Ending a marriage can be costly, in terms of stress, finances, time, and emotion. According to some estimates, the average divorce has legal fees of around $15,000, and there are many other expenses that may be associated with a particular divorce. Estranged Virginia couples might also be faced with the costs of changing residences, replacing personal property, and paying alimony or child support. A personal loan may make sense for some people to cover some or all of these expenses.
Personal loans can be a viable option for some because they allow for the borrowing of large sums, they often do not require collateral, they can be repaid over time and they have a fixed schedule for repayment. Moreover, the borrower has control over the funds; if the money is borrowed in one spouse’s name after the couple has separated, generally speaking, the other spouse has no control over what happens to it. Using other assets, money from a shared savings account, for example, may cause problems.
There are also some potential negatives to consider regarding using personal loans for divorce. There are of course interest costs to consider. It can also be difficult for many people to qualify for a personal loan, depending on factors like credit history and income.
People who are facing the end of a marriage might find it advisable to meet with an attorney and learn what the best approach might be when it comes to dealing with such divorce-related issues as parenting rights, property division, and child and spousal support. In most cases, negotiating an agreement can be quicker and less costly than having a judge make these decisions after protracted litigation.