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Understanding Legal Separation vs. Divorce

Divorce can be costly, with legal fees adding up as both partners may need attorneys to handle paperwork, divide assets, or determine child custody. Legal separation might be cheaper, but costs vary by state and depend on whether you and your partner agree on the terms or need legal intervention.

How Do Separation and Divorce Differ?

An informal separation doesn’t involve attorneys or trials. Simply living apart isn’t legally binding; debt or property acquired during this time is considered marital property. Legal separations, available in some states, work similarly to a divorce. You file a petition with the court and work on a separation agreement. If you can’t agree, the court creates a final agreement covering debt and asset division, child custody, child support, and alimony.

Divorce involves filing a petition and possibly other documents with the court. If you agree on the terms, you can create your own marital settlement agreement (MSA) and file it with the court. If not, your divorce goes to trial, where a judge determines your settlement. After a certain time, your divorce is declared final.

Both divorce and legal separation create legal agreements you and your partner must obey. The key difference is that a divorce legally ends your marriage, while a legal separation does not.

Pros and Cons of Legal Separation vs. Divorce

Pros of Legal Separation

• Stay on your partner’s health insurance, file joint tax returns, or receive Social Security survivor’s benefits or pension.
• Not responsible for debts your partner incurs during a legal separation.
• Allows a non-U.S. citizen partner to stay in the country.
• Can be reversed if you reconcile.

Cons of Legal Separation

• Can’t marry someone else while legally separated.
• Your partner is considered your next of kin unless stated otherwise in an advance directive or will.

Pros of Divorce

• Free to remarry.
• Your former partner can’t inherit your assets or make medical decisions for you unless specified in your will or advanced directive.

Cons of Divorce

• May need attorneys or go to trial if you can’t agree on terms, which can be time-consuming and expensive.
• A non-U.S. citizen partner may be deported.
• Divorce can’t be reversed once final.

Is Separation or Divorce More Expensive?

The cost of a divorce or legal separation depends on whether you and your partner can agree on the terms without hiring attorneys or going to trial. An uncontested divorce, where both parties agree on terms, is usually the least expensive. Costs can range from $500 or less for a do-it-yourself divorce to $20,000 and up if attorneys or trials are involved. Legal separation costs are similar.

How to Save Money on a Divorce or Separation

Consider these alternatives to save money:

• Find free or low-cost legal aid.
• Ask about payment plans for attorney’s fees.
• Have your partner pay your attorney fees if possible.
• Find a flat-fee attorney for specific tasks.
• Shop around for affordable representation.
• Ask to waive the filing fee if you can’t afford it.
• Complete and file documents yourself to cut costs.
• Get organized to reduce the time your attorney needs to spend on your case.

Other less expensive divorce options include summary divorce, arbitration or mediation, and online divorce services.

Planning Your Financial Future

Price shouldn’t be your primary concern when choosing between legal separation or divorce. Your settlement will shape your future finances, so aim for the best possible outcome. Good credit can help you rent an apartment, get credit or loans, and take other steps toward living solo. Close joint accounts or remove your name from those that are your ex’s responsibility. Check your credit score before applying for credit and sign up for free credit monitoring during this transitional time.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial future with confidence.

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