By Matt Allen
Editor, DadsDivorce.com
It’s no secret a divorce isn’t cheap with the average case costing $20,000.
But there are certain times when a divorce can be financially advantageous, such as in today’s present economy.
Cordell & Cordell managing partner Scott Trout once told a news outlet he does not encourage divorce, but rather a man should not let a poor economy prevent an inevitable break up.
“In the stock market, you buy low and sell high. Why in a divorce would you divorce high and not low?” Trout asked. “What we’re trying to tell guys is, ‘Look, when you think you can least afford a divorce … might be the time to do it.'”
When the economy is booming, men are often dismayed they have to give up 50% or more of a high-valued asset, such as the marital home. So it may be less financially painful to divide the assets when the values are much smaller.
However, putting a house up for sale in a buyer’s market could extend the divorce – and your mortgage payments and financial exposure – even further if there are no takers. MSNBC suggests the least expensive solution is to allow one spouse to remain in the house and the other takes other assets to compensate for his or her share of the equity.
Many divorced dads use DadsDivorce.com’s Ask a Lawyer feature to learn about how their unemployment affects child support. With the national unemployment rate hovering between 9-10% and many more people underemployed or losing hours, judges are more sympathetic when the husband’s salary has been cut or he no longer is able to earn overtime or bonuses. The loss in income and earning capacity could lead to lower child support payments.
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BusinessInsider.com compiled a list of other beneficial times to follow through on a divorce:
When you have zero credit debt. As mentioned, divorce can be costly particularly in cases involving child custody. Taking on extra legal costs and maxing out your credit cards will leave you in a financially precarious situation.
When you have a healthy credit score. Though dads are always encouraged to never move out of the marital home, sometimes a judge will order it. In this instance, if you have bad credit, you will have trouble renting an apartment and perhaps even opening your own credit card that your wife does not have access to.
MSNBC advises if you are the one with the bad credit score, try to negotiate with your spouse to remain in the marital home and keep the vehicle in your name so you do not have to face creditors in the near future.
When the kids are headed to college. When minor children are involved, costs are exorbitantly higher because of child support and the fact that child custody battles typically cost much more than the average divorce.
MSNBC says many student aid plans only require including the income of the custodial parent when assessing eligibility for financial aid so a divorce before college may make your children eligible for student loans and grants they otherwise would not have been considered for.
However, just because you get a divorce after your children graduate from high school does not necessarily relinquish you from your financial duty to support them. In fact, in half the states, the courts have the authority to order parents to contribute to their child’s college education, or otherwise support a child past graduation from high school, under certain conditions or to a specified age.
That’s right. Courts can order a divorced parent to pay for costs (any cost, college or otherwise) of an adult child, when no court could order the same for the adult child of married parents. It is little more than state-mandated child support for adults.
While divorce is not encouraged, if you feel a breakup is inevitable, you may want to keep in mind the aforementioned situations that can help you decide when is the right time to file.
The divorce lawyers for men at Cordell & Cordell would be happy to sit down with you to explore the best timing options in your case to minimize your financial hit. To schedule an appointment with a mens divorce attorney, please visit CordellCordell.com.
