Higher levels of income can translate to more complicated divorce proceedings. Couples who have established a relatively high standard of living during marriage have more at stake when they divorce. More opportunities for financial misconduct exist, including dissipation or intentionally hiding marital assets.
There may also be more conflict regarding what assets are subject to division and how the spouses should split their property and debts. The costs associated with a high-income divorce can rapidly spiral out of control if spouses aren’t cautious. Those who want to control their divorce expenses in a high-income, high-asset divorce may need to plan carefully.
Explore cost control options
The average cost of divorce varies from under $5,000 in some cases to well over $20,000 in others. Factors including the amount of conflict and how many issues the spouses litigate determine how much the divorce ultimately costs.
In high-asset divorces, spouses may require the assistance of forensic accountants and similar professionals to ensure a fair property division process. While those expenses do contribute to the overall cost of divorce, they can limit long-term divorce expenses by helping spouses resolve their disputes outside of court.
When a professional assists with asset valuation, for example, the spouses may not feel the need to litigate their disputes about how much real property or business holdings are worth. In some cases, partnering with a parenting coordinator can help divorcing parents arrange for appropriate custody and support terms without litigating.
They may even hire alternative dispute resolution professionals to help facilitate a settlement outside of court. Provided that spouses can agree on terms for all of the major issues in their divorce, they can pursue an uncontested divorce filing. Typically, uncontested divorces cost substantially less than litigated ones.
As a general rule, the more time that spouses spend in court, the more they end up paying for the legal end of the marriage. Higher-income spouses preparing for divorce may need to embrace the idea that the smart use of resources early in the divorce process can save them money in the long run.
Securing support from a family law attorney can help a spouse facing a high-income divorce understand what the process entails and determine what options might help them limit their costs. With the right approach, a high-income divorce does not have to be a high-cost divorce.