The Financial Cost of Divorce

This Week’s Blog by Carole T. Orland

What will my Divorce Cost?

The short answer is that it is hard to know at the outset what a divorce will eventually cost.  Since virtually all divorce lawyers in Connecticut bill on an hourly rate, the cost is a function of time spent on the case. At Broder Orland Murray & DeMattie LLC, we have handled divorces ranging in cost from a few thousand to millions of dollars.

Is Cost Related to the Complexity of the Case?

Not necessarily. Some of the more financially complex cases settle quickly when the parties, their counsel, and experts are sophisticated and are financially savvy. These cases sometimes involve a variety of compensation components, including for example, stock options, RSUs, SARs, phantom stock, and deferred compensation. While this can initially appear daunting, it doesn’t have to be if the parties are well-educated about income variants.

Will the Cost of my Divorce be Minimal if our Assets are Very Modest?

We would hope so and at our firm we strive to make it cost-effective for our clients in every case. Unfortunately, different pressures can arise when the marital estate is relatively modest and there isn’t enough money for both parties to live their lives post-divorce in the manner they were doing so during their marriage. In these cases particularly, it is imperative to do a cost-benefit analysis and to be real about the results. 

Will Children’s Issues Increase the Cost of Divorce?

Quite possibly. It is in everyone’s best interest to settle on a realistic Parenting Plan as early as possible in the case. If that doesn’t happen, the Court will sometimes appoint a Guardian Ad Litem (GAL) as an investigatory arm of the Court whose role it is to report on the best interests of the children, or Attorney for Minor Children (AMC), who will act as an advocate for the children taking into consideration their best interests. The cost of these additional individuals will be borne by the marital estate and having them involved typically signals additional litigation and therefore, higher cost. 

What Other Factors can drive up the Costs of a Divorce?

Divorce costs may spiral upward for many reasons, for example: one or both parties may not be cooperative in the discovery process or have unrealistic expectations.  Attorneys and clients may not be in sync about objectives and goals. The Court system is fraught with inherent delays and continuances mean more time and more money. 

What can I do to keep my Divorce Costs from Getting out of Control?

• Hire a reputable and knowledgeable attorney.
• Make sure you are always on the same page as to how your case is being handled.
• Settle the kids’ issues as soon as possible. Attend to discovery deadlines.
• If finances are complex, make sure to assemble a good team of experts who can educate you about the various components. In short, demystify the finances so you can move forward to settlement.
• Be reasonable in negotiations with your spouse even if there are bad feelings, as is typically the case in divorces.
• Pay attention to your monthly bills and your retainer status.

At Broder Orland Murray & DeMattie LLC, with offices in Westport and Greenwich, CT, we strive to make our clients’ divorce cases cost efficient, whether the case involves a modest marital estate or is a high net-worth or high-income earner matter. We constantly counsel our clients on the cost-benefit of decisions as the case progresses. Our goal is to achieve for our clients the best possible outcome at the most reasonable cost.