However necessary it may sometimes be, divorce can be expensive. The previous installment of this two-part blog series provided some options you have to save money on your divorce, which can be important to your life afterward.
This part continues with more ideas from Forbes on how you can avoid spending more money than necessary on your divorce.
Avoid using a QDRO
A Qualified Domestic Relations Order is a way of having the court divide up your retirement accounts. It can be less expensive if you and your soon-to-be ex-spouse can divide up the retirement accounts yourselves. There are several options available to you:
- Roll over 401(k)s into Individual Retirement Accounts; you do not need a QDRO to divide IRAs
- Swap retirement accounts for another asset, e.g., you keep the house and your spouse keeps the retirement accounts
- If you both have retirement accounts and the savings in each are roughly equal, you can agree that you will each keep your own account without bothering with a QDRO
Avoid professional appraisals
Anytime you have to hire a professional to tell you the value of your assets, it costs you more money. There are resources available to you for little or no money that you can use to determine the value of your assets. For example, to determine the value of a vehicle, you can consult a used car guide, such as the Kelley Blue Book.
Avoid going to court
Divorce litigation is expensive, partly due to the time it takes. If you and your spouse can find a way to settle out of court, you can save a lot of money.
While you are looking for ways to save money on your divorce, remember to balance this with protecting your own interests.