In most cases, divorces can be expensive. Some require complex child custody, child support, alimony, or property division, while others are pushed to the brink of hostile court litigation. It is imperative to completely understand the issues you face in a divorce and allocate your finances accordingly to have the most cost-efficient divorce possible.
Common issues that typically make divorces more expensive include the following:
- The abundance of large financial assets. Divorces which involve a complex amount of financial assets or a business venture which requiresan accurate evaluation by financial experts. However, the sale or transfer of financial assets can be associated with tax implications for one or both parties, requiring the assistance of a tax professional as well. Paying these experts can be very costly.
- Disagreement over child custody. When a child becomes a topic that erupts into conflict in a divorce, there are some expenses which will likely accumulate, such as having the court appoint an attorney ad litem, a guardian ad litem, or an amicus attorney. Other expenses include counselors, therapists home studies, and other professional services.
- Failure to cooperate with mandatory information exchanges. Typically, both parties in a Iowa divorce are required to disclose information and documents to each other. Failing to comply with those requirements can result in more expenses to be paid on both sides. For example, if one party refuses to produce the requested documents, the other party can file motions to compel the requested party to produce their documents, leading to delays in the discovery process and additional attorney’s fees, as well as hiring investigators or other experts.
- Drag the divorce out until court litigation. Most divorces end in settlement through mediation or informal negotiations between the parties. The costs of court litigation are significantly more expensive and even more so if you end up losing more on the final settlement.