Divorce is difficult in so many ways and paying for it only adds insult to injury. The average divorce in the United States costs $15,000 PER PERSON according to an August 1, 2019 article in Business Insider, and the costs seem to increase every year. Costs include hiring attorneys, hiring mediators, court costs, expert fees, psychiatric evaluation fees and hiring private investigators. Every divorce is different and these costs can be reduced (for instance if you mediate rather than litigate your divorce).

How do you pay for your divorce when funds are already tight or if you have no access to money?

  1. SAVE. Many people think about divorcing for years before actually pulling the trigger. Planning for your divorce can lead to a more successful divorce in many aspects, this being one of them. If you don’t have income and you will be at a disadvantage because of that when it comes time to pay for divorce expenses, take small amounts of cash over time and put it into a secret fund.

  2. FAMILY/FRIEND LOANS. Although it’s hard to do, asking your parents or other family members, or close friends, for a loan is another option.

  3. CREDIT CARDS. Obviously, this is an expensive way to go and you have to have good credit to get the line of credit you will need. Building your credit should be a part of planning for your divorce.

  4. 401(k) LOAN. This can be a lower interest rate source of getting funds as compared to using credit cards.

  5. HOME EQUITY LOAN. Obviously, your spouse will have to be agreeable to this source of funding but if selling the home is part of the divorce plan, you know the loan will be paid off in the near future.

  6. COMMERCIAL LOANS. There are lenders out there who specialize in divorce funding loans. They will analyze your net worth to determine if the settlement pool is large enough to pay them back. This is a good source of funding for the non-moneyed spouse who has no access to marital funds and can help level the playing field so a fair, legally represented divorce, is possible. However, this type of funding is not available in all states. You can Google “divorce funding lenders” to find these companies.