How Much Does Divorce Mediation Cost?
No matter what process you choose for your divorce, cost is an important factor to consider carefully and as early as possible. At New Hope Divorce Mediation, our comprehensive flat-fee is a cornerstone of our commitment to offering you a divorce process that is both predictable in cost, and dramatically less expensive than litigating through attorneys.
Why NHDM Mediation is Much More Predictable and Much Less Expensive than Litigation
Litigation costs are so high mostly because a litigated divorce is not efficient and divorce attorneys charge hundreds of dollars an hour for their time. The more billable hours that go into your divorce process, the more expensive your divorce will be. Since litigated divorces typically require both you and your spouse to have attorneys, this multiplies the rate at which dollars are flowing out of your marital estate and to the attorneys you and your spouse are paying for representation. By contrast, mediation allows you to minimize billable hourly attorney costs and to share in the modest flat-fee expense of a single mediator. Our mediation process is extremely efficient, offering you a way to get divorced with dignity and professional assistance, but without unnecessary hourly fees from attorneys.
In this article, we’ll cover what makes our fee structure unique, some of the costs you and your spouse can expect as you begin mediation, and how litigation fees compare.
How the Cost of Divorce Mediation is Determined
One of our goals at New Hope Divorce Mediation is to provide divorcing couples with predictability throughout the mediation process. That’s why we charge on a flat-fee basis, in contrast to many other mediators, who often charge an hourly rate. Our flat-fee structure provides couples with more control over the cost of their divorce and eliminates surprises. We will determine your flat fee based on what we learn from you during the free, one-hour Initial Consultation we will have with you and your spouse before you engage for our services.
While we find that most of our mediation matters are resolved for a total flat fee of between $7,000 – $9,000, some simpler matters can often be resolved and completed for between $6,000 – $7,000 total (for example, no minor children, no shared real estate, no claims for support or alimony, and no retirement plans or complex executive compensation to value or divide). However, it is important to note that some circumstances may require a higher mediation fee, which typically involve complex financial assets, such as stock awards and options, defined benefit pensions, ownership of multiple real estate holdings or business interests.
During your free one-hour Initial Consultation, we will also tell you how many sessions will be included in the flat fee for your matter. Most couples who mediate their divorce with NHDM complete their process within two to four mediation sessions, each lasting two hours. You will always have the option to convene additional sessions beyond those we include in our flat fee. To keep any such additional costs predictable, we simply charge a flat fee of $850 per two-hour mediation session beyond those included in your flat fee.
The Cost of Divorce Mediation vs. the Cost of Litigated Divorce
To understand just how cost-effective mediation is, it might be helpful to have a picture of the costs associated with litigated divorce. To start, the initial retainer fee for each spouse’s divorce litigation attorney can be $5,000 to $7,500 or more. That means it is very common for both spouses in a litigated divorce to incur a combined cost of $10,000 to $15,000 just to get started with their attorneys. These initial retainers are often non-refundable and must be replenished once they have been exhausted. After only a few months of active litigation, spouses can easily incur $20,000 – $30,000 in combined legal fees, often with no end in sight.
Litigation attorneys charge hourly, typically billing in tenth of an hour (six-minute) increments and sometimes rounding up to the next tenth of an hour. For example, it is not uncommon for attorneys to bill three minutes of work as six minutes, ten minutes as twelve, and so on. Most attorneys charge for all time spent on your case, and sometimes even charge “minimums,” such as no less than six or even twelve minutes of billable time per email sent or received. When an attorney bills at $450 per hour, one email sent or received might cost you a minimum of $90, no matter the length! Since spouses do not typically communicate directly with each other in a litigated divorce and communication occurs between the spouses’ attorneys, even simple questions or communications through attorneys can quickly generate hundreds of dollars in legal fees.
Another factor that makes litigation so expensive is the court’s discovery process, during which each spouse’s attorney sends a request to the other party to disclose financial and other information. Discovery requests can take hours to prepare and exchange, with many more hours to be spent reviewing and organizing the records received in response. By contrast, in divorce mediation, you voluntarily share all your financial information with each other and your mediator, eliminating the need for expensive, attorney-driven discovery. At NHDM, your flat fee will cover the time your mediator will spend reviewing and organizing your financial documents, saving you thousands – perhaps even tens of thousands of dollars – in discovery-related attorney’s fees.
In short, when you are each paying an attorney for every minute of their time representing you in your divorce, it is easy to see how litigated divorces can cost spouses more than $40,000 in combined legal fees, and why more complex matters can even exceed $100,000. By contrast, most mediation participants at NHDM spend under $8,000 (combined!) for all our services, including all their mediation sessions, drafting of their Marital Settlement Agreement and Custody Stipulations, and assistance with their pro se court filing process.
Conclusion
Mediation is an investment in the well-being of your family. It provides an efficient and effective way for you and your spouse to maintain control over important decisions about your and your children’s futures. When you litigate your divorce, you’re turning those decisions over to the court, and you pay your lawyers to communicate and negotiate on your behalf. By communicating and negotiating directly with each other with help from a skilled, professional mediator, you can save yourselves years of conflict and tens of thousands of dollars that would otherwise go to your attorneys.
To learn more about our comprehensive, flat-fee mediation process, and about how to schedule a free, one-hour Initial Consultation for you and your spouse with one of our attorney-mediators, contact us today.