Breaking Down the Cost of Divorce

Divorce often takes a high emotional toll, but it also comes with a very real financial impact. Due primarily to attorney fees and litigation costs, the price of ending a marriage can add up quickly. While some divorces are uncontested and relatively affordable, others can slowly devolve into lengthy and expensive ordeals. The latter is especially true when there are disagreements over assets, custody, or financial support. Understanding the main cost categories of divorce is the first step in an often-burdensome process. The more informed you are going in, the better the eventual outcome.

It’s also important to be aware that the cost of divorce isn’t just counted in legal fees. There are ongoing pricey considerations, like setting up separate households and potentially paying an ex-spouse in the form of alimony or child support. Even lesser-talked-about expenses, such as time away from work, can add up over time. The total cost often depends on a wide variety of factors specific to the couple involved. Knowing what to expect is the first major step.

The Average Cost of Divorce

The cost of divorce can vary widely depending on the specific financial situation, complexity of the case, and how much (or little) the spouses agree on. On average, a divorce in the United States ranges from about $7,000 to $20,000 or more per person.

Uncontested divorces, where both parties agree on major issues, tend to be far less expensive. Even with an attorney, they can be completed for a few thousand dollars or less. In DIY cases, a divorce can be accomplished for just a few hundred bucks (and a couple trips to the courthouse and notary).

In contrast, contested divorces that involve disputes over accounts, property, additional assets, or custody can quickly become super expensive. Geography also plays a role, as legal fees tend to be higher in large cities where you’re paying more for an attorney. Ultimately, agreement is key. If both parties can come to an understanding, they will spend far less on the divorce overall.

Attorney Fees

This is the one those on the brink of divorce dread the most. Attorney fees are typically by far the largest expense in a divorce. Most divorce lawyers charge hourly rates that can range from around $150 to $500 or more. Of course, this depends on experience, location, and reputation. If you’re wanting the best in town, be prepared to pay heavily for it.

Remember that many attorneys require an upfront retainer, which is essentially a deposit for them to take the case. Beyond this basic starting fee, billing is almost always tied to time. Even small disagreements between you and your soon-to-be ex can quickly add up in attorney costs. The more disagreements are at play, the more prolonged the case, and the higher the total bill. For this reason, cooperation can make a significant financial difference.

Court and Filing Fees

When compared to the immense cost of legal representation, court and filing fees seem like small potatoes, but it’s still good to be aware of them. There are standard court-related costs involved in filing for divorce. Though exact fees vary by state, they range from $100 to $500. If you need a process server to “serve” divorce papers (which confirms the other party is formally notified) this will cost about $100 or so. Additional costs are tacked on if there are multiple court filings, motions, or hearings.

Mediation vs. Litigation Costs

When it comes to mediation or litigation, the one you choose (or, perhaps, the one you are forced into) will play a major role in overall costs. Mediation involves a neutral third party that helps both spouses reach an agreement; it is typically way less expensive than the alternative. Seeing a mediator is not technically going to court, so it is the faster and less contentious route.

Litigation, on the other hand, is the other choice, usually reserved for couples who cannot come to an agreement. If you’ve ever had a friend that seemed to be “in the middle” of a messy divorce for months on end, he or she was likely going through litigation. It often involves extended legal battles and several hearings (and, therefore, higher attorney fees). The more conflict there is, the more time and money the process takes.

Division of Assets and Property

The more you own with your spouse, the harder dividing assets is likely to be. Assets can include everything from the family home and vehicles to retirement accounts and investments to possessions within the house. When the value of a certain object or property is unknown, professional appraisals or financial experts may be needed to determine the monetary value. Deciding whether to sell property or buy out a spouse can also be tricky business. Of course, this is one of the major topics covered in either mediation or litigation.

Alimony and Child Support

Alimony and child support are ongoing financial burdens that can continue well beyond the divorce itself. State laws often provide guidelines, but these payments are based on many specific factors such as income, length of the marriage, and custody agreements. While some support payments are temporary, others may last for years. And these obligations are legally binding.

Custody Disputes and Their Costs

Custody disputes can massively increase the cost of a divorce. When parents cannot agree on custody arrangements, or one party is claiming the other party is an unfit parent, the court may require evaluations or specialists. This can include custody evaluators, guardians ad litem (persons assigned by the court to investigate and represent the best interests of a child), or even psychological assessments. And as you might expect, each of these services comes with its own costs. These services can also easily prolong the legal process, which increases attorney costs. When it comes to you and your spouse seeing eye to eye, this may be the most crucial area in question.

Hidden and Indirect Costs

Because people in a divorce are primarily focused on sky-high attorney costs, it can be easy to overlook indirect costs that often come up during a divorce. These can include finding a new home, moving expenses, setting up a new household, and purchasing new furniture or home good essentials. Without a partner in the mix, you may also now have new costs related to childcare or working fewer hours to handle more responsibilities. Adjusting to a single-income lifestyle can also be costly in ways we tend not to consider (no one to split the Netflix and Hulu subscriptions with, for a small example). While these expenses are almost never discussed upfront, they can add up quickly. Be prepared for these hidden costs.

How to Reduce the Cost of Divorce

There are several ways to keep divorce costs under control. Though skipping lawyers entirely is often not the best legal advice (and I should state here for the record: I am not an attorney), if you and your spouse have managed to retain a good deal of trust, a DIY divorce is worth considering.

If you go the conventional route and hire an attorney, get organized and gather necessary documents that you know your lawyer will need. This can greatly help reduce billable hours. Though it can feel at times like you’re doing your lawyer’s job for them, it can be well worth your time.

Additionally, limiting conflict will ultimately make the process flow smoother. Though it can be hard to feel for a spouse at the end of a marriage, empathy can lead to greater compromise, and therefore a faster and less costly divorce.

And if you can’t agree on something, choose mediation over litigation if at all possible. Avoiding a major legal battle will be way more affordable in the long run.