kids, to run errands to take them to their softball game, music practice, etc. if they are taking their kids anyway, and more and more churches, temples, and community centers now offer support groups for divorcees and those going through divorce. It is important to always be gracious, thankful, and remember not to unload too much of your personal problems regarding the divorce on people who come to your help or they may become resentful and your saviors may soon find reasons why they can no longer assist you. You may also find friends, family, and contacts that can assist with handy work and maintenance if you are not qualified to do the work yourself and your budget does not allow you to hire someone.

3. Reduce or eliminate the legal costs of preparing and filing your divorce. Hopefully your divorce will be uncontested. If yes, they are fairly simple to do on your own for little money. You can even complete most of your divorce online at sites like www.DiscountDivorceOnline.com. Online divorces are nothing new and can save you thousands of dollars with the average divorce in the United States utilizing a lawyer costing $5,000 or more and an online divorce usually between $200 - $300. However, if your divorce is being contested or is very complex an online divorce may not be right for you and you may have to hire a good divorce attorney. Look for a referral to a good divorce attorney or seek divorce attorneys that offer a free initial consultation so you can get a feel to see if he/she is a good fit to represent your best interests during the divorce. The repercussions from a divorce can last years, decades, or even the rest of your life so make sure if you need a good divorce attorney you take the time to find one.

4. Access the equity you already have. A recurring problem during divorces is accessing equity and cash in property and formerly shared banking accounts, stocks, bonds, and other assets. Often, pending the divorce, access to the shared assets are frozen or inaccessible. Sometimes one of the spouses had complete control over checking and savings accounts and now refuses to relinquish the control until forced by the divorce decree. This can tie up funds you would formerly have had access to for many months and sometimes even years depending on the number of assets, types of assets like businesses and homes, contracts, and the difficulty you and your spouse have in agreeing to the divorce. Fortunately there is a new option available to many people going through a divorce. This new option is called a divorce loan or more accurately a divorce advance.

What is a divorce loan or divorce advance? A divorce loan, or divorce advance as they are referred to in the industry, is an advance against your portion of the family assets. So, for example, if you are to split a home, stocks, cars, and other assets worth a net of $50,000 between you and your spouse, your share would be $25,000. Though the assets may be tied up in the divorce proceedings, if you meet the necessary qualifications you might decide to take an advance of $2,500 to help pay for car repairs, a renters deposit, attorney’s fees, medical bills, school, or any number of other necessities. The average divorce advance ranges between $5,000 and $10,000 but can be much, much larger. More in-depth information on divorce loans and divorce advances is available at www.EZDivorceLoan.com

Other options to reduce expenses and increase cash of course exist during divorce proceedings. While things can become hectic and confusing during your divorce, it is important that you stop, evaluate your finances, quickly measure your options, and then take action as soon as possible before all of your best options are no longer available.

Go to Divorce Loan FAQ's or EZ Divorce Loan for more information on one of the newest and most creative forms of divorce financial help and for a list of other divorce resources.

J. Posner is a full time creative funding consultant with over five years experience helping individuals and businesses come up with creative financial solutions to some of the most complex financial problems.

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