How to Pay for Your Divorce?
Divorce can be a costly process, but there are various financial aids and strategies available to help manage the expenses. This guide outlines 6 options to help you with those financial stresses. Let’s take a closer look at how to pay for your divorce.
Option 1 – Family Mediation Fixed Fee Packages
Family Mediation can be a more cost-effective alternative to court proceedings. It involves a neutral third party helping you and your spouse reach an agreement. Mediation is often quicker and less expensive than going to court.
Mediate UK, provide fixed fee packages. These packages are designed to offer clear, upfront pricing for our services, ensuring that you know exactly what you will be paying from the outset. This transparency can help manage and budget for your divorce expenses, as there are no hidden costs or unexpected fees.
You are not committed to any package until you know you want to proceed. To start, you pay as you go for each appointment. Once an agreement is reached, we help you decide the best legal package for your needs, and you pay the balance.
Let’s look at an example:
CLEAN-BREAK FINANCIAL CONSENT ORDER PACKAGE – £1399 per person (inc VAT)
Less anything included in the package that you may have paid for up until this point for example:
- MIAM: £130pp
- UP TO FOUR HOURS OF JOINT MEDIATION: £520pp
- MEMORANDUM OF UNDERSTANDING & OPEN FINANCIAL STATEMENT: £150pp
The only additional charges are your HMCTS Court Fees (£30pp) and a compulsory ID verification to be carried out by the solicitor for compliance purposes (£12pp).
LEAVING YOU WITH A BALANCE OF JUST £640pp FOR A SOLICITOR MANAGED CONSENT ORDER.
Using these fixed fee packages can help you manage your divorce process efficiently and affordably. By avoiding the uncertainty of hourly billing and potential additional charges, you can plan your finances better and reduce the stress associated with the divorce process.
See a full list of our legal mediation packages HERE
Option 2 – The Government Voucher Scheme
The UK government offers a voucher scheme to help cover the cost of mediation for parenting matters. The government voucher scheme puts £500 towards your joint family mediation sessions (excluding your MIAM) and Mediate UK are signed up to administer the scheme on your behalf.
This offering gives you up to two hours of free family mediation on parenting matters, allowing you to explore this option with no financial risk. This can be particularly useful for resolving your child arrangements without incurring high legal fees.
GET IN TOUCH TO FIND OUT HOW MEDIATE UK CAN HELP WITH YOUR PARENTING OR FINANCIAL DISPUTE, OR WITH A DIVORCE OR SEPARATION.
CALL 0330 999 0959 OR CLICK HERE FOR A FREE 15-MINUTE CONSULTATION
Option 3 – Maintenance Pending Suit (MPS)
Maintenance Pending Suit (MPS) is a temporary financial support mechanism available during divorce proceedings. It is not available if you were not married. It provides one spouse with interim maintenance from the other until a final financial settlement is reached. This can help cover living expenses and legal costs in the short term.
To apply for MPS, you need to file an application with the court. It’s advisable to consult a solicitor to guide you through this process.
This would usually be done when one party has access to significantly more income or assets than the other.
Option 4 – Negotiation
In some divorce scenarios, there can be financial imbalances, where one party has more financial resources than the other. Through family mediation, couples can negotiate a fair arrangement to manage this imbalance and ensure that both parties are able to cover the costs of the divorce.
Case Example
Simon and Fiona are getting divorced. Simon has a higher income and more savings, while Fiona has limited financial resources. They agree to use mediation to reach a financial settlement.
During mediation, they agree that Simon will cover all immediate legal and mediation costs upfront. This includes fees for mediation sessions, solicitor costs to draft paperwork and any court fees.
As part of their financial settlement, Fiona and Simon agree that Fiona will cover half of these costs from her share of the financial settlement.
They agree that Fiona pays Simon these costs back, when they have sold the former marital home.
Outcome
By one party paying for all the costs upfront, it allows them to both move on with their lives quicker and reach an amicable financial settlement.
Option 5 – Interest-Free Credit Card
One possible option to help manage the costs of a divorce is to use an interest-free credit card. Many credit card companies offer introductory periods where no interest is charged on purchases, sometimes extending up to 18 months or more.
By using an interest-free credit card, you can cover immediate legal and mediation expenses without incurring additional interest charges, effectively spreading the cost over time. This can provide significant financial relief, allowing you to manage your cash flow better and avoid the burden of high interest rates.
However, it is important to ensure you can repay the balance within the interest-free period to maximise this benefit and avoid potential financial pitfalls once the introductory period ends.
Any such loan should be added to your monthly budget to ensure that it can be paid.
Option 6 – Legal Aid
Legal aid can be a valuable resource for those who qualify, providing financial assistance for family mediation fees. In some cases, such as domestic abuse you can also use legal aid for legal fees.
You will usually need to be assessed for this if you:
- Are in receipt of certain benefits – Income Support, Income-related JSA or Income-related ESA
- You have a low disposable income – where you have a disposable income of less than £733 per month after deducting tax and certain living expenses
- Where you have savings – If you have savings of less than £8,000 (excluding the value of property where this is to be discussed in mediation)
- You are in receipt of contribution-based benefits or are on a low income
Follow this link to check if you qualify for legal aid.
What other help is there?
As well as the full list of professionals who can assist with the various aspects of your divorce, several institutions and resources can help you manage and reduce the costs of your divorce. These organisations offer several forms of assistance, from legal advice to financial relief.
Court Fee Remission – The Help with Fees scheme can reduce or eliminate court fees for those with low income or certain benefits.
Child Law Advice – Provides low-cost legal advice and information on family law and education law to parents, carers, and young people.
Citizens Advice – Offers free, confidential advice on a wide range of issues, including legal matters related to divorce and separation.
LawWorks – Connects individuals with volunteer lawyers who provide free legal advice and representation.
Turn2us – A national charity that helps people in financial hardship gain access to welfare benefits, grants, and support services. The calculator to see what you may be entitled to, given your new circumstances can be particularly helpful for your financial planning.
Summary
Paying for a divorce can be managed through a variety of methods. As we have seen in this blog, there are several resources and strategies available to help manage costs effectively and mitigate the financial strain. It is important to explore your options and seek professional advice to find the best solution for your circumstances.
The bottom line is, the more you can agree between you, the less costly your divorce will be.
