If the reason you’ve been putting off your divorce is your fear of financial ruin, then you may want to keep reading.
Yes, divorce can be very expensive and is very difficult emotionally and life-altering, but it does not mean that it has to lead to your financial, social, or mental demise… really.
Many people find that they’ve spent too much money on their divorce (in hindsight), because they didn’t know what their options were, didn’t know who they could trust, made costly errors along the way, and didn’t completely understand the process.
The divorce process involves (too?) many professionals, decisions, documents, and deadlines — and it can be truly overwhelming — especially if it is your first time through it. So, it’s really important to bring on someone who is experienced and who you can trust to walk you through every step, explain the process, and provide trusted referrals.
The divorce process “highlights” generally include:
- Attorney/Mediator & Other Professional Fees
- CPAs, Business Appraisers, Real Estate Experts, Financial Planners
- Division of Property & Assets
- Co-Parenting Agreements
- Child custody evaluation and counsel
- Spousal and Child Support
It may be so tempting to go the traditional route (through litigation), because you’ve surely seen the ads everywhere, it feels like the easiest choice to make, and it sure seems like that’s how most people do it, right?
Though that used to be the case, nowadays, more and more divorcing couples, who have a reasonable relationship and an uncontested divorce, choose alternative routes to securing their divorce.
What are the alternatives to Litigation?
There are several alternatives to going the traditional route, and a growing number of couples seeking a divorce these days choose them over the traditional path.
Some couples choose to tackle their divorce themselves, do it online, or do a collaborative divorce (which involves each spouse securing their own attorney), while a growing number pursue the Mediation approach. For this article, we’re going to focus on what we feel is the most efficient and cost-effective option: Mediation.
Is Divorce Mediation a Viable Option?
What is it?
The divorcing couple comes together (live or virtually) to speak with a Mediator (this can be done together, or separately — depending on schedules and how able parties are getting along in the same meeting). They work with this neutral Mediator who helps both parties come to an agreement on all aspects of their divorce. The Mediator may or may not be a lawyer, but he/she must be extremely well-versed in divorce and family law.
What’s the Cost Difference?
Because a traditional divorce (litigation) involves an attorney for each party and a lengthier court-involved process, this route can rack up hefty fees.
Family Law Attorneys typically charge anywhere between $225-$400/hour plus the cost of filing fees,* leading to an average cost of a divorce of about $17,500. For more simple divorces, it can be as low as a few thousand dollars or up to as high as $38,000 for more complicated cases.
With Mediation, however, you can expect to pay thousands of dollars less in Mediator fees (compared to litigating attorney fees), though you should still expect to pay the filing fees on top of that.
Beyond the fee cost benefits, there are several other benefits to using Mediation over traditional litigation. The cons are few, but should be considered, if any of them apply to you, because Mediation is not the best choice for every situation. Because cost shouldn’t be the only factor you consider when pursuing a divorce, here are some of the other items to consider.
What are the Pros and Cons of Mediation vs. Traditional Litigation?
Pros
- Cooperative Environment
- Confidential Process
- Most Handled Outside of the Courtroom
- Flexible Settlements
- Trusted Resource Referrals (FPs, CPAs, etc.) are Provided by the Mediator
- Quicker Process (on average)
- Greater Control Over the Process and Settlement
- Often times, a better long-term relationship with your ex-spouse
- Usually, easier on the children, because the process is more peaceful.
Cons
- Contested divorces may not be an option, but Mediators are sometimes able to work through issues with the couple and still reach agreements.
- If couples are not willing or able to come to agreements, Mediation may not be an option.
- Alternatives (including Mediation) to a traditional divorce are not the best options for every situation. **
Because the expenses with a drawn-out process are considerable, let’s look at how long it takes.
Beyond the minimum requirements for filing (like the 6-month minimum waiting period in CA), Mediation can be completed in just a couple of months, whereas traditional divorces (with attorneys) take about 12-18 months to complete. This difference in timing can make all of the difference when it comes to the expense of waiting on assets/property splits, and child and spousal support.
SO, does divorce have to mean financial ruin?? No, it doesn’t. The main takeaways here are that minimizing professional fees and avoiding costly mistakes, drawn-out processes, and landing with undesirable agreements relating to assets and property are your best ways to ensure that your divorce doesn’t mean your financial ruin.
Schedule a free consultation with one of our Providers. They can discuss your situation with you, help you to determine which path is right for you, and answer any of your questions.
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*Average Filing Fees (CA):
- Divorce Filing Fee: $435
- Certified copies of marriage dissolution record: $10 to $15
- Filing affidavit of publication of notice of dissolution of partnership: $30
- Additional motions filed: $25 to $60
- Child custody evaluation: Amount set by court
- Court-appointed counsel for child: Amount set by court
**When to consider hiring an Attorney or taking the traditional route:
- You suspect your spouse is hiding assets/income.
- Your spouse is domineering, and you have trouble speaking up or you’re afraid to voice your opinions.
- There is a history or threat of domestic violence (physical and/or mental) towards you and/or your children.
- You and/or your spouse has a drug/alcohol addiction.
The author of this blog is not an attorney and the information contained in these blogs should not be considered legal advice. The information provided here is based on the experience of the author and some of her clients whose actual names are not mentioned. Do not hesitate to seek the advice of an attorney if you have any legal questions.
