Divorce is a stressful and emotionally trying time for any couple, but it can have added layers of complexity if one or both of the spouses owns a business. If spouses are not aware of these extra wrinkles heading into the process, then they can make for an unfortunate surprise when going through divorce. A recent case involving the divorce of an Oklahoma oil and gas magnate highlights some of these issues.

First, there is the issue of valuing a company for the purposes of division. This will require experts to come in and testify as to the company's worth, and may require expensive financial analysis. The second major issue that business owners face is the loss of control of their company in a divorce. If they are forced to cede equity to their former spouse, or if they are forced to sell their equity interests because they need the cash, they may find themselves without a controlling stake in the company.

Valuing the Company

Service members in the U.S. military often experience extra strain on their marriages due to the stress of military life, especially during long deployments. Research by the RAND Corporation reveals that the military divorce rate exceeds the civilian divorce rate, and the risk rises higher with each successive deployment. However, a recent child custody case in Washington state revealed that the issues with divorce and deployments do not end once the divorce decree is finalized. A naval service member was issued a warrant for his arrest when he failed to show up for a custody hearing that his ex-wife had scheduled while he was deployed.

The Washington Case

The Washington case centered around a Washington-based submariner who was currently on deployment in Michigan. The submariner had primary custody of his daughter, and had left the daughter in the care of his new wife while he was deployed. The man's ex-wife filed a petition to change the custody order while he was serving in Michigan. The submariner naturally failed to appear, and the judge, who was unaware that he was currently deployed, issued a warrant for his arrest. Once the judge was made aware of the submariner's deployment, all proceedings were properly postponed.

Many people who want to lower their divorce costs end up focusing on their legal fees. While this is a good strategy, and efficient use of attorney time can definitely result in a cheaper divorce, people often miss out on other parts of the divorce process that they can use to control costs. A study by the British insurance agency Aviva found that many people end up spending extra money on luxury items and other lifestyle costs as a result of going through a divorce. Paying careful attention to these sorts of line items on a household budget can often be another way that people going through a separation can save money.

What the Study Found

Aviva's study revealed a surprising number of people splurging on post-divorce that they may not need. For instance, almost one in seven people who responded to the study reported that they took a vacation after their divorce. The average cost of one of these trips totaled nearly $3,200. About the same amount of people said that they responded to their divorce by purchasing some sort of new gadget like a computer or a new TV. The average cost of that purchase ended up being over $2,100. Picking up a new hobby after a divorce was an even more expensive endeavor. One out of every eight newly separated people spent on average almost $3,500 on whatever hobby they chose. If people are not careful, these sorts of hidden, discretionary purchases can really start to drive up the cost of their divorce.

A legal proceeding like divorce is a team effort. It requires lawyers, paralegals, clerks, and legal secretaries to work together to all help reach the best outcome, and one of the key members of the legal team is the client themselves. Naturally, this can be a bit of a difficult adjustment for the client, since data from the United States Census indicates that the overwhelming majority of people going through divorce have never done it before.

Fortunately, this post highlights a few strategies that people can use to be more effective divorce clients like staying organized, taking an active role in the process, and keeping a level head. Divorce clients using these strategies can streamline and speed up the divorce process, which often means keeping their legal fees lower.

Stay Organized 

A recent spate of cases involving courts citing businesses for the unlicensed practice of law highlights the importance of using a licensed attorney during the divorce process. A recent case on this issue comes from the Ohio Supreme Court, but it is a problem that can occur just as easily in any other state.

State governments closely monitor the people who practice law to ensure that they have the training to competently represent others in court. Those who are not properly licensed and trained can end up making mistakes that cost their clients. That is exactly what happened in the Ohio case that ended up with the company making a mistake that left their client's divorce papers useless. Consequently, it is important for discerning people seeking a divorce to ensure that they use a properly licensed attorney if they want counsel during the process.

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