So here you are. You’ve decided to get a divorce, but now you’ve got questions—a lot of them. Like, “Where do I even start?” and, “Should I hire an attorney?” and, perhaps the most worrisome of all, “How much does divorce cost, anyway?”
Unfortunately, while a lot of these queries have straight forward responses, the answer as to how much your divorce will cost is a little less than satisfactory. In a nutshell?
We don’t know.
The varying details between divorces make it virtually impossible to predict someone’s eventual bottom line. On the bright side, our team has seen enough breakups to know which divorce types are most likely to break the bank, and how you can be financially savvy.
Here’s what you need to know about how much divorce costs in California, and what Maples Family Law can do to work within whatever budget you have.
Breaking Down the Cost of Divorce
You can’t keep down the cost of your divorce without first knowing what the costs are. This is especially important, considering how widely the arc of our divorce cost pendulum can swing.
For example, in California, you can technically get a bare bones divorce for nothing more than a filing fee of $435 (assuming no one fights back, and there’s nothing to argue about, that is). Realistically, however, it’ll probably be a lot more, with some divorces easily racking up more than $50,000 for the same breakup.
The first step to curbing these numbers is knowing where the costs are coming from.
In general, there are four main areas that will keep you up sweating dollar signs at night:
Your attorney’s initial retainer.
Your attorney’s billable rate.
Paperwork filing fees.
Expert witness rates.
Here’s a quick peek at how each of these break down.
1. Attorney Retainer
A retainer is a large payment that you submit to your attorney, at the onset of your case. This money both reserves your attorney’s services, and acts as a kind of savings account, from which your attorney will draw from to pay expenses, as your case proceeds.
In California, an initial divorce retainer can range anywhere from $3,000-5,000. Your attorney will use this money to pay for things like:
Their own billable hours;
The billable hours of any staff who work on your case;
Filing fees for documents submitted to the court;
Compensation for any outside experts you call upon; and in some cases,
Office expenses relating to your case.
Different firms all have their own system of billing, which is why you should always take the time to thoroughly review your retainer contract, before signing anything. That way there won’t be any surprises.
2. Attorney Hourly Rate
In California, most divorce attorneys charge an hourly billable rate. This amount typically ranges between $250-$400 an hour, and will vary based on where you live, and who you hire.
“But wait!” you might be thinking. “Didn’t I already pay for my attorney? Wasn’t that what the retainer was for?”
Sorry, but no.
Remember, a retainer is just a reservation fee—an initial deposit, so to speak. While this money will go towards paying for your divorce, the biggest mistake you can make is in assuming that it will cover your whole divorce.
In reality, you’ll almost certainly have to replenish this account several more times, before your case is over. (Especially when you consider that the average price tag on a California divorce is a cool $17,500.)
3. Filing Fees
California might have some of the highest filing fees in the nation, but $435 to submit an initial divorce complaint suddenly doesn’t seem like very much, when you consider how much you’re going to spend, overall.
If you and your spouse file for an uncontested divorce, then this initial filing fee might be the only payment you’ll make. However, since this type of divorce doesn’t work for most couples, it’s much more likely you’ll have other filing fees crop up, as your divorce progresses.
The good news is if you’ve retained representation, then your attorney will take care of this cost for you (using funds from your retainer account). If not, you’ll be responsible for this cost—as well as the other logistics of filing for divorce—on your own.
4. Expert Witnesses
Depending on your situation, you may need to hire an expert witness.
The cost of these professionals will swing dramatically, depending on what you need them for, and how much time they put into your case. Most work on an hourly rate, and—similar to attorneys—will require an initial retainer.
The most commonly used expert witnesses in divorce are forensic accountants. These professionals can be used to:
These retainer fees typically start between $3,000-5,000, but can potentially be more, depending on the breadth and scope of the project.
Tips for Keeping Divorce Costs Low
By now, you’ve probably realized that the easiest way to cut down the cost of divorce, is to just skip the attorney altogether. After all, we lawyers easily have the highest price tag, so… it only makes sense, right?
Wrong.
Before you let these numbers scare you into a hasty, D.I.Y. divorce, remember that divorce laws are incredibly complex, and self-representation comes with a high likelihood of error. These mistakes can be incredibly costly—sometimes impossible—to reverse. Meaning that it’s almost always better to simply hire the attorney, and get it right your first time around.
If finances are a concern, there are much less riskier ways to cut costs during divorce. Here are just a few:
Educate yourself about California divorce laws (the library is a great resource).
