How much does a divorce cost in 2022?
Chauncy Crail .. Forbes Magazine
Although the U.S. divorce rate is declining, over 600,000 Americans get divorced each year, sustaining a more than $11 billion-per-year legal industry. What does this mean for individual marriages, and how much does a divorce really cost in 2022?
The median cost of a divorce in the U.S. is $7,000, while the average is between $15,000 and $20,000. But this is not a one-size-fits-all price tag. More complicated “contested” divorces can be significantly more expensive, while uncontested divorces can be significantly cheaper. Here’s everything you need to know to help you determine what your divorce may cost.
How Much Does a Divorce Cost?
The median cost of a divorce in the U.S. is about $7,000, but this is not a one-size-fits-all price tag. The more complicated contested divorces—ones with disagreements around issues such as property distribution or child custody—can become significantly more expensive, often running up tabs well over $100,000.
Uncontested and do-it-yourself divorces run much less, $200 or so if you DIY, $2,000 or more if you get legal help. Part of the variability is that procedures and fees vary significantly from state to state.
In addition to the state in which the divorce takes place, common important factors that affect cost include whether or not professional legal help is hired, whether the couple lives in an urban or rural area, the complexity of the couple’s finances and the involvement of child custody issues in the divorce.
Perhaps the single most important factor influencing divorce cost is whether or not a couple can agree on the terms of the divorce. The more contested the matter becomes, the more expensive divorce will be. This is due mostly to increased legal fees for cases with challenging and time-consuming issues.
How Much Does a Divorce Lawyer Cost?
Attorney hourly rates remain the most common way legal fees are charged and are the biggest cost involved in a divorce. A flat rate billing is most common for uncontested divorce, but other alternative payment options may exist.
How Much Do Divorce Lawyers Cost per Hour?
In practice, hourly billing is often broken down into tenths of an hour so that clients are actually charged per six-minute period, though rates are still described on a per-hour basis. These rates are influenced in part by the lawyer’s expertise, status with a firm as either a partner or associate, reputation, years in the industry and other credentials. Legal fees can also be influenced by factors that have little to do with a specific lawyer. Costs in general tend to be higher in cities and lower in rural areas. In the U.S., average billing rates are highest in coastal cities.
The size of the law firm in question can be another meaningful factor. Though a single hourly rate is common, some lawyers may charge separate rates for different work, such as one fee for trial work and a lesser one for document review. Generally, small firms are more likely to bill lower than larger ones.
A large firm may have junior associates, legal assistants and paralegals who are likely to be tapped for support with legal work at a lower hourly rate.
Flat Fees and Alternative Fee Arrangements
Some lawyers charge a fixed or flat fee for a particular case rather than billing by the hour. While this is rare in some areas of law, it’s not uncommon with relatively simple, procedural cases like routine uncontested divorces, where lawyers can most easily estimate the workload. Flat fees are usually paid in advance.
Law firms sometimes use other billing arrangements, often referred to as alternative fee arrangements (AFAs) or value-based billing. Depending on the law firm, lawyers can have significant leeway in determining payment options and may be willing to negotiate a creative arrangement with a client. It’s becoming increasingly common for lawyers to offer installments or fixed monthly fees, while others may accept nontraditional forms of payment like credit cards.
Some may even offer hybrid methods such as hourly rates with a guaranteed minimum and maximum. Contingency or success fees, which factor a case’s outcome into billing arrangements are common in some areas of law but considered unethical in most states for family law and are illegal for divorces in other states. No matter what, it’s important for all fees to be disclosed in a written fee agreement or retainer.
How Much Does a Divorce Cost With a Lawyer?
While defendants in American criminal cases have the right to a free, state-appointed lawyer if they cannot afford one, the same does not apply to civil matters like divorce. Short of seeking assistance from third-party organizations such as legal aid or volunteer lawyer groups, individuals must pay for professional legal help out-of-pocket.
Full Costs of Hiring a Lawyer
Besides paying for the time a lawyer spends on a case, there are further costs of hiring a lawyer. While some lawyers offer an initial consultation for free, others charge an upfront fee. These consultations can serve as a necessary exchange of information and help determine if the lawyer is a good fit for the client’s case.
Another common upfront cost of hiring a lawyer is a retainer fee, which functions like a down payment to secure the lawyer’s future time and service. While not all lawyers charge this, some bill anything between a small portion and the estimated full value of legal fees—it all depends on what’s agreed upon ahead of time.
