The True Cost of Divorce

“What is this divorce going to cost me?”  This is by far the most asked question I receive from potential clients.  It’s also the most difficult to answer and probably why when you google the question you get few concrete numbers and a lot of “it depends”.  To be fair, it really does “depend”.  It depends on where you live, how contentious your divorce is, and how long the process takes.  But that is not the answer someone considering separation or divorce wants to hear.  They want dollar figures.  So, let’s run the numbers.  An overview:

$5,600 Two day trial
$14,000 Trial Preparation
$1,200 Temporary Hearing
$1,200 Preparation for Temporary Hearing
$5,600 Depositions
$1,050 One Expert Preparation and Trial Testimony
$2,100 Discovery Preparation and Review
$2,000 Misc. Correspondence between Client and Attorney (phone calls, emails etc.)
____________
$32,750 Estimated Divorce Expenses


Remember, the figures I have used are based on estimates and a hypothetical divorce case.  I have tried to make it as realistic as possible drawing on my experience and situations I routinely encounter in divorce cases. Lets begin with the basics: an attorney’s hourly fee.  Fees for attorneys vary by state and by region in each state.  For instance, here in Virginia the rates for an attorney vary greatly from rural farm country Virginia to “inside the beltway” Northern Virginia.  It’s very similar to how cost of living varies in different parts of a state.  It costs more to live in Manhattan than it does to live in Buffalo, New York.  So, in this scenario I will be working with rates indicative of Northern Virginia.  Most attorneys in this area will have a rate of between $300 and $500 - that’s per hour.  No, I’m not kidding.  Most attorneys also work on a retainer basis, meaning they request an upfront lump sum of money, bill you by the hour and pay themselves from those funds.  Once the funds reach a certain point or are depleted you are required to make another deposit for work on your case to continue.  For a divorce I have seen retainers range anywhere from $3,000 to $10,000+.  This means that before you can even start the divorce process you must deposit those funds into your account with the attorney.  So let’s take the mid range, $6,000 for a retainer.  That should be more than enough to get you through the entire process, right?  Eh, probably not. 

Strangely enough I think it may be more constructive to work our way backwards through a divorce case.  I think it will illustrate more accurately how the farther along the case gets, the more contentious it becomes and the less settlement-focused it is  the more it costs.

If a couple is unable to reach an agreement on any of the terms in the case they will have to have a full trial.  A full trial is usually two days: one day for custody, visitation, child/spousal support and one day for property and finances.  For our scenario I will use an hourly rate of $350 which I think is fairly typical, if not on the low end.  Each day will consist of between four and eight hours of court time.  At eight hours for two days you have racked up $5,600.  These trials are the result of days and weeks of preparation.  For a two-day trial I would conservatively estimate that an attorney would spend AT LEAST the equivalent of 5 full days prepping.  This entails things like  drafting and reviewing exhibits and motions, outlining, preparing objections, direct examination, cross examination, opening statements, closing statements, client meetings, and reviewing documentation.  Five days at 8 hours a day is 40 hours and at $350/hr equates to $14,000.  So, a trial and trial prep has already run you almost $20,000.  Also keep in mind that this figure does not take into account any work that the attorney’s paralegal or legal assistant do on your case.  Any copies that need to be made or trial binders/notebooks that need to be prepared are all charged.  Paralegals and legal assistants bill at a lower rate than attorneys, but their fees are nothing to scoff at. 

Leading up to trial there are often various motions. A motion is a request to the court for some sort of action.  One of the most common motions is one that usually occurs at the beginning of each case and requests that the court set a temporary order to govern the parties while their case is pending.  This hearing is often about four hours in length (some are longer, depending on the contentiousness of the parties).  Four hours at $350 p/hr is $1,200.  Again there is preparation and I would estimate AT LEAST four hours of preparation for another $1,200.  Our total is now up to $22,000. 

In between this first hearing and the final trial, numerous letters are written between both parties’ attorneys discussing the case.  There are also depositions scheduled.  A deposition is essentially an interview conducted by one or both attorneys of witnesses and/or experts. .  Again, how long a deposition takes will vary depending on how complex the case is, if any experts are used, and how many witnesses need to be interviewed.  Once again, I would give a conservative estimate of about two full days of depositions (honestly it could be more for a fully contested case and easily doubles if the case necessitates experts).  Two full days would be another $5,600.  (Total?)