Do your own legwork (such as gathering documents and making copies for your attorney).
Email your attorney, don’t call—calls take up more time, and time equals more billable minutes.
Utilize legal assistants and paralegals as much as possible; they have a significantly lower billable rate and are almost always just as smart as your attorney.
Hands down, the single biggest thing you can do to avoid high divorce costs, is to avoid court, altogether. Instead, opt for an alternative method of dispute resolution, such as mediation, or collaborative divorce.
Not only will these types of divorce save you a lot of time and money, but they’re also more flexible. This gives you the ability to set your own terms, rather than having them decided for you by the whims of an outside judge.
Do You Have More Questions About the Cost of Divorce in California?
While divorce might not come cheap, it also doesn’t have to be as bad as you might be thinking. With a little bit of planning, the right divorce type, and a willingness to compromise, it’s more than possible for couples to keep costs reasonable.
If you have more questions about how much divorce costs in California, and what this process might look like for your situation, we want to hear from you. Call the Maples Family Law team at (209) 989-4425, or get in touch online, and let us help you get divorced within whatever budget you have.
With so many different types of plans and variables at play, dividing retirement assets in a divorce can be complicated. Especially if they existed both before and during a marriage, dashing any hopes of a clear property classification. However, considering their sizable worth, retirement accounts are one aspect of property division you don’t want to get wrong.
Fortunately, a good Stockton divorce attorney can help you get the job done without too much hassle.
Identifying Retirement Assets in a Divorce: Community or Separate Property?
When splitting a retirement plan, the first step is to identify what kind of property the account is. Like all other assets acquired by a couple during marriage, retirement funds are subject to property classification and division under California’s community property laws. Under these rules, assets are categorized as either “community” (property that belongs to both spouses equally), or “separate” (property that belong to one spouse, individually).
To classify the contents of a retirement account, timing is key. If either spouse contributed to the account while married, it is most likely community property (unless specifically addressed in a valid prenuptial agreement.) On the other hand, if the account was created before marriage—and was not added to during that time—it’s most likely separate property, and belongs solely to the participant spouse (the party who earned the benefit).
Most of the time, however, property isn’t as clear cut as “before” and “after” marriage. And when the ‘what’s mine is yours’ mentality results in blending separate and community property together, retirement division can get a little more complicated.
Dividing Retirement Assets in a Divorce
If the retirement account is classified as community property, a judge will split ownership based on the length of time the couple was married, and how this occurs will vary by circumstance. In some cases, both spouses agree to keep their own pensions and retirement accounts without taking any part of the other spouse’s. However, when one spouse doesn’t have a retirement account – or when one has a much smaller retirement asset than the other does – a judge will order the couple to split these funds another way. There are two common ways this can be accomplished.
The first, is to suspend all retirement payouts until the participating spouse actually retires. Once retirement finally rolls around, each spouse will get their share of the retirement payout for the time married. The second method, is to allow the participating spouse to keep all benefits of the retirement plan, and to offset this inequality by awarding the non-participating spouse a greater portion of community assets.
Obviously, each method of distribution comes with its own pros, cons, and risks. When assessing how to make this split, couples are always free to reach their own agreement, rather than fighting in court. One way to do this, is through mediation.
Divorce Mediation
Mediation is a non-binding negotiation process, where couples meet with a neutral third party, and try to come to an agreement on their own. This method of dispute resolution is far simpler and more cost-effective than litigation. It also gives individuals greater flexibility in determining the outcome of their own divorce terms, including the division of any retirement plans. For these reasons, a good attorney will always suggest that you try mediation before going to court.
Retirement Payout After Divorce
Once an agreement has been reached—either through mediation, or by litigation—the actual payout process will depend on what type of retirement plan you have.
For example, when dealing with a military retirement account, the length of your marriage will determine whether the participant pays out the alternate payee, or if the money will come directly from the Defense Finance and Accounting Service.
In other cases, individuals must file a qualified domestic relations order, or QDRO. A QDRO is a special court order authorizing a non-participant individual to receive a payout from a retirement account. Once a QDRO is filed, payout usually takes between 60 and 90 days, depending on how long it takes the plan’s administrator to process the documents.
These types of details—such as how payout works and how long it takes to receive—will vary for each type of retirement account. Once your Stockton divorce attorney has all the facts of your case, they will be able to give you more specific guidance on what to expect from your retirement payout process.