Other costs charged by a law firm include copy and postage fees, travel expenses and payment for expert witnesses, appraisers and consultants. These may be charged upfront or along with legal fee payments. Whatever the situation, it’s important to have a complete understanding of the other costs beyond a lawyer’s hourly or flat rate before committing.
Attorneys also bill clients for court fees, such as filing and processing fees imposed by the state.
How Much Does a Divorce Cost Without a Lawyer?
In the short term, divorcing without a lawyer usually costs less because the only fees are court fees. One survey showed the median court cost to be $300. The choice to forgo a lawyer and represent yourself pro se is most feasible and most likely to lower costs in no-fault, uncontested divorces.
In the long term, representing yourself saves money only in the simplest of divorce cases. Although you might wrap up the case quickly, in the long run you will likely receive less property, spousal and child support than if an attorney represented you, simply because you don’t have the knowledge or experience a lawyer does.
Research shows overall success with the divorce court system is harder to achieve for pro se litigants. A lawyer not only streamlines the process but also helps a client make important decisions and protect their rights. The long-term financial implications of any mistakes or missed opportunities can easily surpass the initial cost of hiring a lawyer. Experts recommend at least consulting a lawyer at the outset of a divorce, even if it’s believed to be uncontested.
How Much Does a Do-It-Yourself Divorce Cost?
If you choose to handle your divorce yourself, you can plan for the costs if you know what to look for.
Costs of DIY Divorce Process
Whether or not you have an attorney, there are basic court and procedure costs that must be paid in any divorce:
Filing fees
Courtroom expenses, such as transcript costs
Divorce forms (provided free in some states)
Process server for serving divorce papers
Your state court website will likely list the fees involved.
There are other fees that may be necessary depending on state requirements and the complexity of the case:
Mediation costs (required in some states)
If real estate is involved, you’ll pay a real estate appraiser and costs of recording deed fees
If a business is involved, you’ll pay for a business valuation, certified public accountant and other professional fees
Child custody evaluator
Tax advisor or accountant
Expert witnesses
Soft Costs
Also consider the soft costs of divorce: commonly-faced expenses distinct from the legal process and often separate from the terms of a divorce. These include moving, therapy for yourself or your child, starting a new phone plan, changing insurance, expenses for setting up a new household, replacing items your spouse got in the divorce and shouldering other costs that may have been cheaper or shared as a married couple.
The emotional or mental costs and the longer-term financial costs can take an unexpected toll as well. And if you share children, the transportation costs for sharing time can be significant.
Further Costs to Consider
Divorce terms often bring about several types of legally-binding expenses that are neither costs of the legal process itself nor soft costs of life after divorce. They can represent by far the most financially consequential aspects of a divorce.
Alimony (Spousal Support or Maintenance)
In the context of divorce, alimony, sometimes called spousal support or maintenance, is money paid by one former spouse to the other. Spousal support must be included in the divorce judgment to be legally binding and enforceable.
The couple may reach an agreement about alimony or the judge may determine the terms if contested. Alimony laws vary by state but judges usually consider factors like the standard of living established during the marriage, the financial needs and resources of each party and contributions the spouses each made to the marriage to each other’s careers and education.
Property Division
As with alimony, a judge is usually happy to approve property settlements that a divorcing couple comes to without the court’s help. If a settlement cannot be reached, the judge will determine this in conjunction with state law.
State law varies widely on how the court must evaluate this. In some states, marital assets are split 50-50 (called community property states) and distributed equitably (according to other metrics of fairness, called equitable distribution) in others.
Child Support
If the parties share minor children, child support is required to be included in the divorce judgment. Child support is determined by considering the child’s health and educational needs, child care costs and the parties’ incomes.
What Makes a Divorce More or Less Expensive?
Litigated divorce, where the case goes to a trial before a judge, is the most expensive type of divorce. There are a variety of other ways to resolve a divorce at a lower cost.
Mediation
In divorce mediation, an impartial third party helps the couple resolve issues themselves. The terms they agree upon are entered into a mediation agreement that becomes the terms of the judgment of divorce. The goal of mediation is to provide the couple with the information and a focus on common interests that help them best reach a mutually beneficial agreement.
Unlike litigation, mediation allows both sides to “win” and leaves each party with higher satisfaction than in a litigated divorce. Some states require an attempt at mediation before going to court in certain circumstances, while others require it for nearly all divorces.
Couples can resolve a divorce through mediation alone and avoid going to trial altogether, greatly speeding up the divorce process. As a legal matter, the divorce must still be filed with the court and a judgment issued by a judge, and many people still hire lawyers to help with this process. Uncontested divorces that go through a mediator are easily incorporated into a court order and are much less expensive than a trial.