Divorce Mediation Can Help Couples in Debt

It’s hard not to hear some story about the economic turmoil that’s hit all of us very hard this year.  Housing prices plummeting and consumers up to their eyes in debt, it’s quite a bit to take.  Then to divorce on top of it all and incur $27,000 to $78,000 of additional debt can be too much.  Sad but true, that is what the average attorney-driven divorce costs these days.  Have a look at our Recent Articles section of the Equitable Mediation Services of New Jersey website where you will find a number of pieces discussing this very topic.

You and your spouse could try and wait it out, sleep in separate rooms and see if the economy turns around but the pundits predict that won’t be until at least the end of 2009.  Can you really afford to wait that long emotionally?  Another year of living like this is not going to do anyone any good: you, your spouse and your children.  There is a better way and it’s called divorce mediation.

We have discussed the various benefits of mediation on a number of occasions and saving a substantial amount of money is one of them.  The average mediated divorce costs about $7,000, a full $20,000 to $71,000 less than one involving attorneys. And while yes, you will be spending money that may be hard to come by these days, it will be substantially less than if you chose to contact attorneys and have them handle your divorce for each of you.  But this is not the only benefit for couples in debt.

During mediation, you can outline in your agreements how you want to handle items such as debt, mortgages, etc. to make sure you get an agreement that works for both of you.  There are many creative ways we can work these things through and given the current housing crisis, the need for such creative solutions is substantial.  You are not alone – more often than not, a couple’s house is worth less than what they paid for it and in many cases, worth less than what they owe on it.  We call this “being underwater” and it’s all too common these days.

Now call me the eternal optimist but I do believe housing prices are going to turn around.  Even if you’re getting a divorce, why sell your house now and lose money on the sale?  Your mediator can draft a clause in your Memorandum of Understanding that outlines the special conditions surrounding the sale of your house or any other assets to maximize your collective gain from them.  If you’re in debt, you will need all the gain you can get.

So before you go another year wondering if this will be the year you get out of debt or a marriage that just isn’t working anymore, consider divorce mediation.  And if we can be of any help, please feel free to contact us and set up a free, no obligation consultation at one of our six office locations in NJ where we will help you understand why divorce mediation is the smarter way to divorce.