Budgeting For Battle: Understanding The Financial Implications Of A Contested Divorce In New York

Going through a contested divorce can be emotionally and financially draining. This is especially true in New York, where the divorce process may be lengthy and complicated, making the financial burden even more difficult to manage. For this reason alone, many couples try to put off divorce for as long as possible.

When dealing with a difficult divorce, it is important to have a clear understanding of the potential costs involved. It is essential to fully understand the divorce laws in New York and how they apply to your situation. You should also consider the financial difficulties associated with a challenging divorce. Having this information will better equip you to handle the challenges that lie ahead!

If you are going through or considering a contested divorce, knowing how it will affect your finances can help you protect your long-term interests.

What Is A Contested Divorce?

A contested divorce is a situation where the two spouses are not able to agree on all or any of the significant issues, such as custody arrangements, the distribution of property, and the amount of spousal maintenance (alimony) to be paid. A contested divorce can be a lengthy and costly process; an uncontested divorce, on the other hand, is relatively simple and can be completed for much less. However, not every couple is able to see eye to eye and work collaboratively, so an uncontested divorce is not always an option.

Factors Impacting The Cost Of A Contested Divorce

A number of factors can affect the cost of a contested divorce in New York. Divorces, like marriages, are not all the same. As a result, the cost of a contested divorce can vary depending on the unique circumstances of the case. Some of the primary factors that can influence the cost of a contested divorce include:

1. Length of the divorce: This is one key factor. When the parties’ disputes drag on, legal fees proportionally increase. In the world of law, time is money, so the longer it takes to settle a case, the more expensive it will be. For instance, if the parties are at odds over child custody, this could lead to drawn-out negotiations and court proceedings, which would increase the cost.

1. Level of complexity (of assets and more): When spouses are high-net-worth individuals, or business owners, or have multiple real estate properties they own together, separating their assets fairly can be more complex and contentious, which can increase the time and costs of a contested divorce.

1. Choice of attorney: The clients’ choice of attorney can have a significant impact on the cost of a contested divorce. Highly experienced and competent attorneys may charge a high fee, but they can save money in the long run by achieving better outcomes. In contrast, hiring inexperienced or unskilled lawyers is likely to result in a number of costly mistakes and a generally negative outcome in the proceedings.

Attorney Fees And Legal Expenses

When going through a divorce, it is important to budget for the costs of hiring a good lawyer and other legal fees. The costs can vary greatly depending on the complexity of the issue and the lawyer’s hourly rate. As with most things in New York, attorney hourly rates are higher than the national average.

When hiring a lawyer, it’s important to have an open discussion regarding fees and payment options beforehand. These questions cover hourly rates, retainer fees (the upfront payment required), and any additional fees related to your divorce, like court filing fees or expert witness fees. Your lawyer should be able to provide you with a reasonable estimate of your case based on their experience and the facts and circumstances of your case.

Make sure to document all lawyer interactions and consider tracking your expenses using a spreadsheet or another budgeting tool. This allows you to calculate and monitor all expenses prior to, during, and following your divorce process. These products will help you get emotionally and mentally prepared for the costs of your legal representation.

Aside from attorney fees, you might encounter other legal costs. For instance, if you need to collect evidence on your spouse’s income and assets, you might need to enlist the help of forensic accountants. You could consider hiring private investigators or other experts to locate the other individual involved in your divorce or other legal matters, like finding a missing child or assets. Of course, the more professional witnesses you need to hire, the higher the cost will be.

Child And Spousal Support Payments

One of the key financial issues in a contested divorce is child and spousal support. In New York, there is an exact formula for determining child support; the state uses a formula that takes into account the income of both parents, the number of children, and other relevant factors. Battles over child support can be involved and expensive, leading to more court costs.

Spousal support, sometimes called alimony or maintenance, is another significant financial piece of a contested divorce. Courts in New York can order temporary or permanent maintenance for either spouse depending upon such factors as the length of the marriage, each spouse’s earning capacity, and the level of living during the marriage. Disputes over spousal maintenance can have a substantial impact on the financial outcome of a contested divorce.

To properly plan for your spousal and child support payments, you must first ask your attorney to estimate your potential liability based on the information at hand. You must be fully aware of your financial responsibilities with regard to child and spousal support. You should think about the possible effects of certain decisions and how they can affect your financial plans and objectives, such as maintaining your current standard of living, supporting your children’s college education, and saving for retirement.

Division Of Assets And Property In A Contested Divorce

The distribution of assets and property is often a contentious issue in a disputed divorce. In New York, an equitable distribution approach is followed, meaning that marital property is divided in a fair but not necessarily equal manner. Knowing how the court determines this division can assist in navigating the financial implications involved. During the equitable distribution process, the court takes into account various factors, including:

• the length of the marriage,
• the contributions of each spouse to the marital property, and
• the future financial needs of both parties.

It is crucial to gather all necessary documentation and evidence for assets, such as real estate, bank accounts, retirement accounts, investments, and personal property, to ensure a just division.

You should work with your attorney to list and assess all marital assets in order to make an informed decision about how to divide them.

Additionally, it is important to consider the potential tax consequences of specific assets, such as retirement accounts, and seek advice from a financial advisor if necessary.

Properly assessing asset values and understanding potential tax implications can aid in making informed decisions during negotiations or court proceedings.

Cost-Saving Alternatives To A Contested Divorce

While a contested divorce can be costly, you could save money and have more control over the outcome by using one of the alternative divorce processes—mediation or collaborative divorce. Both mediation and collaborative divorce are generally more affordable and less time-intensive than contested divorce.

• In mediation, the parties get together with the mediator—an impartial third party—and attempt to reach a fair resolution to the conflict.
• Collaborative divorce involves each of you working with your attorneys to settle the issues together outside of the courtroom. Collaborative divorce tends to be less combative, and it can save time and money relative to contested divorce.

If you can, try to talk your spouse into participating in one of these procedures. It could help both of you move forward more amicably and save you both time, money, and heartache.

Get New York Family Law Group In Your Corner

However, again, a contested divorce sometimes is the right option. Just because it might seem best for everyone when things are amicable doesn’t mean that you should always agree on everything. Sometimes, there are things that are way too important for you to give up on or compromise on. In such a case, a divorce attorney can fight for what is important to you and not be afraid to advocate for your rights at the negotiation table or in court. When seeking legal counsel for a divorce, nothing beats experience when it comes to obtaining the results you deserve to move forward with confidence. Contact New York Family Law Group today to learn more about the services that we offer and how we can help protect your interests.