People often ask me why divorce can be so expensive and what they can do to reduce those costs.

The answer is not as straightforward as one might think. Divorces can be costly for a number of reasons, both financially and emotionally. In this article I look at the financial aspects of divorce and what you can do to try to keep those costs down.

The costs of a divorce

1. Legal Fees
   There are various ways of trying to resolve matters between you and your spouse. It is not uncommon for couples to involve solicitors in the process, especially if they cannot reach an amicable agreement between them.
   Solicitors typically charge by the unit. They divide their hourly rate into six-minute units. This means costs can escalate quickly, with one brief email being charged at a unit and lengthy emails being charged at two or more units. Typically, solicitors’ hourly rates vary from £150 to £500+ per hour plus VAT. An hour’s meeting followed by a detailed letter summarising the discussions can cost the best part of £1,000.
   Solicitor’s expertise can be invaluable, and they are worth their costs when providing legal advice. However, clients do not always use them effectively and can run up costs seeking advice that is not legal or relevant.
   Long, drawn-out disputes can drive up these costs. Those that involve a financial settlement, contact arrangements with the children, interim issues like covering the costs of the mortgage payments, or the conduct of the parties can be particularly expensive.
   Legal fees can mount up if you involve your solicitor in aspects of your separation that are not ‘legal’. Go to others to get assistance on practical or emotional issues and if you solicitor suggests that some points are not worth addressing, take their advice. Solicitors want to remain focused on the key legal issues.
2. Court Costs
   If your solicitors are unable to resolve matters or one party is unwilling to engage, it might be necessary to issue an application to court to resolve the finances or the arrangements for the children.
   A court application might also be necessary if one party is harassing, threatening or abusing the other and they need the protection of some sort of restraining order.
   Applications inevitably increase your legal fees. There are also other fees that need to be considered such as court fees, barrister’s costs for court appearances, obtaining expert evidence, and document processing. These costs can quickly add up.
   In financial cases, it is not unusual for there to be at least three court hearings with barrister’s costs ranging from £1,500 to £10,000 plus VAT depending on the type of hearing or the seniority of the barrister instructed.

   You should be aware that an increasingly common issue is a lack of ‘judicial availability’ and court hearings having to be cancelled at the 11th hour because no judge is available. Often barrister’s fees will have been incurred and will be wasted because the case will not be relisted in the court timetable for three to six months.

3. Asset Division
   One of the most important considerations in the divorce is how assets should be divided. Splitting up property, savings and investments, pensions, businesses, or debt can be complex and may involve valuations, financial analysts, or forensic accountants.
   A report to consider how a pension should be divided to produce an equal income on retirement usually costs between £1,500+ VAT to £3,000 plus VAT depending on the complexity of the pensions themselves and how many different options you or your solicitors want to consider. Business valuations are usually significantly more. You must consider carefully the merits of these reports and whether the costs are proportionate.
4. Disputes over the children
   If you have children, disagreements about their arrangements can require child psychologists, social services, drug and alcohol testing, and lengthy court hearings.
   Again, it is not unusual to have three or more court hearings where barristers might be required to ensure the best outcome available.
5. Emotional Conflict
   High conflict divorces often lead to more work for your legal team. Lengthy letters from one solicitor to another regarding behaviour / conduct often demand an equally robust response, all of which takes time and money. Unfortunately, this is often all irrelevant to the ultimate financial settlement and the arrangements for the children.
   High conflict individuals often fight about the ‘principle’ and are not easily swayed by their solicitor, who might point out the lack of merit in pursuing a specific point.
   In addition, the emotional cost of engaging in this way tends to make it significantly more difficult to reach an agreement because of the emotional conflict and the desire for one-upmanship.
6. Lack of Preparation
   When one or both parties are not organized, costs can increase further.
   When dealing with the finances, you will be required to provide a full financial disclosure and probably will have to complete a financial statement (Form E). Poor preparation of the Form E, missing financial documents, or a lack of clarity about assets can all cause delays and increase your legal costs.
   Clients who find it hard to stay on task or organise themselves and stay focused are also likely to incur more costs. Many people find the process overwhelming, but this is particularly true of clients who have ADHD. Make sure your solicitor understands if the task might be difficult so that they can support you or get support from elsewhere.

