A Divorce Mediation Case – Part 4 of 4: Agreements Reached & Reviewing the Costs

Bill and Angela have come a long way in handling their own divorce.  We have been with them through: The Decision to Try Divorce Mediation and the Consultation (Part 1); the Sessions on Parenting, Income & Expenses (Part 2); and then the sessions dealing with Assets (Especially the House) and Debts (Part 3) in which perhaps their biggest disagreement emerged, along with the strong emotions that came with it.  Here we will a) be with them briefly as the mediator helps the parties deal with remaining issues; and, b)    conclude by taking a look at the money the couple spent on mediation.

February 25th, 2016 – Session #5

  • After getting a value for the house, the spouses talked about other matters regarding the home. Now that the question of how much the house was worth had been answered, a serious disagreement remained about how much of that value belonged to Bill and to Angela; Angela was arguing for a 50/50 split, while Bill believed that he was entitled to a higher percentage due to work he had done on the house, and the increased value that resulted from that work.
  • Angela said that Bill was just making things difficult; that he knew she could buy him out at a 50% split, but couldn’t at any more than that. Bill denied this.

 

  • The mediator asked if they wanted to take a short break; neither one did. Then the mediator asked for more information that might enlighten the discussion. More information was shared, but no agreement on the house was reached.

 

 

  • The mediator brought up other matters, including:  filing taxes, whether/how to share in the case of a tax refund, or an audit; how to handle costs for writing the agreement, review attorneys and the court filing fee.  Angela and Bill reached agreements on these issues relatively easily.  though both were still upset, and Angela especially was concerned about dealing with the house.

 

  • The session ended, both still upset, and with Angela especially concerned about dealing with the house.

 

March 10th, 2016 – Session #6 (the last session)

  • On March 10th, Bill and Angela reached an agreement on the house, and tied up the remaining loose ends. Bill acknowledged the importance of the house not only to Angela, but to the children as well. And since Angela would probably be keeping the house for many years, during which time some expensive repairs were likely (on things that Bill didn’t have the skills to fix, though he was willing), he could come down on the percentage that he was asking for.  Angela expressed appreciation for the work Bill had done on their home, and for his willingness now to accept a lower percentage (than he had demanded earlier).
  • After further discussion, Angela proposed that either: a) Bill walk away with more of the assets than they had already agreed upon; or, b) that Bill take a small percentage of the house upon its eventual sale, which would likely be after their younger child graduated from high school. Angela agreed that she’d have to pay Bill that percentage from some other source of money that she would hopefully have at that time, or sell the house to pay him while incurring the expenses to sell the house.
  • The spouses reviewed their assets and talked further, ultimately deciding that Bill would take a greater share of the assets; an amount that Angela agreed she could live with.

And so, the mediation ended.

As previously mentioned, the “separation agreement” will need to be written. Bill and Angela have been advised by the mediator to each meet with a lawyer to review the separation agreement with them before signing it, which they have agreed to do.  Shortly after that, the separation agreement can be filed with the court.

So what did it all cost?

Mediation Fees:

  • $     50        Consultation
  • $3,300        11 hours @ $300/hr

$3,350        TOTAL

 

Other Expenses:

$1,500        Separation Agreement (needed whether people mediate or not)

  • The fees charged by an attorney to review the separation agreement should be relatively low, as this review is the only job that the lawyer will be doing for the client. There are no court motions, no depositions, no trial (and so no trial preparation), etc.
  • Court filing fee (needed whether people mediate or not)

In mediation (as in litigation), there can be other expenses, such as when spouses decide to hire an expert, such as a financial planner.  But, contrast a mediated divorce with a litigated one, and the difference in cost is often quite dramatic.

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A Divorce Mediation Case (Part 2 of 4: Sessions on Parenting, Income & Expenses)

In my previous post , I introduced Bill and Angela who had decided to get a divorce.  Angela called and learned more about mediation, and shared the information with Bill.  After further discussion, they decided (Bill, a little reluctantly) to schedule a consultation, at which they got a sense of who the mediator is, and had more of their questions answered.

Here, I continue with both their first and second sessions.

November 10 – Session #1

● With the spouses permission, the mediator turns the discussion to parenting.

● Angela says that she wants ‘full custody’. Bill becomes defensive. They argue for a few minutes.  The mediator listens and considers whether the verbal exchange is constructive, and then raises a question.

● The mediator asks each to answer, “What do you mean when you say ‘custody’?

● The mediator listens and checks that s/he understands what each has said. The mediator then suggests that maybe the question isn’t “Which of you will have custody?”, but rather, “What agreements can you reach so that you can be the kind of parents you want to be to your children?”