Retirement Plans Covered by a Prenup
Now days, it’s common for divorcing couples in California to have prenuptial agreements. These pre-marital contracts can cover all kinds of things about property division during divorce. In your prenup, you and your spouse may have agreed to several things, including the rights and obligations you each have when it comes to property (even if it was acquired during your marriage).
If a retirement account was included in your prenuptial agreement, it’s a good idea to talk to your attorney about it. The prenup can’t be grossly unfair, and if it is, your Stockton divorce attorney can help argue that all or part of the agreement is invalid.
Divorce Attorneys in California
If you have questions about dividing retirement assets in a divorce, we’re here to help. Call us at 209-546-6870 to schedule a consultation with an experienced divorce and pension attorney. Together, we’ll answer your questions, and begin building a strategy that will get you the best possible outcome in your retirement plan division.
If you’re like many people, you know California is a community property state – but what does that mean when you’re getting a divorce? Here’s what you need to know.
Community Property FAQ: Answers to Common Community Property Questions
Here you’ll find answers to our most common questions about community property questions, which might help you with your case. If you have more questions, or if you don’t see the answer you need here, feel free to call us at 209-395-1605.
What is an Example of Community Property?
Any property that you and your soon-to-be ex-spouse acquired during your marriage is considered community property in California. Some of the most common examples of community property include:
What is the Difference Between Community Property and Joint Tenancy?
Joint tenancy is a type of co-ownership that allows a property owner to keep property in the event that the other property owner dies. Joint tenancy is different from community property – but most married couples hold property as joint tenants with the right of survivorship. The biggest thing to be concerned about? Tax consequences. There might be capital gains issues that you need to know about, so talk to a tax consultant if this applies to your situation.
It’s not uncommon for separate property to become partly community property (such as when one person has a house before the marriage but continues paying on it during the marriage). This is called transmutation. If it went the other way, it would also be called transmutation. The only way community property could become separate property is if there was a mistake in classifying the property to begin with. Separate property includes only the property one spouse obtained before a marriage, after separating, and property received as a gift or inheritance during the marriage.
When you acquire assets or debts during your marriage, they’re community property. That means you and your soon-to-be ex-spouse own them equally. Even if only one spouse signed up for the debt, it belongs to both of you. You’re both legally responsible for the debt, but you can negotiate with your spouse over debts during the divorce. If you have marital debt, talk to your Stockton divorce attorney about what to do next.
If you brought a vehicle into your marriage and it was paid for before the wedding, it’s your car – your husband can’t take it. However, if you bought the vehicle (or even continued paying on it) during your marriage, your husband has the same right to the car that you do. Likewise, if he gave you the car as a gift, it’s separate property. You may be able to negotiate with your husband, or you might be able to get the court to issue an order that says you’re entitled to continue using the car during (and possibly after) the divorce. You should talk to your attorney if you’re concerned that your husband will take your car when it’s in your name.
In California, which is a community property state, both parties to a divorce are entitled to a fair and equitable distribution of their marital assets. One spouse might also be entitled to spousal maintenance (commonly called alimony), depending on that spouse’s ability to provide for him- or herself. All marital assets – and marital debts – are divisible in divorce. However, if you came into the marriage with property you owned, that remains separate and your wife is not entitled to it in the divorce.
Wages are considered community property in a divorce in California, provided that you earned them during your marriage. However, the wages you earned the week – or even the day – before you physically got married are separate property and your spouse isn’t entitled to a fair and equitable distribution of them. It’s worth noting, too, that community income isn’t only about money. It can include real estate, payments you receive for services, or payments you receive in rents, as well as other forms of income.
In real estate, community property is typically a home or piece of property that a couple purchased during a marriage. This real estate is divisible in a divorce. Sometimes a house or piece of property is separate (meaning that it belongs to just one spouse), such as when that spouse bought and paid for it prior to the marriage. However, everything the couple purchased or acquired during the marriage is community property – including real estate.
Is Cash Considered Community Property?
Cash holdings, such as paper money, savings accounts, checking accounts and investment accounts, are considered community property if the money was acquired during the marriage. For example, if you opened a checking account (even if it was just in your name) during your marriage and put in money that you acquired during the marriage, that money is community property. As community property, it’s divisible during divorce.
How Are Assets Divided in a Community Property State?
