Wednesday, 27 June 2012

The cost of Divorce

Much is being made of legal costs at the moment, with the impending removal of Public Funding for many family law cases, the start of fixed fee models and national brands undertaking legal work but, whatever the future holds, there will always be a cost for family law services and, considering the issues, complexities and future impact of the work I imagine most can understand why.

That said, in this climate costs for family law matters are a real issue and one that no doubt worries clients as much as the process of Divorce itself.

There are some steps that you can take to limit costs sensibly – by this I do not mean undertaking all of the work yourself for, although people try to do so, I find that the majority realise that whilst there might be some things that they can do themselves, marital financial negotiations or proceedings concerning children involve issues and arguments of which they are not fully aware or are ill-equipped to deal with.

Frankly, dealing with the emotional fall out of divorce and separation, day to day parenting, your job and simply functioning is probably quite enough – the following pointers, however, might just help you when it comes to limiting the costs:

1.     Write down the history

This may sound like an awful lot of work but actually it can be very helpful and will avoid lengthy meetings with your Solicitor to tell them the information. In terms of the Divorce proceedings themselves, you might be considering the option of petitioning on the basis of your spouse’s behaviour – in that case you will need to provide details of such behaviour (all of which you can set out now). At the very least, it should allow any Solicitor to advise you whether a behaviour petition is an option. In addition, when it comes to dealing with your marital finances it will be necessary for your Solicitor to know if there are any issues as regards your financial contribution towards assets, whether they were inherited or gifted, whether they were accrued from a business etc. etc.

Setting out the history – both of the relationship and the assets at the outset will ensure that you are off on the right foot. Many clients of mine tell me, having undertaken this exercise at my request, that they had forgotten things that came to mind because they were focussed on this task – much better to remember earlier on in the process!

2.     Find a Solicitor offering a free initial consultation

You should have a good choice in today’s legal market with many firms offering free initial consultations. It is important to use this time to work out whether you can work with the Solicitor, whether you like the “feel” of the firm and obtain as much advice as you can as regards your next steps.

3.     Do some of the paperwork yourself

When I referred above to clients undertaking some of the work themselves, I was referring to the more paper-based exercises – where no real legal expertise is necessary. The Divorce proceedings (by which I mean the paper-based main suit proceedings that take you from “married” to “divorced”) are a classic example.

This process is (as recently one judge put it) administrative and, whilst there are a couple of areas that you may need guidance on – the forms themselves are straightforward and designed to allow non-lawyers to complete them.

Solicitors may quote between £600-£800 + VAT for completing the forms and dealing with the process for you (liaising with the court etc.) and indeed in terms of time (assuming an hourly rate of £200 per hour) this would be about right. If you are, however, prepared to spend your own time (for which I assume you will not charge!) then you may be able to save some money in the process.

Many clients simply do not have the time or inclination to undertake the paperwork themselves and are content to instruct me to do so but I do have more clients nowadays taking the view that they would rather spend money on me negotiating their marital finances – which is a much more complex area – than form-filling – fair enough!

Solicitors may, myself included, offer a bespoke fee arrangement if you wanted to complete the forms yourself but wanted them checked by the Solicitor – which would see a reduced fee. That, it seems to me, brings you the best of both worlds.

When you come to dealing with financial negotiations – do as much of the chasing around for documentation as you can yourself. Contacting banks, credit card companies, lenders, estate agents etc. all takes time but if you can obtain the information yourself, as opposed to your Solicitor having to write out for it that will help limit your costs.

4.     Beware fixed fees

Fixed fees are fine and I do think they offer certainty and that they will become more common as we go through this year and into next.

I was always told to read the small print – probably something to do with my legal training! – this is exactly what you must do.

There is a difference between what a lawyer means by “Divorce” (the paper-process, main suit that takes you from married to divorced) and what a person on the street would understand by such a word (usually the entire thing – financial negotiations and child arrangements included).

There is nothing underhand in the fixed fee offerings by solicitors and all the ones I have seen have carefully worded small print explaining that the Court fees are extra and that financial negotiations or issues concerning children are excluded from the fee.

Just be aware that the offer might not be what you would expect on the basis of your understanding of the word “Divorce”.

5.     Consider Mediation alongside legal advice

Mediation should be discussed with you by any Solicitor and since early 2011 attendance at a Mediation Information and Assessment Meeting has been mandatory, save in excepted circumstances (for example where there is Domestic Violence etc.)

The benefit of Mediation, where parties are prepared to engage fully in the process, should not be underestimated and I have seen couples negotiate fair and sensible settlements, reduce the length of their matter and remain amicable and able to discuss issues concerning the children going forward.

The benefit in successfully negotiating a settlement through Mediation, as far as costs are concerned, is obvious in that Court proceedings will not be necessary and any work that the Solicitor needs to do following the agreement will be limited to drafting the necessary paperwork and implementation of the agreement itself.

There is a cost to Mediation sessions but when you consider the length of sessions and the ability to make decisions quickly, as both parties are present, this is still a cost effective approach.

Legal advice should always be sought alongside Mediation sessions to make sure that discussions take account of any important legal issues. If this doesn’t happen it sometimes leads to a situation in which parties consider that an agreement has been reached but in fact the agreement is unfair to one party and may not be upheld by the Court, or that party, on taking legal advice, withdraws from the “agreement”.

6.     Be pragmatic – don’t let your emotions take over

Negotiation is one area where you will see your costs rocket if you are not careful. Arguing over the principle of a matter is great but be prepared to spend money. I’m not saying that your points and arguments shouldn’t be raised but take advice from your Solicitor about the strength of your arguments – push the stronger ones (this is where trust in your Solicitor is important). Don’t lose sight of the monetary value of your arguments – if you are £5,000 apart, don’t spend the same amount arguing the toss – split the difference!


Above all know what you want to achieve – for some it will be for the paperwork and process to be taken off their hands – at whatever cost. For others it will be to limit the costs as far as possible, even if that means taking on more of the work themselves. Be honest with your Solicitor at the outset and discuss the issue of costs in detail and at the start.

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