There is no question that divorce is a costly proposition with much truth to the statement that the only ones who get rich during divorce are the attorneys. Legal fees are one of the harsh realities of the divorce process. According to Contractscounsel.com, "Divorce costs in the United States can vary widely, with most people spending anywhere from $15,000 to $20,000 and a minimum cost of around $7,000." That is a lot of money to most people. Emotional Upheaval Makes It Hard to Think Clearly Unfortunately, the trauma of divorce wreaks havoc on daily life, and its emotional upheaval makes it difficult to almost impossible to think clearly about how one's actions might impact billable hours and increase their legal expenses. It is imperative, in spite of all that is being thrown at you, to stay focused on how to keep your legal fees at a minimum. Why would you want to spend more money than is necessary? For those monied spouses who are responsible for paying both parties' legal bills, you have twice as much to lose. 5 Common Mistakes From my own personal divorce experience and from what I have seen with many of my clients, here are five common mistakes that can unnecessarily drive your legal bills through the roof and solutions to avert them. 1. Using Your Lawyer As a Therapist Wow, I cannot tell you how many times I've seen this one play out. I fell victim to this during my own divorce. Most divorce attorneys will attest to the amount of time they spend talking to their clients about non-legal issues because they are so overwhelmed, angry or frustrated and don't know where to turn. With hourly rates being what they are in the divorce world, it is just not cost-effective to talk to your lawyer about every argument or disagreement with your soon-to-be ex-spouse. According to TheExit.com, the national average for divorce lawyer rates is $270 an hour, with New York at $400 an hour. I can tell you unequivocally, that this is far lower than reality. From my experience working with many lawyers in the New York-Metro area, average divorce hourly rates can range from $400 on the very low side to well over $700 and hour. Solution: Having the right professional to listen, provide perspective and help you work through your feelings and experiences productively is a far better investment than spending hours talking to your attorney. The right therapist or divorce coach can also assist with making the distinction between which issues are strictly emotional and those that need to be addressed with your attorney. Not only will you save on legal fees, but you will be working on your own empowerment and building a plan for a happy, fulfilling future. 2. Not Understanding Billing Practices Hourly billing is a common way lawyers charge for their services. Unfortunately, most people going through divorce do not ask enough questions or listen closely when lawyers explain the details of their billing structure. For example, most lawyers take a retainer - most commonly between $5000 and $10,000 - and then their "billable rate" will go against or be deducted from this retainer. At $500 an hour, that retainer can go pretty quickly. Your lawyer tracks all time spent on your case, which includes meetings with you, phone calls, reading and responding to email correspondence with you and the opposing counsel, research, preparing legal documents, court appearances, and any other tasks related to your divorce. If you have other professionals such as an accountant, that need to speak with your attorney, you will get billed for this time as well. Solution: Make sure you understand all billing practices for your lawyer's firm including their "increment billing" practices (how they break down the hour) so you can stay in control and avoid any surprises with legal fees being incurred. 3. Not Building Your Own Divorce Dream Team It is important to take a forty-thousand foot view of the specific areas of your life that will be affected by your marriage break-up and how to best address each of them. Your attorney knows the law, the legal system and what rights you have. However, they are not experts in every area that will make up your divorce agreement. All too often, individuals rely on their attorney to know the nuances of accounting, tax, financial planning, credit and other specific disciplines. You may be spending more money discussing these issues with your attorney or having your attorney argue with opposing counsel, rather than utilizing the expertise of professionals who can save you time and assist your attorney. Solution: Build a team of trusted professionals in key non-legal areas who can provide the right advice for negotiating the best possible divorce agreement terms for your future. These professionals not only charge less than your attorney, but some don't charge any fees at all, saving you legal bills and even enhancing your lawyer's ability to advocate for you in less time. A divorce coach can serve as the hub for clarity about the process and provide additional professional referrals. 4. Not Being Organized During divorce, you will have to access lots of information, records, and documents. Prior to my divorce, I really had no idea what I was going to have to provide and everything my lawyer requested was a new adventure in trying to pull things together. If you provide your lawyer with a big box of papers, receipts and financial records, it is pretty obvious that they will have to spend many billable hours sorting through everything and talking to you to fully understand it all. This can add thousands of dollars to your bill. Solution: The more organized you can be with your documents prior to even going for a consultation, the more economical it will be for you. I suggest meeting with your accountant or finding one who can direct you with what you need to put together. This will enable you to move forward with a better understanding of where you stand, as well as result in a more productive attorney consultation since you will be providing everything needed to advocate on your behalf. 5. Inability to Agree This may seem like a ridiculous point to put in here. You are probably thinking, "if we could agree, we wouldn't be getting divorced." However, what most people do not understand is that if you have decided to proceed with divorce, then the more you continue to disagree on how to finalize the terms, the more it will cost. Sadly, the biggest issue in delaying divorce and spending way too much money is the inability for one or both parties to be reasonable and give up being argumentative. I'm in no way saying this is easy. With emotions running high and a desire to "win", it's easy to get stuck in a cycle of arguing and feeling victimized. The result is unending back and forth between attorneys, additional court dates and yes, higher legal bills. Solution: Here is where working with a professional therapist or a divorce coach is your best bet for gaining clarity over the situation to facilitate perspective. If your soon-to-be ex-spouse is being difficult, you will be able to keep your eye on your new life goals and minimize being triggered to continually engage in the back and forth pattern that only serves to drive up billable hours. This is a key component for a quick resolution and minimizing your legal expenses. - Elisa
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ELISA
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Elisa Valentino
HOLISTIC BEHAVIORAL PRACTITIONER DIVORCE & LIFE TRANSITION COACH SPIRITUAL LIGHTWORKER PUBLIC SPEAKER PODCAST HOST |