How to: Reduce the cost of separation

In addition to the emotional strain of separation or divorce the financial cost can also be high. I’ve talked before about the impact of dividing assets between two people on longer term fiscal goals but today I want to look at how you can lessen the cost of the separation itself.

1. Choose your lawyer carefully

While your first inclination may be to go out and hire a “big gun” to make sure you take your ex for every dollar, that's probably not the best way to go. The reasons for this are many but basically they can be summarised as: the family law system is not based on this adversarial approach and as such you may be throwing good money after a result that just cannot eventuate.

Instead, let your emotions cool and do your research to find the best solicitor for you: view firm websites, speak to family and friends for referrals, or contact your State or local Law Society. It is usually far more important to try and get the right personality than the hired gun.

2. Be honest with your lawyer

This may not seem to be a money saving measure, but in Australia there are rules making the disclosure of all relevant information between you and your ex mandatory which means that your lawyer is going to need the information at some stage anyway so being honest upfront is far more cost effective as it will save having to have multiple meetings with your lawyer.

Also, non disclosure of relevant information is one reason why a legal property division can be overturned in the future – so if you are honest you could be saving yourself a lot of legal fees in the long run.

3. Get some advice on the practicalities

Ask your lawyer about what practical measures you should be taking to protect yourself from other expenses – such as, whether it is recommended to close joint bank accounts or transfer utilities between you and your ex in accordance with who is using them. Getting the right advice on this step can save you lots of time and money in the future.

4. Try to negotiate an agreement

Once you have had initial legal advice regarding your rights and responsibilities try and schedule some sit-down time with your ex to see if the two of you can come to a basic agreement that can then be turned into a legal document by your lawyer.

Obviously this isn’t always possible – due to family violence issues or your ex refusing to participate – but if you are able to reach an agreement with your ex your legal fees are going to be much lower.

5. Keep communication to a minimum

Be efficient in how you interact with your lawyer: make sure you comprehend our advice and if not ask us again, jot down your questions and ask them in the one phone call or meeting, make a summary of documents that need to be gathered together or things that need to be done.