How Much Does a Divorce Cost? Here Is A Breakdown of the Expenses (4 Video Links)

When a couple decides to get divorced, the first question that comes to mind for many is, “How much will this cost me?” Unfortunately, the answer to that question can vary greatly depending on the situation. This blog will break down the average costs associated with each step of the divorce process. It will also provide some tips on how to keep your divorce expenses as low as possible.

 

Always consult with a licensed attorney regarding all legal issues.

The Average Costs:

 

1) Retainer Fees:

 

Most lawyers charge an upfront retainer fee to cover the initial administrative costs associated with a divorce. This retainer is typically non-refundable and can range from $2,000 to $7,500, depending on the specific situation and state laws.

 

2) Court Filing Fees:

 

There are court filing fees for both spouses involved in a divorce. On average, these fees can be anywhere from $200 to $400 dollars per person.

 

3) Mediation or Arbitration Costs:

 

If couples choose not to go through traditional courtroom proceedings and decide instead to mediate their divorce through a third party, they will also incur mediation costs which usually range between $100-$300 an hour for each session.

 

4) Property Division Costs:

 

When it comes to dividing assets, the costs can range widely. If the couple can work out an agreement without going through the court system, this will be significantly less than if they need a judge’s approval. However, the cost of a real estate appraisal or business valuation may also need to be taken into consideration if one of these assets is involved in the divorce proceedings.

 

5) Lawyer’s Fees:

 

Finally, lawyer fees typically range from $200-$500 an hour and vary depending on how complex the case is and how long it takes for it to be resolved. For example, a high net worth divorce lawyer may charge up to $2,000 an hour.

 

Join Conference Room: More content on accounting, personal finance, and humor/ short story topics. Video, blog posts.

 

In addition, couples may also have to pay other professionals, such as accountants and financial advisors, for their services. Accountants and financial advisors will help couples figure out how to divide assets and advise on other financial matters.

 

Tips for Keeping Divorce Costs Low:

 

Try to negotiate a settlement agreement outside of court:

 

This will be the most cost-effective option as it eliminates needing additional laywer fees or court filing fees. It also keeps all negotiations private, which can help protect both parties’ interests.

 

Seek legal advice early on in the process:

 

Consulting with a lawyer sooner rather than later can help save money in the long run. In addition, this will ensure that you receive accurate information about your rights and options throughout the entire divorce process.

 

Consider other forms of dispute resolution, such as mediation or arbitration:

 

These techniques sometimes work better than litigation in certain cases and can be a more cost-effective alternative.

 

Utilize online resources:

 

There are now many websites that provide free divorce information and advice, as well as other useful tools such as budget calculators and legal forms. These sites can help to save time and money throughout the process.

 

Dividing assets is often an emotional and difficult process, but keeping one eye on your finances during the divorce proceedings is important. By understanding all the costs associated with getting a divorce, couples can work towards minimizing those costs while still protecting their best interests.

 

Again, consult with a licensed attorney regarding all legal issues.

 

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(amazon author page) amazon.com/author/kenboyd

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/