I briefly mention experts above.  experts used in divorce cases to testify in regard to  custody (i.e. child psychologists), child/spousal support (vocational experts testify as to what income they believe an individual is capable of making), financial experts (value of stocks, bonds, taxes), and real estate professionals (value of a home and viability of a sale). These individuals have hourly rates of their own that you pay on top of your attorney’s rate.  For instance, if you have a CPA come to court to testify as to the tax implications of liquidating a stock, that CPA may charge $150 per hour (conservative at best).  If your attorney questions the CPA for one hour you just paid $500 for that one hour ($150 CPA+ $350 attorney).  The costs for experts add up quickly and become one of the most costly parts of a divorce.  Let’s assume you have one expert who is called on to review the income of a party and their ability to get a higher paying job.  You will pay by the hour for that expert to review all the financial data (2 hours), meet with the party whose income is in question (one hour), be deposed (approximately two hours), and then appear at the trial for another two hours (they charge you even if they are just sitting in the courtroom waiting to be called to testify).  That is a total of $1,050.

Another area that many attorneys spend significant amounts of time is Discovery.  Discovery is a process by which you and your attorney send a list of questions and requests for documents to the other party.  They in turn will send you and your attorney a similar set of questions and requests for documentation.  For example, one very common question asked in discovery is “Provide the following information as to all checking, savings, credit union, and money market accounts or CDs held in your name and/or your spouse’s name, individually or jointly with any other person, or any bank account into which your funds were deposited and to which your name is not attached , at any time subsequent to (date of separation):  Name of Institution, Type of Account, Account Number, How Titled, Balance on date of Separation, Present Balance.”  That is just ONE question and there is typically a parallel request that every statement from those accounts be provided going back a certain number of months/years.  They can ask up to 30 such questions and obtain the court’s permission to ask more.  Needless to say, you are going to have to make a serious investment of time to answer the questions thoroughly.  Some clients like to laugh off discovery and say, “Well I don’t know X and Y information so that’s that.”  Incorrect.  You must make a good faith effort to locate all requested documentation, and if you do not, the opposing attorney can compel you to appear in court where the judge can make you answer and/or find the requested documents (another court appearance with more hourly fees).  In addition to your time, the intake of all the documentation, review of your documents and the documents provided by the other side, and preparation of answers to the questions are all going to require a serious time investment by your attorney and their staff.  Again, depending on the complexity of the case, average review of discovery and drafting any deficiencies (noting questions that were not answered and documents that were not provided) would probably take between 4 and 6 hours.  6 hours at $350 is another $2100 and that is not including the administrative fees for preparing/copying all those documents to send to the other side.

Finally, this entire process starts with an initial attorney consultation costing usually between $100-$250.  This makes our grand total around $31,000 and absolutely no guarantee that you get anything you want.  Many people will think that I have exaggerated the figures above.  I really wish that I had.  If anything I aimed very low.  $32,750 does not include any communication you have with your attorney in the form of phone calls or emails.  If an attorney bills out at $350 an hour, reading an email you sent will cost about $35.  I would conservatively estimate at least $2,000 in communication charges.  It also does not include any of the travel time for your attorney or experts to and from court or any of the processing fees to get the documentation requested in Discovery, any meetings you have with your attorney, any private investigators and it does not include any payments that a court will order you to pay in the form of child support and/or spousal support while the case is pending.  Often if there is a nonworking spouse, the working spouse will be ordered to pay living expenses for themselves and the non working spouse while the divorce is pending.  One paycheck that used to barely cover one household now has to cover two AND mounting attorney’s fees.   As most couples filing for divorce have modest assets, a home, two cars, and simple retirement accounts. $32,750 is closer to an annual income than a legal bill.  It simply does not make sense to spend $32,750+ in legal fees to get $10,000 in used furniture or to put $32,750 in legal fees on a credit card in an attempt to not get saddled with a $10,000 joint credit card bill. 

