Divorce is a difficult and emotional process for those going through it, and it can also be a costly one. 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. This means that the cost of divorce is a significant concern for many couples.
The median cost of a divorce in the U.S. is $7,000, while the average is between $15,000 and $20,000. However, 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.
The cost of divorce can vary depending on a number of factors. The state in which the divorce takes place, 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 are all important factors that affect cost.
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.
The cost of a divorce lawyer is another important factor to consider. 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.
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 also be a 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.
Flat fees and alternative fee arrangements are becoming increasingly common as well. Some lawyers charge a fixed or flat fee for a particular case rather than billing by the hour. This is most common with relatively simple, procedural cases like routine uncontested divorces, where lawyers can most easily estimate the workload. Flat fees are usually paid in advance.
In conclusion, the cost of divorce can vary greatly depending on a number of factors. It is important to consider the cost of a divorce lawyer, whether or not professional legal help is hired, the complexity of the couple’s finances and the involvement of child custody issues in the divorce. It is also important to remember that the more contested the divorce is, the more expensive it will be. However, by being aware of these factors and understanding the costs involved, couples can make informed decisions about their divorce.