What Makes a Divorce so Expensive?
Expensive divorces are nothing new. Celebrities and other high-profile individuals are the ones who figure in such. It doesn’t matter how long a marriage lasts; in the right circumstances, the final settlement can reach six digits on occasion. As for more typical couples, five-digit settlements aren’t unheard.
Various factors can make a divorce pricey. Family law practitioners such as Connolly Suthers can vouch for this. But what are these factors that make a divorce so expensive?
A Costly Split
In Australia, it’s largely the same story when it comes to divorce costs. It can be as little as over $432 if there is a prenuptial agreement (and everything else related is handled well), or as much as millions of dollars. Estimates show that about one in three marriages in Australia ends up in divorce, and the costs can skyrocket quickly. Throughout the country, divorce costs can amount to as much as $6 billion a year.
Keeping Up With The Money
Various things cause separation expenses to balloon, but it can be prevented. For one, it pays to be a smart spender still even when the family is splitting up — and the kids are in distress. Parents may probably like to make it up to the children, by buying them whatever they want, which could naturally lead to upside-down finances. It’s important to keep in mind that a divorce splits up a previously two-income household. In turn, a divorcee must adjust finances accordingly and not splurge like they used to before.
Another (probably more complicated) method is keeping the trust. In a divorce, it’s easy to maintain an air of distrust between estranged couples. But the truth is, the level of conflict a couple has can affect the financial settlement. Trust issues apparently impair the ability to negotiate effectively. Somehow, this may benefit a childless couple because there is little chance of a split affecting an emotionally vulnerable family member. On the other hand, for couples with children, distrust doesn’t help the youngsters at all — not to mention the finances in the long run.
At the end of the day, there is one certainty when it comes to divorce finances: the more conflict and misunderstanding there is, the bigger the final settlement can get.