Divorce is one of many things that gets expensive the longer it lasts. A couple that settles all of their issues and goes their separate ways peacefully won’t have to pay a dime. Sadly, this isn’t a perfect world, and contentious divorce is a dime a dozen.
Based on data from Martindale-Nolo Research, the cost of divorce starts at USD$4,100 if there aren’t any major issues to deal with. Out-of-court mediation raises the price tag to more than USD$10,000, whereas a court-mediated divorce can double in cost. On average, divorce costs USD$11,300—about as much as a decade-old used car.
When married couples can’t agree on certain things, a divorce facilitated by a third party can’t be avoided. However, there are ways to make the process less of a financial burden and allow for a more amicable separation.
An experienced divorce attorney who charges a flat or fixed fee for their services, like Mediation Northwest, often has a couple’s financial situation in mind. Instead of charging by the hour, they tailor service packages based on factors such as:
The couple raising children
Possibility of child support payments
Possibility of spousal maintenance
Maintaining business interests (if any)
Children currently in college
One or both couples retired
The existence of marital assets (e.g., joint accounts)
Such a lawyer or law firm knows they’re at a disadvantage, as the lack of an hourly retainer means lower earnings per client. That said, clients don’t appreciate being charged insane rates for, say, an email that took a few minutes to make. Some may even accuse the lawyer of drawing out a session on purpose to maximize profits.
More importantly, the flat fee model promotes transparency. Couples would know exactly how much they expect to pay for everything that needs to be done. Lawyers provide a full breakdown of all necessary tasks and their respective costs, from mediation to filing divorce papers and other legal documents for court settlement (if it reaches that point).
How much a flat fee can help couples save on their divorce cost depends on the lawyer or law firm and their location. The cost reduction is typically modest, but the savings come in the form of not having to pay the professional by the hour.
The huge financial cost of divorce can make DIY-ing the process tempting. However, as any expert will tell you, divorce is a maze of legal processes that you must navigate while under major emotional strain. Notwithstanding the time and resources needed to manage the process, decision-making while in a precarious state of mind risks costly mistakes.
That said, reducing financial strain can require assuming responsibility for some steps of the divorce process. This is known as a limited-scope representation, also known as “unbundling.”
When even flat-fee divorce lawyers are still beyond a couple’s reach, unbundling can be a blessing. In this arrangement, the lawyer and their client agree on specific tasks they’ll undertake. For example, the lawyer may write a petition or any other legal document while the client files it with the court.
Lawyers can’t charge for work they didn’t do, which is why unbundling can save couples a lot of money. It’s a viable option for keeping substantial control but still needing a lawyer’s expertise to handle the more complex parts.
According to the American Bar Association (ABA), this approach is often linked to self-representation in court. While the law allows this (called pro se representation), lawyers almost never advise this unless you’re one yourself. For starters, judges won’t treat self-litigants any differently from lawyers and expect them to be versed in divorce proceedings.
Given how much the divorce bill will get once the court steps in, it makes sense to avoid reaching such a point. Of course, this still depends on the couple’s willingness to settle their issues by themselves. At least, in this case, the mediator doesn’t have to be the judge but can be a trained mediator or arbitrator.
Most of them are trained in alternative dispute resolution (ADR), a series of methods that aim to reach a settlement without going to court. The main advantages of ADR over other methods are the following:
Speed: Disputes settled via ADR aren’t constrained by backlogs and other issues hampering the U.S. justice system.
Privacy: The parties have control over what, when, and how to disclose information about the off-court settlement.
Versatility: ADR sessions can be held anywhere as long as a mediator or arbitrator is in attendance.
Mediation and arbitration are two common types of ADR. While they may seem similar, the Program on Negotiation at Harvard Law School says otherwise.
| Mediation | Arbitration |
|---|---|
| The mediator assists parties in reaching an agreement, though mediation can still end in an impasse. The requirements for being a mediator are not as strict, though getting an ADR-trained person active or retired is still a good idea. | This is a more formal type of ADR in which the arbitrator is responsible for reaching a conclusive settlement. As such, they have more control over the arbitration, and their decision is often final. Lawyers generally represent the parties here. |
| �� | |
Off-court settlements allow couples to recover faster following a divorce. The sooner the couples reach an agreement, the sooner their lives can return to normal. It’s no surprise that the ABA reports that over 90% of divorcing couples have used ADR at least once.
Divorce is a costly affair, but it’s the only way for couples to move on. The best way to keep divorce costs low is to reach an agreement before the court steps in. However, even in the worst-case scenario, couples still have some options.