In a community property state, assets are divided fairly and equitably. That doesn’t necessarily mean 50-50, though. When it comes to how assets are divided in a community property state like California, each spouse is entitled to a fair share of everything. That means you’re free to negotiate if you’d like. You might trade two antique vehicles for an empty piece of property in the country, for example, or you might agree that your spouse will pay off your joint marital debt while you get to keep the paid-off house. As long as your agreement is fair to both of you, the judge assigned to your case is likely to sign off on it.
Is an Inheritance Considered Community Property in a Divorce?
In California, an inheritance is not considered community property in a divorce unless it was left to you and your spouse. If it was left to only one of you, it belongs solely to that person – it’s separate property.
Do You Need to Talk to a Lawyer About Community Property?
If you still have questions about community property in California, or if you need to talk to an attorney about dividing your property in a divorce, we’re here to help. Call us at 209-395-1605 to let us know what’s going on – we’ll be happy to schedule a consultation where you can talk to an attorney and get the answers you need.
California is a no-fault divorce state, which means that neither spouse has to prove that there was any misconduct on the part of the other.The only requirement for a no-fault divorce is that the couple state that they cannot get along. This is referred to in the courts as “irreconcilable differences.”
However, just because the divorce is based on irreconcilable differences doesn’t necessarily mean that the divorcing couple disagrees on how to divide the assets. When a couple can agree on how to divide all of their assets, the divorce is considered an “uncontested” divorce. When they disagree on any part of the division of assets, then the divorce is considered a “contested” divorce. However, the level and type of disagreement in a contested divorce can range from minor disagreements in a few areas to disagreement in every area. Each type of divorce presents different considerations and even couples who fully agree on most things might not be suited for an uncontested divorce. Likewise, couples who disagree on everything may still be candidates for an uncontested divorce.
Uncontested Divorce
In an uncontested divorce, the couple usually agrees on how to divide their marital property and provide for their children. An amicable and uncontested divorce is generally the simplest, easiest, and most cost effective form of divorce available. However, it’s important to keep in mind that divorce proceedings can be complex legal issues in even the most uncomplicated of marriages. An uncontested divorce settlement involves a lot of intricate components including the income of the couple, the source of that income, whether children are involved, the length of the marriage, and whether there is any animosity between the couple.Even if you and your spouse can agree on everything, an uncontested divorce may still not be in your best interest.
Who is a Good Candidate for an Uncontested Divorce?
Couples with little to no assets and no children;
Couples who agree on how to divide their assets, who will have physical custody of the children, who will have legal custody of the children, and how much, if any, child and/or spousal support should be provided.
Who is Not a Good Candidate for an Uncontested Divorce?
Marriages with physical or emotional abuse;
Marriages where child abuse is/was present;
When one spouse is, or is suspected of, hiding income and/or assets;
When one or both spouses are engaged in attempting to alienate the affections of the children;
In marriages with these types of issues, there is a very real possibility that the offending spouse may try to manipulate the other into an agreement that is more beneficial to them and it is not uncommon for the victim spouse to agree to an arrangement just to get out of the situation. While getting out of a bad situation is important, it is also important that you are legally protected when you do so. In these types of cases, it is extremely important that you have a neutral party available to give you sound legal advice and ensure that your interests are fully protected.
How Long Does an Uncontested Divorce Take in California?
How long does it take to get a divorce in California if both parties agree? Typically, it takes about 6 months. There’s a 6-month waiting period for anyone, whether the divorce is uncontested or contested, so you can’t get divorced any sooner than that.
Can I Get a Divorce in One Day?
You can’t get a divorce in one day in California. Once you’ve been through the mandatory 6-month waiting period, it’s possible that a judge could grant your divorce the next day – but even that could only happen if you and your spouse have an uncontested divorce and you agree on everything.
There is one small catch: If you and your spouse haven’t settled all the issues in your divorce but want to be divorced as quickly as possible, you can ask the court for a bifurcated divorce. That means the judge grants your divorce but lets you continue to work on some of the issues after the fact. This is the only way to expedite divorce in California.
How Do I File an Uncontested Divorce in California?
For most people, even if a divorce is uncontested, it’s a good idea to work with an attorney. The paperwork can be complicated, and if you end up having to go to court, you may want an experienced lawyer in your corner. However, if you choose to file an uncontested divorce in California on your own, you’ll have to:
Fill out the appropriate court forms
Make at least two copies of everything
Have your forms reviewed, if you’d like, by an attorney
File your forms with the right court clerk
Serve your papers on your soon-to-be ex-spouse
File a Proof of Service
Because the steps can also be confusing – and because you may want to ensure that your spouse isn’t trying to take advantage of you – you may want to consult with a lawyer about your options before you file.