Bottom line - divorce can be tremendously expensive.  In fact it can be financially devastating to a family.  You can see that the farther down the litigation path a divorce case gets the more it costs.   There is an alternative; there can be another way.  Many will say that settlement is just not possible in their case.  Interestingly enough, most cases will end up settling, the only variable is when - on the eve of trial $31,000 and months and/or years later, or earlier and with a smaller tab and a little more dignity.  Two individuals can work on a settlement agreement on their own or meet with a mediator and have an attorney draft an agreement usually for no more than $1000.  Drafting and submitting the actual divorce paperwork can be completed for $500-$1000.  $31,000 could send a child to college, buy a car, pay off debt, or even fund a retirement.  Whether it’s your retirement or your attorney’s is up to you. 

Call or email today to set up a consultation and take your first steps towards settlement.  Foley@foleyfamilylaw.com (703) 310-7070. 

Children First

People divorce, it happens.  They are grown adults, they have to deal with the consequences of their decisions. The problem is that many of those consequences fall on the children of that marriage.  Why?  Because their parents make their problems the children's problems. Whether they do it unconsciously or very consciously in an attempt to gain leverage or to purposefully hurt the other parent is irrelevant.  All too frequently children end up carrying the baggage for their parent's trip through divorce.

I speak of this not only as a family law attorney who has seen her fair share of "tell them that they can have one more weekend with the kids if they give me $200 more in support" (no I'm not kidding) but also as a child of divorce myself.  I have seen both sides of the coin and I can tell you unequivocally, one side is FAR better than the other. 

My parents divorced when I was eight but because they attended every sporting event, every parent meeting and every ceremony together, most of my friends didn't even know they were divorced.   They did not talk badly about the other, they didn't tell me to keep secrets, or try to turn me against the other.  To be clear, they did not particularly like each other, they simply put that all aside where I was concerned.  They were just my parents, just like they were before.   Because of their actions, I do not perceive marriage negatively and I do not fell like I came from a "broken" home.  I had a great childhood and a positive relationship with both of my parents.  As a married mother of three now, I cannot imagine the internal personal turmoil that they each went through as their marriage ended.  As their child though, I can say I am so very grateful that they kept that baggage away from me.

On the other side of the coin are the kids who are forced to sit in the front row of the divorce show.   They have to hear the negativity, lie to one parent about the other, or worse, they are forced to chose between their parents.  Some of those children will deal with their parents divorce well into adulthood.


So, how do parents going through divorce avoid that scenario?  Agreed custody orders are a good place to start.  They give everyone involved, especially the children, a sense of security in what is otherwise a very turbulent time.  Parents know when they are going to see kids, kids know when they are going to see parents and everyone can begin to settle into their new "normal".   Agreed custody orders also allow parents to set a schedule that works with their individual family.  It may seem like a lofty goal given the circumstances, lets be honest, the alternative is to let a Judge decide.

Custody hearings typically only last a few hours and in those few hours a Judge forms an opinion about you and your children (whom they have never met).  Several years ago, as one of my contested custody cases ended, the sitting Judge looked at both parties and right before he issued his verdict he once again asked them if they could try to come to an agreement on the custody and visitation of their children because in his estimation, if after his verdict, both parties were unhappy, he had done his job.  Now, in some scenarios, agreed custody orders are simply not possible however these cases are not the norm.  They are cases that typically involve abuse, both physical and mental, addiction and neglect.  Simply because you are angry with your spouse or hurt does not mean you cannot or should not put that aside to ensure the well being of your children. 

In any divorce you have choices.  The most important choices you make surround your children.  The difference between the child for whom divorce is a bump in the road versus a tragic detour starts with a basic decision by their parents to carry their own baggage through the divorce and let their children be children, not leverage.  One way to ease the transition for your children is to work with the other parent on an agreed custody order.  This is not to say that an agreed custody order will make a divorce "easy" on your children but it will make it easier.  Not having the uncertainty of when they will see their parent next will make the transition far less stressful.  It will not always be smooth sailing, but the peace of mind of having the custody and visitation of your children set will aid you in navigating the remainder of your divorce with dignity.
 
Visit my website, www.FoleyFamilyLaw.com for more information on agreed custody orders or to set up a consultation to get information specific to your case.