If you are thinking about divorce, there are many financial issues to consider. Getting out of a marriage costs much more than just the fee for filing the actual divorce papers. The costs of divorce can force some parties to stay together because they just cannot afford the costs of leaving.
There are many expenses associated with divorce. The largest expense is usually the legal fee charged by the attorney. Costs start with a consultation fee, which can range from $200-$400. It may take a few consultations to find a lawyer who is the right fit. Then there is the payment of a retainer, which can range from $3,000-$15,000. According to a recent Forbes article, $7,000 is the median cost of divorce related legal fees, while the average fees range from $15,000-$20,000.
Attorneys will bill against the retainer for their time spent on the matter. The more time an attorney spends on the matter, the higher the fees will be. The more items and terms that the parties can agree upon will reduce the time and fees associated with the divorce. But, in very contentious cases, where the parties battle over child custody, support and property division, legal fees can total upwards to $100,000.
Also, it should be noted here that there is no court appointed lawyer for a divorce case. Even though everyone is most likely familiar with the phrase from the Miranda Rights, “and if you cannot afford a lawyer, one will be appointed…”, that unfortunately only applies in criminal cases, not in civil cases like divorce.
Some law firms and lawyers will charge flat rates. Typically those flat rates are determined by the time spent on similar matters and there is a limitation on what the fee covers.
In addition to the attorney’s fees, there are the expenses of filing a lawsuit. Every state has a fee structure for lawsuits filed in their state courts. Each lawsuit will have a filing fee, typically starting at $100-$200. Some states have filing fees over $400. So, if there is an action filed for child custody and child support, there will be a filing fee. Then, months later, then the parties are ready to file for the divorce, there is another filing fee. Also, each time a lawsuit is filed, the other party has to be served. There is a fee for service by law enforcement or private process server. These service fees can range from $30-$100.
Costs continue as the parties may attempt to resolve their differences in mediation. Mediation is a form of alternative dispute resolution, led by a trained mediator who will try and bring the parties to a settlement. The mediator cannot make a decision, but he or she can share with the parties what a judge is likely to do. Mediators typically charge a flat fee to reserve their time, and then they bill an hourly rate as well. Those reservation fees can start at $500-$1000, and then mediators can charge $150-$350 an hour. Even with the costs of mediation, a resolution via mediation can save money when compared with the costs of litigation.
If the divorce mandates that the family home is sold, there usually are costs associated with making repairs and updates to the home. If one of the parties plans to stay in the home, the parties may need a real estate appraisal. Also, while mentioning the home, it should be noted that there will be moving expenses for at least one of the parties. Moves also include purchasing new furniture, incurring utility hook-up fees, and paying for items needed in the new household.
Other expenses can arise if one of the parties is leaving the family cell phone plan and/or leaving the family insurance plan, whether it being health insurance, auto, and/or home owners. Divorce clients can experience some “sticker shock” when they learn that their health insurance may cost $500 a month. Most health insurance providers will allow a spouse to remain on their spouse’s plan until the divorce is granted.
Other costs from a divorce may include the costs of therapy for the parties and the children. Just as prices can vary from lawyer to lawyer, they vary from therapist to therapist. These types of expenses typically are not covered by health insurance, so this is another out of pocket item.
If the divorce is contentious and extended litigation is involved, the parties may undergo depositions. The court reporter will have a fee and lawyers will be billing for that time spent at deposition. Also, divorcing parties may find that they will need to take off from work to attend depositions, therapy appointments, mediations, and court hearings.
And lastly, there is the emotional cost of divorce. This cost cannot be given an exact number. But, there is an emotional toll that divorce takes on the parties. Parties can feel like a failure that their marriage is over-whether it is their fault or not-if the other party cheated or has a substance abuse issue. There are costs associated with the feelings of regret, sadness, and despair. Divorce takes a huge toll on one’s self esteem, confidence, and mental health. Depression and anxiety can be experienced by both parties.
While the other costs can be calculated and totaled, the emotional costs might be hard to assign a number or dollar amount. But, parties need to realize that the emotional costs are real. Often parties may feel that the emotional costs can be reduced if the parties can resolve their issues via a separation agreement or mediation.
The overwhelming majority of cases do settle, via separation agreement or mediation. If the parties can agree on key terms, they can save themselves thousands of dollars and perhaps get through the emotional pain more easily as well.