● There is further discussion, some of it angry.  The mediator helps the spouses to fully express their concerns, and asks clarifying questions.  The mediator believes that, though Bill is having difficulty really listening to Angela directly at this point, he is able to hear her through the mediator’s restatements of what she is saying.  The focus is forward looking.  Each party acknowledges that the other has an important role to play in the children’s lives; neither wants to ‘take the children’ from the other.  With his fear of ‘losing the children’ alleviated, Bill especially becomes less tense, and the conversation is less strained.

● Bill and Angela agree to talk about parenting arrangements; at least for now, they are willing to leave the legal designations aside.

● Angela and Bill talk about the children: where they attend school, what they enjoy doing, their usual routines, and so forth.

● The mediator helps them to set out different possible parenting plans, which are discussed.

● The parents reach a tentative agreement on a schedule for the children. And, on how decisions involving medical, educational and religious matters will be handled in the future.  (The latter comes easily for them.)

● The mediator gives each spouse a blank form for setting out financial information.  Angela and Bill are both confident that they can fill in the information about their respective incomes and expenses within a week to ten days.  With that in mind they schedule the next session for two weeks later; if either needs more time to complete the income/expense parts of the form, they will let each other and the mediator know, so that the date of the next session can be rescheduled.

● The session ends after two hours, and Bill and Angela each pay $300 of the $600 fee.

 

November 23 – Session #2

● Angela and Bill arrive.  The mediator asks how they and the children are, and whether anything of note has happened since the last session.  They briefly discuss Thanksgiving plans.

● Angela asks a question about property.  The mediator gives the spouses a brief overview of Marital and Separate Property (and Debts), and makes a point of saying that this information is not “legal advice”. For instance, if either/both wants to know what a judge might decide regarding property, they are welcome to contact an attorney to get that advice. Both respond that they don’t see a need; instead, they’ll each meet with a ‘review attorney’ to review the separation agreement before signing it.

● The mediator then begins setting out Bill’s and Angela’s respective income and expenses. This is done using a flip-chart, so that all three of them can see the figures that the spouses supply.

● Bill questions why Angela is paying $400 month for clothes for her and the children. Bill isn’t angry; he just thinks the number is high. In discussing the matter, it turns out that Angela based her calculation on her September credit card statement, which has higher costs than average due to purchasing back to school clothing. Their daughter needed a lot of new thing because of how much she has grown over the past few months. Angela says that before the next session, she will look at her statements over the past year, which she can find on the computer, and take the average of that twelve month period. Bill thinks this is a good idea. The mediator makes a note to come back to this question.

● Angela asks if, since money will be tight, Bill can cut down on his recreational spending. Bill bristles at the suggestion, but looking at where his money goes, decides this is reasonable. In particular, Bill says that he can spend a lot less on sporting events and movies. Bill does a quick calculation, agreeing to reduce this spending by 10% each month, starting this month. He is confident that he will bring it down further, but feels comfortable starting at 10%.  The mediator, noticing Angela’s facial expression, asks if she wants to say something.  She answers that, “Well, I have mixed feelings.  I think Bill could do more here.”  (Bill immediately becomes upset.)   “But,”  she adds, “Bill is willing to commit to this, and says he’ll do more; and I believe he will.  (Turning to Bill)  And maybe it’s a good idea that you start with 10%; that way, you won’t feel deprived.  If you spent less now, you might hate it, and be angry with me, and we’d be worse off.  So, good.  Do the 10% for awhile.  Then, we can talk about it again in month or two.  Can we do that?”  Bill is still annoyed, but he also knows (and feels) that he is being heard by his wife.  He says, ‘Yes’.  They discuss what to do with the money that will be saved. Bill wants to use it to pay down a credit card, and Angela agrees to this.

● In regard to expense and income figures now displayed on the flipchart, the spouses agree that the numbers are pretty accurate.

● Bill raises a concern he has about the parenting agreement. He says that he has what is a minor change in mind that would allow him to spend more time with the children during the summer, if Angela would be ok with it. Bill shares his thought. Angela says that the change would be alright with her, if another small change can be made when it comes to the Thanksgiving holiday break, starting the following year. Bill tells Angela that he is willing; while he likes the Thanksgiving break and doesn’t really want to change the schedule they had agreed to, the change over the summer is a much bigger deal to him, and he thanks Angela for going along with his suggestion.

Next time:  Assets (especially the House) and Debts

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All blog posts are for information purposes, and should not be considered as legal advice.

  

 

 

 

 

 

 

 

 

 

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