Failure to do pre-litigation financial planning is a common mistake in Dissolution of Marriage cases. Following a few simple steps before filing for dissolution can save thousands of dollars, eliminating much stress and aggravation.
First, collect your family’s financial records for the last few years.
Copy all earning’s records (work pay stubs, cash receipts, client/customer payments, etc.); all bank, savings, and investment account statements; all records of the purchase and financing for your residence and investment real estate; all credit card statements; and tax returns including schedules and back-up. Store these copies at a safe location away from your residence or office – with a close trusted friend or family member.
Having these records readily available will save hundreds or thousands of dollars if you need your attorney to file expedited applications for temporary support and other orders. Also, having them handy can save thousands of dollars in discovery expenses if your estranged spouse does not properly respond to interrogatories and requests for production of documents.
Second, prepare a financial strategy and treasury for the first three to four months of your case. If you are not the high earner of the marriage, you may find yourself without funds or access to them if you wait until you file your dissolution or get served by your spouse.
Make a budget of your family’s normal living expenses, including food, housing, clothing, transportation, utilities, phone, computers and Internet, medical costs, etc. Don’t be extravagant or parsimonious. Add 10 percent to that figure. Multiply it by four months.
Budget the retainer for experienced family law counsel at $5,000 to $10,000, depending on the size of the marital estate, and how many complex issues (child custody, child and spousal support, characterization & division of property, etc.) you expect to be contested. If you have access to accounts with enough money to cover your family needs and the retainer, go there and remove at least that amount. Keep the funds safe; away from the family residence unless your spouse has moved out and you’ve changed the locks. Open a new account in your name at a bank not previously used by your family during the marriage.
These simple measures may seem obvious. However, it is surprising how many intelligent experienced people don’t protect themselves because of the mental and emotional strain created by the end of a difficult marriage. Taking these steps usually results in major savings and avoidance of stress and frustration.
For more information about support and other family law matters, contact the Reape-Rickett Law Firm at 661-288-1000. They are located at 25152 Springfield Court, Suite 100 in Valencia.