Many couples struggle to agree on financial and personal issues in the aftermath of a separation. Compared to litigating these issues in Court, mediation presents a much more affordable and faster process.
Most mediators offer a flat fee structure, which is the ideal option for most parties. This includes the consultation, preparation, and every mediation session.
1. Mediator’s Fees
If you can’t come to an agreement with your spouse about the important financial and personal issues in your divorce, mediation may be an option. The process involves a trained third party who oversees negotiations between two parties, working with them to help them better communicate, understand the law, clarify expectations and find compromise.
There are several factors that can affect the cost of mediation, including the level of experience and expertise of the mediator. Attorney mediators, for example, tend to charge more than non-attorney mediators. Similarly, mediators who specialize in certain areas like family law and/or workplace conflicts may charge more than those who focus on other issues.
You should also consider whether the mediator charges a set-up fee or billable hourly. Additionally, if you plan to hire outside experts to assist with the process, such as financial professionals or retirement account evaluators, this will add to your overall costs.
2. Lawyer’s Fees
While court-ordered and community mediation are usually free, private mediators charge either an hourly rate or a flat fee per session. Attorney mediators (who are licensed attorneys with experience in divorce cases) typically charge the highest rates.
More complex cases may take several sessions to resolve, which can drive up the overall cost of a divorce mediation. In addition, some issues will require hiring third-party service providers like real estate appraisers or QDRO experts, which can also add to the total mediation costs.
Using unbundled legal services is another way to lower mediation costs. For example, some lawyers will only work on a contingency basis, which means that they’ll only get paid if they win the case or settle it for a reasonable amount. The purpose of this arrangement is to reduce the incentive for parties to unnecessarily prolong litigation. However, some states prohibit this type of fee arrangement in family law cases.