The Financial And Personal Costs Of Divorce: Lessons From A Divorce Lawyer

Whether you have decided to proceed with a divorce or whether you are still debating if it is the right decision for you, a common concern is what a divorce may cost you in the end. When evaluating the cost of any legal proceeding, many are concerned only with the financial meaning of the term “cost”, however, when dealing with a divorce, any divorce lawyer will explain that the term “cost” should also include emotional and personal costs, as these may significantly affect you and your children.

Financial Implications

While finances are a primary concern during the divorce process, you may not be aware of the exact costs or fees associated with doing so, how property is to be split, ongoing financial obligations, or a number of incidental costs that may be incurred.

Filing Fees

Each state or county may have a different process for filing a divorce and each may have different fees for doing so. In Montgomery County, Pennsylvania, for example, the county may charge nearly $300.00 to simply file a divorce complaint and may require a number of additional fees depending on the circumstances of the divorce and what is included in the complaint (additional counts of support, alimony, custody, etc.). Depending on the circumstances of the divorce, additional filings may be required (such as petitions, motions, etc.) and each may require additional filing fees.

Legal Fees

While some believe in handling their own divorce matter without the help of an experienced divorce lawyer, it is always advisable to hire competent legal representation for any legal matter. Hiring a divorce lawyer in a divorce proceeding is crucial, as it is a very personal matter and personal rights and property are being significantly affected.  Many divorce lawyers charge an hourly rate for divorce cases and bill for each hour worked. Divorce lawyers typically ask for an upfront payment, or “retainer”, to bill hourly against until the divorce is completed or until the retainer is depleted.

Every divorce lawyer is different, but the amount you pay for quality representation will typically depend on the complexity and involvement necessary for your particular divorce case.  For example, if both spouses agree on an uncontested divorce, there are no significant assets to divide, and there are no children involved, the total legal fees would typically be less than a situation involving fighting spouses with a high net worth, 3 minor children, and requiring a number of court appearances and additional filings.

Division of Property

Probably the most important financial concern during a divorce is how property is going to be divided.  While each state is different and has unique laws and rules, it is important to understand whether you live in a “community property” state or a “equitable distribution” state in determining how assets will be split.  In a community property state, both spouses are typically considered equal owners of all marital property (property acquired by either party during the marriage, typically subject to a number of exceptions/exclusions), meaning that whatever you earn or acquire during the marriage is spilt 50-50 during a divorce.

However, the majority of states are equitable distribution states, meaning that the court attempts to distribute the marital property in a manner that is “fair and just”. This doesn’t necessarily mean that the property is distributed evenly, only that it is done in a way that is fair. There is no set rule in determining who receives what or how much, as the court may look to a number of factors in dividing property, such as the relative earning contributions of the spouses, the value of one spouse staying at home or raising the children, and the earning potential of each spouse.

Ongoing Financial Obligations

As part of a divorce decree, one spouse may be required to make continuing payments to the other spouse, whether it be for spousal support, alimony, alimony pendente lite (APL), or child support.  The amount a spouse is required to pay is determined by the court and may be limited by state-set guidelines.  Typically, these amounts are dependent on each spouse’s net monthly income, the number of minor children involved, and a number of other factors looked at by the court.

Incidental Costs

There are a number of costs that may be incurred during the divorce proceedings that are not initially contemplated by the parties.  A perfect example is if one spouse moves out of the marital home.  This requires the costs of moving (time to look for a new house/apartment, renting a truck/moving company, possibly taking off from work to move, etc.) as well as the substantial cost of maintaining two households.

Personal and Emotional Costs

In addition to the financial costs, both spouses are subject to a number of personal and emotional costs, no matter how mutual or adversarial the divorce may be. The best case scenario is that both spouses agree that divorce is the best option and come to a mutual agreement on issues such as the distribution of property and ongoing financial obligations (alimony, APL, spousal support, child support, and custody).

An experienced divorce lawyer can then memorialize this agreement in a martial settlement agreement (sometimes referred to as a “property settlement agreement”) to expedite the divorce process. However, if it is not a mutual decision, it is quite common that spouses become spiteful and adversarial, making the process a potential nightmare, especially if children are involved. Divorce is an emotionally-taxing life event and there are a number of costs that, while not financial, are just as important to consider during the divorce process.

Time Involved

Even if a marital settlement agreement is drafted and both spouses agree on all aspects of the divorce, it isn’t an overnight process.  States typically have minimum time periods spouses must wait before a divorce complaint can be filed or required periods of separation if the divorce is not agreed upon. During this time, each spouse will be dealing with the opinions and comments from friends and family, which may not always be positive or supportive.

Read more: The Financial And Personal Costs Of Divorce: Lessons From A Divorce Lawyer