Divorce often inspires an immediate negative financial impact that can take years to overcome. Many people burn through their savings and must completely rebuild their finances after a marriage. The more contentious the divorce becomes, the more it may cost the spouses.
Although many people immediately picture a litigated battle in family court, divorce does not need to be an acrimonious process. In recent decades, divorce mediation has become increasingly common. Spouses sit down with a neutral third-party mediator to discuss any disagreements they have regarding divorce terms.
The mediation process puts spouses in control of the terms set and helps them preserve an amicable relationship if they must co-parent after the divorce. Additionally, mediation can help spouses avoid the financial devastation that often follows litigated divorce proceedings.
How can mediation help a divorcing couple preserve their nest eggs for rebuilding their lives after going their separate ways?
Settling out of court reduces divorce costs
The average total cost of a divorce can range from a few thousand dollars to tens of thousands of dollars. Disagreements on major issues that spouses must resolve in court are often the biggest contributor to the total cost of the divorce.
The expenses generated by litigation are often the most substantial costs incurred during divorce proceedings. Spouses must pay for the time in court, as well as the hours invested by their lawyers. The more issues that spouses must litigate in family court, the more they end up paying for the divorce process. While the services of a mediator are not free, the cost of their conflict resolution support pales in comparison to the likely costs generated by litigated proceedings.
In addition to reducing court costs, spouses who mediate also retain control over their financial arrangements, which can help them avoid the liquidation of assets when the market is unfavorable and other secondary financial consequences that may be the result of a litigated property division process.
Settling major disputes in private through mediation can help spouses to control their overall divorce costs and the final property division settlement. Those who want the best future possible after divorce and who worry about the costs involved may find that investing in divorce mediation helps them preserve more of their resources for rebuilding after their final divorce decree is handed down.