Getting divorced is never fun, but there’s one thing that can make the process feel even more daunting: a surprise bill. When your lawyer sends you a bill you don’t understand–or worse, can’t afford–it compounds the stress of an already tough situation. And if this is something you’ve experienced, you’re not alone: in a survey of nearly 300 respondents, all of whom have gone through divorce cases with a lawyer, over 30% reported that they were surprised by a bill they received during the process. If you’re considering working with a lawyer who works on the typical, billable model, there are a number of ways they can (and might) overcharge you.
Factors that impact the cost of a divorce
Factor 1: Contested or uncontested divorce
Contested divorces are typically more expensive than uncontested divorces because they require more negotiation and litigation, so it’s important to understand which type of divorce you are pursuing.
In an uncontested divorce, everyone agrees about the terms. For example, both parties might agree to shared custody of their child and about how they’ll divide up their assets.
A contested divorce means that the parties aren’t in agreement. Either one spouse wants a divorce and the other doesn’t, or the parties disagree on the terms of the divorce. For example, both parties may want to keep the same home, or both may want full custody of their child. Typically, contested divorces involve the courts.
Factor 2: Divorce method
There are multiple methods of divorce and varied costs associated with each.
Mediation
Mediation is typically the preferred method of divorce, as it can provide cost savings and cooperation. It requires a “mediator” to help guide discussions between parties. The mediator is neutral and doesn’t represent either party.
Arbitration
Arbitration is similar to mediation. The difference is that it involves a neutral outside party, called an “arbitrator”, who listens to evidence from both sides and reaches a decision on behalf of the divorcing parties. In a non-binding arbitration, parties may go to trial if they don’t agree with the decision of the arbitrator. In a binding arbitration, parties agree to accept the arbitrator’s final decision about the divorce terms—they typically can’t appeal. Because this process occurs outside a courtroom, it’s cheaper and more relaxed than going to trial. However, each party has to pay their share of the arbitrator’s fees, and they’ll pay an attorney’s fees if they choose to be represented by counsel during arbitration.
Trial
A trial is generally considered the most expensive divorce method. It requires attorneys, court fees and lots of time going back and forth negotiating with the other party. More time means more money. Most divorces are settled without a trial. However, couples who can’t reach an agreement through other means such as mediation or arbitration typically end up in a trial. Couples with a large income disparity may also end up at a trial.
Collaborative divorce
Finally, there is collaborative law. This is similar to mediation, but each party hires an attorney. They also agree from the outset that they won’t go to court to settle their dispute.
Factor 3: Kids or no kids
If you and your spouse share minor children, you’ll have to figure out the terms of your custody agreement and child support.
Child custody
There are two types of custody:
- Legal custody stipulates each parent’s right to make major decisions about the health, welfare, religion, education, safety and well-being of minor children.
- Physical custody specifies which parent the minor child lives with overnight on most nights of the week. If parents share custody, their child spends some nights each week with one parent and the remaining nights with the other parent. If one parent receives primary custody, the child lives with that parent more often. Terms of note are “primary caretaker”, “custodial parent” and “parent of primary residence”, all of which refer to the parent who receives primary custody. “Noncustodial parent” and “parent of alternate residence” are terms for the other parent.
The judge considers many factors when determining the outcome of a child custody dispute, which is why it may be helpful to have an attorney if you find yourself in this position. Also, there are fees associated with filing custody petitions and responses. These fees vary court by court.
Child support
The calculation to determine child support varies from state to state.
As an example, New York state determines child support by adding together both parents’ net income and multiplying that number by a specific percentage. This percentage differs from state to state. In New York, the percentage is as follows:
| Number of children | Percentage |
| 1 | 17% |
| 2 | 25% |
| 3 | 29% |
| 4 | 31% |
| 5+ | No less than 35% |
A judge determines how much child support each parent pays. They base this amount on each parent’s contribution to their combined net income. If one parent has a job but the other doesn’t, the employed parent pays more child support.
Things that could increase divorce costs
The allocation of marital assets and debt
The more assets to be divided, the longer it may take to reach an agreement, which means that the divorce will cost more. If the parties created a prenuptial or postnuptial agreement, however, the division of assets may not be as time-consuming.
Dividing marital debt may also take time. If the spouses can’t reach an agreement, a court will assign debts and properties to each party. The judge will consider the reasons for the debt, how much debt there is and who’s responsible for it. This increased negotiation and litigation could ultimately result in the divorce costing more.
