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Since lawyer fees are usually the biggest expense of a divorce, if you can do without the services of a lawyer, or if you can settle your divorce through mediation, you most definitely want to. But only go down this road if you're absolutely sure you can get what you need without the benefit of a lawyer's help.
Is your divorce a simple one, with both spouses fairly amicable and willing to reach agreement, or will you need litigation? If you and your spouse are able to agree, chances are good you'll be able to handle your divorce yourselves. But even in this scenario, a lawyer should probably play a role.
It is best to reduce your agreement to writing, then take it to a lawyer and have the lawyer prepare a formal Separation Agreement that reflects what you and your spouse have agreed to. The Separation Agreement will cover a lot of issues that you and your spouse, not being legally trained, have simply overlooked or not thought about. It should help, as well, to clarify points which you and your spouse have not been clear about. Once the Separation Agreement has been prepared and you understand it, give it to your spouse and have them take it to a different lawyer to be reviewed. This is crucial because things can go bump in the night down the road and you both want to make sure that you had competent, independent advice at the time you signed your Separation Agreement.
Splitting assets alone can be complicated. Consider mediation or collaborative divorce, which helps the two of you work together with trained professionals to solve the problems of property division and custody arrangements. If you can't agree, litigation may become necessary. You definitely need a lawyer for any kind of litigation.
Even if you and your spouse are divorcing on very cordial terms, it can be hard to decide what's fair for both of you. A lawyer can be an advocate to help you make tough decisions.
Reducing legal fees
The biggest step in reducing legal fees is to do as much of the work as you can. Gather as much financial information as you can before you meet with a lawyer. Their hourly rate may be very expensive. You're paying that fee for legal expertise; you don't want to pay a lawyer to search through your finances. If you can, negotiate a fixed fee for your lawyer. Otherwise, you can reduce fees by remaining actively involved in your case and following your lawyer's instructions carefully.
Try to settle small issues with your spouse without the help of a lawyer. Lots of tiny spats can lead to one gigantic legal bill. Save your money for the bigger battles that may take some greater legal muscle.
Stick to the tasks at hand with your lawyer. As you work with a lawyer, you'll probably build trust with that person and it might be tempting to "unload" some of your feelings on them. You really need to find a friend you can confide in -- someone who isn't charging you by the hour.
Don't try to use a divorce settlement to punish an ex. It will end up causing more stress and pain, and costing much more money in legal fees. If you insist on "sticking it to your spouse," your lawyers may make you pay for the priviledge.
Find a way to communicate with your spouse. There is a lot of emotional stress involved in a divorce. There's most likely some anger involved as well. But if you each rely on your lawyers to handle exchanges, the fees will add up quickly. If you need to, use alternative ways to communicate such as e-mail or faxing. It takes some of the confrontational potential out of communicating by phone or in person.
Before a lawyer represents you, you may be asked to sign a written fee agreement. This is a legal document explaining the fees that your lawyer will charge. Make sure you understand this document and feel free to ask questions if you don't.
Information you will need
Gather your paperwork into one container, preferably mobile, that will help you be prepared and organized for your first encounters with your lawyer. If you have your finances in order, you won't have to pay a lawyer to discover this information. Included should be:
Tax returns for the past five years
Retirement-account records for both spouses
You and your spouse's paycheque stubs to show current income and withholdings
You and your spouse's employee-benefit statements
Copies of all insurance policies, including life, health, homeowner's and auto
Current statements for all bank and brokerage accounts
Mutual fund statements
Copy of the deed or lease agreement on your home
Statements on all outstanding loans, including your mortgage and credit cards
Employer stock-option plans
Copies of wills and trusts
Copies of powers of attorney
Receipts for major purchases
A copy of your estate plan
Copies of birth certificates and marriage licenses
Depending on what is being contested, you may also want to keep records for the following:
A prioritized list of assets you want to keep
Your children's records, including how much time you spend with them, the activities you do together and the expenses associated with their upbringing.
