advertisement
Other factors to consider
If you have children: If the divorce is contested because of visitation or child-support issues, the cost can rise by $15,000 or more.In some divorces, a cost-of-living clause is included in the divorce decree to ensure the children's financial needs as they get older. Other considerations include health insurance, therapy or substance-abuse treatment, sports uniforms and equipment, and college expenses.
If you need to trace assets: In addition to legal fees, an attorney may suggest financial professionals to help track assets in the divorce. An accountant might 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 an average of $7,500, and a full report on a larger company can top $25,000.
A cash-flow analysis costs an average of $10,000. The purpose is to see whether a spouse is getting cash through a business and using it for personal expenses without the other spouse's being aware of that money. Tracing assets, according to New Jersey certified public accountant Noah Rosenfarb, is used mostly 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.
More from MSN Money and divorce360.com
Ways to save
In today's economy, couples may find themselves living in the same home until they can afford to divorce or until the housing market recovers. They're also turning to mediation, whereby a neutral third party helps the couple divide assets and resolve other issues, generally costing much less than an attorney.Mediators look at issues from a holistic view and consider psychological, emotional and social issues, not just legal ones, explained Elinor Robin, a psychologist who runs A Friendly Divorce in Boca Raton, Fla., with her husband, David Spofford, an attorney. Both parties share the mediation fees, usually equally. And because the parties have fewer issues to resolve, the process usually isn't as time-consuming. Most mediators require formal sessions over several weeks or months to ensure both parties are satisfied.
Video on MSN Money
Alternatives to lawyersNot so long ago, the only way to handle legal matters like a divorce was with the help of a lawyer. But now there are less expensive alternatives. Should you use them?
Divorcing couples with complications such as business valuation or complex custody issues should choose mediators who are attorneys. (Attorney Heicklen and his wife, Clare, a marriage and family therapist, charge $250 per hour per spouse for a minimum 10-hour mediation session. Most couples need 20 hours.)
Another option is collaborative divorce, a hybrid of litigation and mediation. This process demands the couple and their attorneys be committed to reaching a settlement outside the courtroom. If a satisfactory resolution cannot be achieved, the collaboration lawyers are dismissed, and the couple must find other legal representation.
Updated May 26, 2009
< previous | 1 | 2 |
Rate this Article
High
