For many divorcing couples, the real final bill ends up being much higher, depending on how complicated the case becomes.
Here's the problem:
The majority of people do not realize how quickly divorce costs can mount up. Attorney fees, court costs, filing fees and the other miscellaneous charges can add up, fast. But here's the good news…
You can dramatically reduce the cost of your divorce by making the right decisions at the right times in the process.
Before learning how to keep costs low, it is important to have an idea of what makes divorce so expensive in the first place.
The single biggest thing that makes divorce so expensive? Disagreement.
It is when couples can not agree on the major issues (property division, child custody/support and spousal support) that costs rise dramatically.
Each disagreement means more attorney time, more court appearances and more paperwork.
For example, the average cost of a divorce in Colorado ranges from $2,500 for uncontested cases to $10,000-$30,000+ for contested divorces. If parties are fighting over contested issues in any state, the longer the process takes, the higher the costs.
Attorney fees are the largest chunk of divorce costs. Legal fees average $4,100 when there are no contested issues, but attorney fees can jump to $17,700 when contested divorce cases go all the way to trial.
Other costs involved include:
The more issues that there are to contest and the more complicated it all becomes the more these expenses add up.
Now that you know what causes costs to escalate, let's get down to the best methods to keep them as low as possible without sacrificing the right results.
Going to trial is the number one way to burn through your savings.
Court battles are very expensive. In addition to attorney time, there are all of the other associated costs with court trials – preparation, court appearances, experts witnesses, etc.
Instead, the best approach is to focus on other means of dispute resolution such as mediation or collaborative divorce.
These types of approaches not only cost a fraction of the cost of traditional litigation, but can also lead to better results for everyone involved.
One of the most basic ways to save attorney time (and money) is to do the work yourself.
Gather all financial documents, property records, account statements and any other information BEFORE meeting with an attorney.
The more organized and readily available the information is, the less time the attorney will need to spend on the simple basics.
Documents to gather include:
Couples can save hours of billable attorney time just by getting this simple task done before anything else.
The number one way to save money on a divorce is to avoid contested issues as much as possible.
An uncontested divorce costs an average of $4,100, which is significantly less than the average cost of $12,900 for contested divorces. This is a savings of over $8,000 just by agreeing on the major issues.
An uncontested divorce simply means that both parties are in agreement over the following major issues:
The uncontested divorce process is a faster, cheaper and less stressful way for everyone involved to get divorced.
Remember that not every issue is worth fighting over.
Before demanding something in the divorce process, ask the question "Is this really worth the cost involved?" Too often attorney fees to battle over an issue will be more than the value of the issue itself.
Spend your time, energy and financial resources on the issues that are most important to you and be willing to let go of the small arguments that are not worth it.
It is important to know the difference between a contested and uncontested divorce in order to make informed decisions about the process.
An uncontested divorce occurs when couples can come to an agreement on all major issues and there are no disputes. Uncontested divorce is faster, cheaper and less stressful.
Over 95% of divorces in the U.S. are uncontested. This means the vast majority of couples in this country are able to come to agreement on all of the major issues without having to resort to long and expensive court battles.
A contested divorce means there are one or more major issues that the divorcing couple cannot agree upon.
On average, it takes 12 months for couples to come to an agreement if there is one contested issue and goes up to 16 months or more if there are three or more contested issues.
Remember, it is not always black and white. There will be times when going the contested divorce route is a necessity to protect your rights and assets. However, whenever possible, an uncontested process is the best and least expensive route to take.
One last thing that most people do not think about when it comes to keeping costs down is that you do not always need to hire an expensive attorney to handle every step of the process.
Mediators can help couples come to an agreement on their disputed issues without going to court.
They cost less than attorneys and can work to resolve issues quickly and in an efficient manner. Couples will often hire mediators for certain specific issues and handle the simpler items on their own.
There are some attorneys out there that will offer what is called "unbundled" or "limited scope" services where they only handle specific parts of a divorce and not the entire case.
This can include:
This allows the individual to have the assistance of a professional where it is needed most without the financial commitment of full representation.
If the couple is filing for a simple uncontested divorce with no children and assets that are not very significant, there are some online divorce services that can offer an affordable alternative.
These companies offer forms and other guidance to do the divorce paperwork on your own.
This is an effective option only when:
Divorce expenses can pile up quickly and without proper care and attention to the process it can get very expensive, very fast.
Remember that the easiest way to save money and keep costs low during a divorce is to work together and reach a mutual agreement on the major issues.
Couples who battle and fight over every detail will easily spend thousands more in expenses than those who cooperate and settle matters outside of court.
Quick Recap:
Make a commitment to decisions that will protect your financial future instead of decisions that will throw money away in a fight that will never end.
The divorce process is hard enough without adding all of the unnecessary stress from financial worries. Follow these strategies and save your hard-earned money during the divorce process.
