Generally, a litigation budget is a document that outlines the estimated costs associated with a specific legal case. It helps attorneys and their clients plan and manage the financial aspects of litigation. It typically includes projections for attorney fees, court costs, expert witness fees, and other expenses related to the case. It can also include a timeline for expected disbursements and a strategy for mitigating costs.
There are many reasons why a divorce may cost much more than it ever should. Here are five of the costliest reasons:
- Requesting a Lot of Discovery: Attorneys can make divorce more expensive by requesting a lot of discovery, such as financial records, emails, and other documents, which require time and money to obtain.
- Going to Court: If attorneys are unable to reach an agreement outside of court, they may have to go to court. This will result in additional time and money being spent on the case.
- Arguing Over Minor Issues: Attorneys may argue over minor issues and attempt to get the best outcome for their client. This can lead to increased costs as the case goes on.
- Hiring Experts: Attorneys may hire experts, such as appraisers or accountants, to help them with their case. This can potentially increase the cost of a divorce significantly.
- Not Settling: If attorneys are not willing to settle and are determined to go to trial, this can significantly increase the cost of a divorce.
By requesting a litigation budget, all parties are held accountable, you will have an idea of the timeline of your case, and you can budget accordingly. This is why you need to know what your litigation budget is.
A litigation budget specifically for a divorce is a financial plan that outlines the anticipated costs associated with the divorce proceedings, including filing and court fees, attorney fees, expert witness fees, and travel expenses. The budget also sets aside funds for any other necessary costs that may arise throughout the process.
Five Benefits of a Litigation Budget for Divorce Clients
- Improved Visibility: A litigation budget can help provide clarity and visibility into the costs of a divorce process, allowing you to better assess the financial implications of your decisions.
- Improved Planning: It can also help you to plan ahead and anticipate what expenses may be incurred throughout the course of the divorce process. This is especially important if you are facing a contentious and/or high-asset divorce.
- Cost Savings: It helps identify where costs can be reduced or eliminated, thus resulting in cost savings. This can be especially beneficial if you are attempting to resolve your divorce on an amicable basis.
- Increased Control: A litigation budget can help you to gain a greater sense of control over your financial situation, which can be especially beneficial in a contentious divorce. You can also use the budget to negotiate better terms with your spouse.
- Reduced Stress: Lastly, it can help to reduce the stress that often accompanies divorce proceedings, as you can have a clearer sense of your financial situation.
Your litigation budget is an essential part of any litigation strategy. When you are interviewing attorneys, this should be on your list of questions. We will help guide you through every step of the process and provide expert advice on the best questions/subjects to present to your attorney based on your unique situation. We are experienced at combining your needs into a package that your attorney can understand and that can be presented to represent your case, specifically during negotiations.
For more information on how you can make the best use of time when discussing topics with your attorney, contact us.
Investment Advisory Services offered through Expressive Wealth, LLC. All investing involves risk, including the potential loss of principal. Market volatility may significantly impact the value of your investments. This communication is provided for informational purposes only and should not be construed as personalized investment advice or a recommendation of any particular security, strategy, or investment product. Information has been obtained from sources believed to be reliable, though not independently verified. This report does not represent a specific investment recommendation. The opinions and analysis expressed herein are based on Expressive Wealth research and professional experience and are expressed as of the date of this report. We recommend consulting with a qualified financial adviser to develop a strategy that aligns with your financial goals and risk tolerance.