Mediation May Help Divorcing Couples Avoid Debt

With millions of Americans concerned over the state of the economy and managing their finances, the last thing many spouses want to worry about is the additional debt that may arise in the wake of a divorce. Dividing up property, savings, investments and other assets can be a tedious, time-consuming and extremely costly process, but spouses who can manage to work together may save themselves money.

According to the Wall Street Journal, the Institute for Divorce Financial Analysts conducted a number of studies on the costs associated with couples who go through a mediation process - allowing them to go through the details with a neutral professional - as opposed to leaving the details with a number of attorneys, witnesses and accountants. Their studies show that more than 11 percent of litigated cases cost couples more than $15,000 in contrast to the 1 percent of divorces that are mediated.

"Litigation can cost tens of thousands of dollars, take several months or even years, and is likely to disclose more personal information than mediated or collaborative divorces would," the Journal reports.

Separate studies also reveal that most Americans seek debt relief options, such as bankruptcy, for reasons that are beyond their control - such as sudden medical emergencies, a job loss or divorce.