Do I Need a Lawyer for an Uncontested Divorce?
Not necessarily. However, a divorce, under even the best of circumstances, can be difficult and complicated. Spouses who agree on most things may find a few issues that are sticking points or may find that as the process continues, the lines of communication begin to shut down.In addition, there may be areas in your divorce that need to be addressed that neither you nor your spouse had considered. Hiring an attorney can help you resolve issues that you are having a difficult time agreeing on and also bring your attention to areas about the division of assets and child and spousal support that you may not be aware of.
What if I Can’t Afford to Hire an Attorney?
If you can’t afford to hire an attorney, you can proceed pro se. A pro se divorce is a divorce that is initiated without the aid and advice of an attorney. This method is best suited for couples who have reached an agreement regarding all of the terms of their divorce. However, proceeding pro se is not recommended for couples who can’t come to an agreement as to how to divide their assets.
Additionally, proceeding pro se is not recommended for people who have experienced domestic violence or psychological harassment during their marriage. There is the very real possibility that the unequal dynamics of the marriage will reemerge in the divorce process, which could put one partner at a disadvantage in the divorce settlement. If you have suffered abuse during your relationship, it is in your best interest to seek legal advice from a qualified individual.
If you are short on funds, but need legal counsel, many attorneys offer limited scope representation. Limited scope representation allows you to hire an attorney to help you with just the areas where you need assistance rather than the entire divorce proceeding.
Can You File for Divorce Online in California?
You or your attorney must file physical paperwork in court. There’s no way to file online (although your attorney can send you paperwork through email).
Contested Divorce
A heavily contested divorce is the most difficult type of divorce. The relations between spouses can and do get volatile and disagreements can be compounded, extending the length of time the divorce proceeding lasts. Areas of disagreement can range from full disagreement on everything to minimal disagreement on some things. The more the couple disagrees, the more difficult it can be to come to an agreement about how to distribute the marital property and child rearing duties. In these types of divorces, it is imperative that you have a knowledgeable attorney available to ensure that your divorce settlement is fair and accurately represents your wishes.
Areas to Consider Before Deciding Which Type of Divorce is Right for You
Some of the major issues you and your spouse need to consider prior to initiating the divorce proceedings are:
California law favors joint physical and legal custody of children. (Physical custody concerns where the child will live while legal custody concerns who will make basic legal decisions for the child regarding the child’s healthcare, schooling, and other day to day activities.) How you and your spouse decide to divide your children’s time and expenses is generally up to you, the division does not have to be 50/50. However, the arrangement should be made in such a way that it preserves the child’s relationship both of his or her parents.
Some things to keep in mind when determining custody arrangements include:
The best method and arrangement to maintain the child’s relationship with each parent;
Each parent’s work schedule;
How to divide holiday schedules, birthdays and school vacations;
The physical and mental needs of the child;
Child Support
California courts determine how much child support needs to be paid according to specific guidelines. As a general rule, California bases child support payments on:
Amount of time spent with the child
The amount of money the parents earn
The number of children,
The tax filing status of each parent,
Health insurance expenses,
Daycare and uninsured health-care costs.
Any special needs of the children.
The guidelines present the minimum amount of basic care that parents must pay. However, parents may choose to pay an amount higher than that suggested by the court.
California is a community property state. In a community property state, all assets that a couple earns during the marriage, that are not considered separate property, are to be divided equally.
Assets you should consider are:
Any real estate you and your spouse own together;
Any real estate that was purchased in one spouse’s name using money from the marriage (this includes using any money earned through work that was done during the marriage);
Any income from an employer, including any benefits the employer offers (401(k)s, pensions, other perks that are part of an incentive package);
Income from self-employment;
Any stocks, bonds or other investments;
Any personal property, such as cars, jewelry, art objects;
Any retirement accounts or investment accounts;
Money earned from gambling, the lottery or other similar activities.
What exactly constitutes marital property and what constitutes separate property can be extremely difficult to determine. In many cases, property that was held by one spouse only may still be community property depending on how and when it was purchased. This is true even for property you are unaware of. If you and your spouse have a lot of assets, then it is in your best interest to seek legal advice prior to entering into any divorce agreements.
Just like assets, all debts incurred during the marriage are considered community property. This means that both parties are responsible for repaying the debt. This includes mortgages, credit cards, student loans, car loans, etc. Even debt that your spouse incurred without your knowledge may be considered community property and you may be equally liable.
