More Americans seeking loans to pay for divorce

| Jan 8, 2021 | Divorce

It seems as though every significant event in life costs money – including birth and death. Some expenses are inevitable, but many of these major life events don’t necessarily need to cost as much as they often do. One such event is divorce.

America is facing economically tough times right now, which both increases the risk of divorce and makes it harder to pay for. For these and other reasons, there has been a sharp increase in the number of Americans seeking “divorce loans,” or loans used to finance a divorce. Nationally, inquiries into divorce loans has increased 62 percent. Here in Florida, interest in divorce loans has jumped by 71 percent.

Should you consider a divorce loan if you are about to go through a divorce? That’s a question only you can answer based on your knowledge of your own finances. However, we’d like to provide some money-saving alternatives that you may not have thought about.

Reducing expenses by increasing efficiency

Paying for quality legal representation is a wise decision and could end up helping you get a larger settlement. And you can save money while working with a good attorney if you can keep billable hours to a minimum.

If you and your spouse can negotiate in good faith and avoid unnecessary conflict, you may be able to work out your differences through mediation or collaborative divorce rather than traditional litigation. These alternatives tend to lead to resolutions more quickly and without numerous court appearances. That can mean a quicker divorce that is less expensive and less contentious.

Filing uncontested divorce

There are (somewhat rare) instances in which divorcing couples either agree on all terms or have no significant assets or issues to dispute. If nothing needs to be worked out other than the legal motions themselves, you can pursue uncontested divorce. You’ll still want to work with an attorney to ensure that everything is handled correctly, but this is usually the fastest and least expensive divorce option for those who qualify.

Final thoughts

Thankfully, Florida is not listed in the top 10 states with the most expensive average divorce costs. But still, divorce can be a significant financial investment, and some people may need a divorce loan. Before you make any major decisions, however, please discuss your case with an experienced attorney to get a better sense of your options and likely expenses.