Is Divorce Mediation Appropriate for Couples with Substantial Assets and/or Income?

Divorce Mediation has Significant Benefits for Couples with Substantial Income and/or Assets

Non-adversarial, less stressful, cost effective
With a clear focus on the legal, financial and personal needs of the parties (and their children), mediation is the most non-adversarial and likely the least stressful way to get through a divorce. Upper-income couples frequently see the greatest benefit of a mediated—as opposed to court litigated—divorce. Couples with higher incomes often pay higher retainers to attorneys because of an assumption by the attorneys that if there are significant assets there will be significant conflict. Additionally, the more assets a couple has the more complex the issues may be, and dealing with this increased complexity in litigation dramatically raises the costs. In contrast, in mediation complexities can be addressed efficiently and effectively, without dramatically escalating the costs or the conflicts.

No matter what their income(s) and assets are, most people who are getting divorced are concerned about keeping costs down especially when their future is uncertain. Added to their personal situations, the state of the economy is another good reason that divorcing spouses are often cautious about spending money.

Mediation is private and confidential
Mediation offers the benefit of confidentiality, unlike a litigated divorce. Mediation sessions are private and confidential personal information is not discussed in open court. With mediation, financial disclosure forms listing assets, debts, income and expenses are completed by the parties and exchanged with each other, as required by law, but are not filed in the court’s public record. The parties may also choose to file a simple memorandum of their settlement agreement instead of the full (financially-detailed) agreement.

Experienced family law attorney/mediators
NCRC’s divorce mediators are experienced family law attorneys who can provide legal information to the couple about the relevant law, including division of property, support (both spousal and child) and if there are children, how they share the time with and co-parent their children. Many mediation participants have consulting attorneys, financial planners and other advisers, as needed, to provide them with sufficient information for decision making. Such professionals are welcome to attend the mediation sessions with their clients, subject to the other spouse’s agreement.

Financial benefits
Due to the shorter duration and lower costs, a mediated divorce offers a significant advantage in preserving assets for the parties and their children.

An average litigated divorce costs about $17,000 per person. A highly contentious divorce can easily cost over $100,000 and take more than a year to complete due to a protracted period of pre-trial motions, discovery, and the possibility of multiple continuances.

An average mediated divorce costs between $2,500 and $5,000—with the costs typically shared by the parties.

Flexible timeframes
The mediation process may be completed in as little as three to six months. But, couples needing more time to adjust can take more time. Appointments are set at the couple’s mutual convenience rather than based on the court’s and attorneys’ schedules.

Personal benefits
Due to the collaborative, non-adversarial nature of mediation, relationships currently under stress may not fracture entirely. Mediation may end up improving relationships because it facilitates direct communication between parties. Litigation is, by nature, adversarial and with each side paying an attorney to advocate on his/her behalf; the parties may lose this important opportunity for direct, healthy communication.