Having minor children
Reaching an agreement on issues pertaining to minor children, such as custody and child support, can be grueling. And the more time you spend arguing with your spouse over these concerns, the more expensive your divorce will be.
Your divorce attorney
Divorce attorneys can be very expensive: Rates range anywhere from $100 per hour to upwards of $500 per hour.
While it’s important to hire someone you trust, it’s also smart to take their rate into account because the whole process may take longer than you expect.
Marble is a great option because they break your case down into services and give you a fixed fee for each service, so you’ll generally know what it’ll cost in advance.
How law firms typically charge–and overcharge
Many lawyers and law firms charge by the hour, which is called a billable model. This means you’ll be charged a lawyer or law firm’s pre-set hourly rate for every billable hour they work on your case.
Typically, a lawyer or firm that charges in this way will also require a retainer, a fee that can often range anywhere from $500 to $5,000. Lawyers subtract the cost of the billable time they work on your case from the retainer fee, but many people find that it dwindles surprisingly quickly.
It’s standard practice for lawyers to keep track of their time every six minutes (or one-tenth of an hour) and bill accordingly. Unfortunately, some lawyers take advantage of this model. In fact, the California State Bar once alleged that 10-30% of lawyers over-bill their clients.
Let’s use a lawyer writing an email as an example. Your lawyer may take five minutes to send you an email with a case update. But if they get caught up in a non-work related conversation with a colleague or spend time dealing with a tech issue that requires IT before hitting send, they may inadvertently bill you for that time, too. And with the average hourly rate of a New York-based lawyer sitting between $76 and $506 per hour (though some lawyers rates are far higher, with associates at Big Law firms charging well into the thousands per hour), that “bill-padding,” as it’s known, could add up to a hefty additional fee.
There’s also the concept of bill-churning, which came to light about a decade ago during a court case involving a prestigious law firm. Bill-churning is when a lawyer or firm creates unnecessary projects for or adds unnecessary associates to an existing case. For example, if your lawyer asks you to jump on a call, but when you join the call, there are multiple associates listening in as well–it may be the case that each one of them is billing you for that time. In many cases, there’s nothing that legally prohibits a law firm from engaging in this practice, but it’s not fair to you, necessary for your case, or easy on your wallet.
The hidden cost of legal fees
Unethical and unclear billing practices are one thing, but what about the completely fair but totally unexpected costs of divorce lawyers? In most cases, these are the out-of-pocket legal expenses, meaning the relevant personal expenses lawyers incur while working on your case. One of the biggest culprits for fees in this area is transportation, which is why it can be good to work with a local lawyer wherever possible. You’ll need to work with a lawyer who’s licensed to practice law in the state you’re getting divorced in no matter what, but it’s also a good idea to make sure they don’t live hours away from your county court or anywhere that would require them to make long drives to represent you–they may well bill you for transportation costs, whether that’s gas or a car service.
Lawyers can also charge for printing copies of documents, as well as postage for anything they need to send to you or the opposing party in your case for signature. To avoid this, you can ask at the outset of your case that your lawyer send as many documents for digital signature as possible. Digital signature platforms like DocuSign typically let you sign a number of documents for free, which could save you shipping costs throughout your case.
How to check if you’re getting overcharged–and when to dispute
If you’re already working with a lawyer who charges by the hour (and many of these lawyers charge hefty upfront retainers, too), there are a few ways to ensure the costs don’t get too out of control–but they’ll require a lot of attention and effort on your part.
First, know your rights: in most states, you have the legal right to “request and receive an itemized bill from your lawyer at reasonable intervals.” If your bill is costlier than expected, or if you received one out of nowhere, take a look and make sure the services you’re billed for feel like they match the level of legal care you’re receiving. If you look at your itemized bill and notice you were billed three hours for an email that was one sentence long, you may have cause to dispute the fee. It is worth noting that disputing a fee may require arbitration, which could mean even more bills.
The easiest way to avoid billing issues
If you’re looking for a stress-less payment experience–and more financial autonomy, you might want to explore your options with firms that don’t operate on a billable model. Law firms like Marble operate on a pay-per-step, limited-scope basis. That means we charge you an upfront for one step of your case at a time, and we only charge for the specific services your case requires. Divorce is stressful enough–paying for it shouldn’t have to be.
