Comparison of Mediation and Divorce

COMPARISON OF THE AVERAGE FINANCIAL COST OF DIVORCE FEES
Adapted from www.peace-talks.com

Think: Do you really want to spend your children's college education account, your vacation money, and the full value of your home on your divorce? Consider divorce mediation or custody mediation as a lower-cost, lower-stress alternative:

Mediation, Counseling & Coaching at Compass Divorce Center (With additional services)	Litigation*	Life Beyond Divorce	Savings by Using Mediation Instead of Litigation	Time Value of Money (Savings) Over 20 Years**	Total Savings By Using Mediation
$800-1200 flat fee	Low conflict divorce, with some negotiation but uncontested final judgment. Both spouses have attorneys who charge $250-300 per hour: $26,500	Trip to Hawaii for two, two weeks, all-inclusive package including room with a view: $10,000	$25,300	$54,778	$54,778 Enough for over 5 trips to Hawaii
$2,400 flat fee	Limited contested divorce case, no children, trial on common financial issues $46, 500	1976 Rolls Royce Silver Shadow classic automobile, fully refurbished: $15,000	$45,100	$95,095	$95,095 enough for 6 classic Rolls Royce cars
$3,900 flat fee	Contested divorce case with custody issues which settles right before trial date: $83,300	Undergraduate education, 4 years in-state tuition on average: $26,000	$79,400	$169,045	$169,045: enough to send 6 children to CSU for an undergrad college education
$4,400-$5,900 flat fee	Fully contested custody case which proceeds to trial : $183,300	Law School education, 3 years' tuition, Southwestern Law School , Los Angeles , California : $105,000	$177,400	$381,584	$381,584 enough to send 3 people to law school *and* buy 4 classic Rolls Royce cars
$5,900 flat fee	Fully contested custody and financial issues case involving child custody evaluators and forensic valuation experts for business, pensions, etc.: $234,000	4 bedroom, 2 bath home with water view, Ft. Lauderdale, Florida , $375,000	$228,100	$474,269	$474,269 Enough for a house in Ft. Lauderdale with enough left over to send 3 children to college and $21,000 leftover.

* “Think we've exaggerated the costs of litigation? Consider this quote from one of Los Angeles' top family law judges made at the Beverly Hills Bar Association meeting in September 2002: “By the time we see [divorce] cases in court, most people have spent all of their community assets on the divorce itself. By that time, we're just dividing debts and allocating attorney's fees.” Or as Judge Marjorie Steinberg, the presiding Family Law judge, stated in her May 4th, 2008 interview with the Los Angeles Times Magazine article, a divorce completed for less than $100,000 is "pretty cheap." While Collaborative Divorce is less expensive than litigation, it’s still significantly more expensive than mediation according to the American Bar Association Journal’s December 20, 2007 edition” (as stated on www.peace-talks.com)

** For this calculation, we’ve subtracted the cost of mediation from the cost of litigation, then invested that at a 4% simple interest rate. This figure represents the amount of money you'd save by mediating your divorce instead of litigating, and how much that savings would be worth if you invested it at 4% interest for 20 years.

***Our fees change from time to time, so please call us for current rates. We also offer pro bono mediation if you have qualified for that through the Alaska court system.

****This chart was adapted from information provided from www.peace-talks.com