How to Reduce Divorce Costs

1. Use of alternative (non-court) dispute resolution methods
   • Mediation involves a neutral third party helping you reach an agreement without court. The costs of the mediator are shared between you, which reduces your legal costs. If effective, a proposal can be reached in a matter of four to six mediation sessions.
   • Collaborative approach involves solicitors working together cooperatively or with one solicitor acting for both parties.
     These methods are often far cheaper than litigation, but are usually only successful if parties approach matters amicably and there is no significant power imbalance or abuse.
2. Be Organized
   • Prepare for meetings with your solicitor in advance. Remain focused throughout and avoid discussing issues that are emotional rather than legal.
   • Gather, prepare and collate financial documents (tax returns, pay slips, property records) before submitting them to your solicitor.
   • Prepare a summary of all expenditure that might be questioned and avoid being vague in your disclosure. Lack of clarity will raise concerns about your transparency and inevitably result in a request for further information, which will add to costs.
   • Know what you want and what you’re willing to compromise on. What are you hoping to achieve and is it realistic? Have a clear plan of what issues you are prepared to compromise on and what your red lines might be. Reality-check them in advance to make sure that they are reasonable and realistic.
   • Make sure your solicitor provides you with a cost estimate and update this regularly. They should work effectively with other members of their legal team. A senior solicitor should be delegating the more straightforward work to less experienced junior solicitors, trainees or paralegals. Check your bills carefully and make sure that they are working within their original cost estimate.
3. Use your solicitor strategically
   • You can use a solicitor for limited purposes (e.g., reviewing a settlement agreement) rather than using them for everything that needs to be done.
   • Turn to others where possible to keep your legal fees under control. Counsellors and psychotherapists are better qualified to deal with emotional issues and have a much lower hourly rate.
   • Divorce and separation consultants who understand what is required can help you prepare in advance of meetings with your solicitor, again at a lower hourly rate. They can help you prepare your financial disclosure (Form E) and consider your spouse’s disclosure so that your solicitor spends less time on your matter.
   • Although people are concerned about the additional expense of other professionals, your legal costs are likely to reduce dramatically if you do not overwhelm your solicitor with issues that you or others can deal with more effectively. It is also likely to improve your working relationship with your solicitor.
4. Communicate Directly with your Ex if possible
   • If you can, communicate directly with your ex-spouse / the parent of your children on some matters, for example, arranging a pickup or drop-off time should not need a solicitor.
   • Choose a communication channel that works for you and stick to that communication channel. Bombarding each other with texts, emails, telephone calls and WhatsApp messages is unlikely to facilitate good communication. Parenting Apps are a great way of communicating.
   • Always avoid involving the children in the communication between you and your ex. It puts unnecessary pressure on the child and inappropriately involves them in adult issues, which will be harmful
5. Avoid Court if Possible
   Settling out of court is typically much less expensive and should resolve matters much faster than court proceedings. Consider arbitration or employing a private ‘Judge’ to resolve specific issues so that you avoid the long delays in court and the possible wasted barrister costs referred to above.
6. Use Online Divorce Services

   For simple, uncontested divorces, the Government online services can guide you through paperwork for a fraction of the cost but do not forget that the finances also need to be dealt with. Ending the marriage is not the same as bringing your financial relationship to a conclusion.

Words of caution

• Although negotiating between yourselves has its advantages, there are many occasions when it is not appropriate. If there is a significant imbalance in your understanding of the finances, your financial positions, or a party is controlling or abusive, it is usually sensible to get professional help.
• Try to understand what your legal rights are and be cautious of friends or family suggesting that you could get a ‘better’ financial settlement. Each case turns on its own specific circumstances. A friend might have got 65% of the money in their home, but if the home had equity of only £350,000 and that person was unable to get a mortgage, that might have been a reasonable settlement. Your settlement might be very different if you could get a mortgage and / or your home is worth significantly more than theirs.
• Always insist on having proper financial disclosure, particularly if you have not always been involved in the finances. If there are complex assets, pensions, or businesses, beware of settling without having the assets valued by an expert.
• Do not be bullied into a settlement. Be concerned if your spouse suggests that they are making the ‘best offer’ and that if you go to a solicitor, they will withdraw that offer.
• Do not use children as a bargaining tool and/or for leverage. This could result in the other parent making an application to court which will increase your costs significantly. It could also harm the children or damage your long-term relationship with them if they become aware of this.