12 March 2025
A divorce is not only emotionally challenging but can also be complex in terms of legal and financial settlement. Even when no children are involved, mediation can still be a wise choice.
This article highlights some advantages of mediation in divorce, focusing specifically on the financial settlement.
In court proceedings, control is handed over to the judge. Mediation, on the other hand, allows the parties to actively shape their agreement. It enables flexible financial arrangements that better suit individual needs and circumstances. This is particularly beneficial when significant assets are involved or when one spouse is an entrepreneur. Mediation provides room for tailor-made solutions, such as the buyout of spousal support or temporarily keeping a property undivided.
Dividing marital assets can have significant tax implications. The court does not consider tax consequences in a divorce ruling, but mediation does address potential tax effects in advance. It also provides an opportunity to optimize the financial settlement from a tax perspective.
If needed, additional advice can be sought from experts during the mediation process. These experts can provide written advice or participate in discussions. Parties can, for example, consult an accountant, tax specialist, or mortgage advisor together. This collaborative approach allows for creative financial and tax-efficient solutions that benefit both parties.
Another advantage of mediation is that it is usually completed more quickly than a court procedure. Additionally, mediation costs are shared between both parties, making it a more cost-effective option in most cases.
Do you have questions about mediation and whether it is suitable for the financial settlement of your divorce? Feel free to contact us.
