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According to The Ascent's research, the average cost of divorce was $12,900 in 2020. And that's just for the legal fees you must pay to formally end your union. You need to decide how to finance the cost in the best way possible.
Many people who are going through a divorce aren't sure where to start when it comes to securing financing for legal expenses. For a good number of those divorcing individuals, a personal loan can be the best approach to pay for the divorce.
Personal loans can be a good option to pay for divorce for many different reasons. Here are some of the benefits associated with using a personal loan to pay divorce costs:
Make sure you compare multiple lenders -- otherwise, you might get stuck with a high interest rate or hidden fees. The best way to compare loans is to get pre-qualified with multiple lenders. To get started, feel free to check out the list of our experts' favorite personal loan lenders.
Because of these benefits, using personal loans can be preferable to many other alternative sources of funding a divorce.
Of course, there are some downsides associated with using a personal loan to get a divorce.
The below calculator can give you an idea of the monthly payments on personal loans with different sizes, repayment terms, and interest rates.
As you consider the pros and cons of using a personal loan to pay for divorce, you also need to consider your alternatives. After all, if a personal loan is the only reasonable source of funds to pay for your divorce, getting one is clearly the right choice. But, if you have other options, you'll need to compare those other solutions to getting a personal loan.
Some of your other options to fund your divorce may include the following:
As you can see, in many cases, a personal loan is a better choice than these other options -- but it will depend on your situation.
Whatever approach you choose, try to keep borrowing costs as low as possible by looking for ways to cut costs during divorce -- such as negotiating on some issues outside of court.
And, be sure to shop around for the most affordable financing possible because you don't want to start your new single life with a bunch of costly debt hanging over your head.
Here are some other questions we've answered:
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
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