Even with an uncontested divorce, legal documents must be filed according to state laws. If either party has any concerns about the DIY process, consider hiring an attorney to review the paperwork. If you have no children and some assets, you may be able to agree to a division of the property and hire an attorney file an uncontested divorce, which can cost from $1,000 to $10,000.
The cost of divorce becomes more complicated with children, according to
David Knox, a professor of sociology at East Carolina University and co-author of "
The Divorced Dad's Survival Book." If the divorce is contested because of visitation or support issues, the cost can range upwards of $15,000 or more. “The point is to be civil and work this out yourself. You can keep the money the lawyers will get. No one wins but the lawyers if you fight it out in court,” he said.
When Katherine Buckley decided to divorce, she didn’t know anything about legal fees. Her biggest concerns -- her child and the financial cost of the split. Divorce attorneys can charge from $75 to $400 or more an hour, depending on where the divorce is filed in the United States. “I didn’t have a ton of money and I didn’t know how I was going to pay for an attorney. I didn’t even know how much an attorney was going to cost me,” she said.
According to Heidi Culbertson, director of client development at
The Harris Law Firm in Denver, the consult fee or retainer are commonplace for legal work. The consult fee is charged as a flat fee or hourly fee to a potential client who wants a legal consultation. A retainer is a fee that secures payment for hourly legal fees in advance. In some cases, Culbertson said, the fee may need to be replenished once it is used. Buckley was not subjected to a consult fee, but she did pay a retainer.
During her consultation, her lawyer offered her two payment options – an hourly fee of $100. Her second option was to pay a lump sum of $3,000 upfront regardless of how little or much time the case required. Scared of racking up a bill, Buckley chose the second option. “…It seemed like the best option at the time,” she said.
Legal fees aren't the only costs you have to worry about when you file for divorce, according to New Jersey certified public accountant
Noah Rosenfarb. An attorney may suggest financial professionals to help track assets in the divorce. The costs for financial professionals can vary by state and is an add-on to the legal costs.
An attorney may want an accountant to help conduct a business valuation, do a cash flow analysis or trace the assets. The average cost of a business valuation -- to find out how much a small business like a pizzeria or auto body shop is worth -- can cost about $7,500, with $2,500 as a minimum to upwards of $25,000 for a full report on a larger company.
A cash flow analysis costs an average of $10,000. The purpose is to see if a spouse is getting cash through the business and using it for personal expenses without the other spouse being aware of that money. Tracing assets, according to Rosenfarb, is really used for clients who have a significant amount of money in a variety of accounts. It can cost as little as $5,000 and as much as $100,000.
California psychotherapist
Tina Tessina, the author of 13 books, including "Money, Sex and Kids: Stop Fighting about the Three Things That Can Ruin Your Marriage," advises divorcing clients that “agreeing with your soon-to-be ex beforehand about finances and then letting the lawyer draw up your agreement is a lot cheaper than fighting it out…”
CHILD SUPPORT, OTHER EXPENSES
Issues regarding children often touch deep nerves, and child support can be a source of contention in many divorces. Child support is mandatory in most states and guidelines, with most states relying on the parent’s ability to pay, the amount of time the child spends with each parent and the child’s needs.
Divorce360.com did not include child support in its figures for the average cost of divorce, because many of those costs would have been paid anyway if the spouses had remained married. Cunningham acknowledged, however, that living apart can be expensive when shuttling children between two homes. "Kids need to have two sets of everything, so it's another unintended cost of divorce," he said.
Wall, who works with women on financial planning before, during and after divorce, said education and health care costs are also issues in the cost of divorce. Many of her clients have two children in private school. “After divorce they can’t afford to keep the kids in private school, but one of the parents really wants to. Compromise is that they live in a really good school district, with good private schools. But the houses there are expensive,” she said.
In some divorces, a cost of living agreement clause is included in the divorce decree to ensure the children’s financial needs as they get older. In addition, insurance is considered so that the children can be financially supported if one parent dies. “Your settlement should spell out who will pay for common expenses that may not be included in the state’s formula, such as health insurance for the children, medical expenses and deductibles, therapy or substance abuse treatment and special school expenses, such as sports uniforms and equipment and activity fees,” Wall said.
“Future college costs aren’t factored into support in most states, but if you and your soon-to-be ex-spouse can agree on how you will save for your children’s education, it will benefit your children later on," Wall said.
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