Tag Archives: NC divorce mediation

What Are The Advantages of a Mediated Divorce?

I am frequently asked about this and thought I would share my experiences with you.

Cost: Mediated divorces cost less.The average mediated divorce should cost less than $3,500 including the fees for separate lawyers. The average conventional divorce can easily cost about $20,000. Mediation almost always represents a significant economic saving.

Time: Mediated divorces are resolved faster. The average mediated divorce can be settled in two or three months. The average conventional divorce can take one to five years to resolve. Faster resolution means that the family can begin to heal that much sooner rather than stewing in limbo and unable to move on.

Quality of agreement: Mediation results in better agreements. One of the worst features of conventionally resolved divorce is the high rate of failure of settlements. It is estimated that half of all conventional settlements are the subject of litigation within two years of the divorce. This suggests that many people do not feel committed to the contracts they negotiate under the duress of litigation. Because couples who mediate reach real agreement rather than just grudging tradeoffs mediated divorces have a much higher rate of compliance and a much lower rate of “post-judgment” litigation– usually less than five per cent.

Quality of communication: Mediated divorce improves the chances that the couple will be able to cooperate around the children after the divorce is over. Mediation, unlike conventional divorce, not only encourages but requires the couple to learn new ways to communicate about child related issues. In mediation the couple learns to manage such issues with respectful and cordial behavior. It creates a business like partnership to solve problems and help the children adapt to divorce. In conventional divorce the lawyers do the talking andthe partners do not communicate directly. So when the divorce is over and the lawyers disappear the couple is left with a vacuum of communication. It is no surprise that so many end up back in court.


Sam Margulies Triad CareersBefore he was a divorce mediator, he was a divorce attorney.
 Sam Margulies, Ph.D., J.D., is one of the most experienced mediators in the United States. Since 1980, he has mediated hundreds of civil disputes and approximately four thousand divorces including many complex multi-million dollar matters.

Author of several books on divorce, Sam Margulies is an empathetic and knowledgeable guide through the difficult journey of divorce.  Contact Sam with your questions and to talk about your divorce.

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The Do-It-Yourself Divorce

I have long been convinced that with a few scalpels and clamps I could remove my own appendix in a pinch. But that conviction does not mean that it would be a good idea to attempt nor does it mean I would survive the operation. And so it goes with many of life’s tasks that don’t seem so difficult that we couldn’t do it ourselves.  I am frequently asked this about divorce.

“We don’t have much money and we don’t have kids and we’re in agreement on everything. Why not just download the forms from the web. Do it ourselves and save the bundle that the lawyers will charge us?”

With that frequently asked question in mind I thought I would outline under what conditions couples should or should not try it themselves.

The simplest divorce is one in which there has been a short marriage with no significant property accumulated during the marriage, no children and two employed and self sufficient spouses. No children means no parenting or child support issues. Two economically self-sufficient spouses means no alimony issue. And little or no property means no need to detail how the property is to be divided. Under these conditions there is really no need for a written settlement agreement. The couple separates and after the statutory required waiting period files for divorce using forms and directions easily available on the Internet. In some states you don’t even need to go to court; you just do it by mail. In other states a court appearance is required but the court personnel will usually talk you through the pro forma hearing.  Feel free to contact me personally for specifics on North Carolina divorce law.

Recognize that there are two parts of a divorce. The first part requires that you agree on the issues of children and custody, financial support and division of property. The settlement agreement is an enforceable contract that permanently resolves all the child related and economic issues. If you need a settlement agreement and you are not very experienced in drafting contracts you probably need a little help from a lawyer, mediator or at least a knowledgeable paralegal. Once you have a drafted settlement agreement it is relatively easy to do your own paper work and get yourselves divorced. But even in a seeming simple divorce there may be issues that if not written down may result in anger and economic loss.

Consider Pam and Tom who have been married two years and have no children. Tom is self-employed as a contractor and Pam is an assistant professor at a local college. At first glance the couple felt they had nothing to negotiate. They had always kept separate bank accounts and just assumed that each would keep everything in his or her name. This is fine, but they have to recognize that they may each have rights and needs that are provided by law.

For example, during the marriage Pam has increased her retirement account by $10,000. Tom is entitled to a share of it. More complicated yet, during the marriage Tom’s business has doubled, he has earned a lot of money and used it to buy a lot of equipment. According to law, Pam is entitled to a share of the increase in value of the business including both hard assets like the bulldozer and the accounts receivable but also the goodwill value that has increased during the marriage. Finally, Tom, who has high blood pressure, needs to stay on Pam’s health insurance plan for the eighteen months their state requires before it will grant a divorce.

If Tom and Pam just assume that each keeps his/her own assets all will be well unless one of them has second thoughts later. After the divorce when Pam finds out that Tom has been dating her best friend she may decide that she acted too hastily in not pursuing Tom’s business assets. In many states she would have no trouble reopening the case because there was never a legal finding with respect to these assets. And when, out of anger, she cancels Tom’s medical insurance without telling him and he has an emergency appendectomy two weeks after the coverage disappears, there is going to be trouble and both may wish they had attended to these issues in a proper document.

What Pam and Tom should have done was to obtain a few hours of professional help to understand their choices. Property distribution law is very complicated. You may have all sorts of claims on each other’s property. But even if you both are clear and adamant that each should keep his /her own assets you need a simple contact in which your waiver of these claims is clearly stated in writing and signed before a notary public. It will also help if the contract states that you are each aware of your claims to the other’s property and that you are knowingly waiving your claims. While you are at it a mutual waiver of alimony will preempt a subsequent claim if one of you gets laid off or a business collapses.

A written separation agreement is necessary if there are any economic issues or any potential economic issues. And if your situation is more complex than Pam and Tom then you certainly need a separation agreement and it is very unlikely that you know enough about divorce to do it yourselves.

This does not mean that you are doomed to the greedy clutches of adversary lawyers eager to make a fight. There are plenty of mediators around who can help you through at minimal cost and there are some decent lawyers who minimize conflict and help you make practical choices. You can obtain the actual divorce yourself but you take a terrible risk when you do it without a professionally assisted separation agreement.

Call me anytime you have any questions about North Carolina divorce law, custody issues, or separation and settlement agreements.  You are under no obligation and it would be my pleasure to answer your questions.

 

Sam Margulies
(336) 669-3141

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Divorce Doesn’t Have to Mean Going Broke

How mediation saves a great deal of money

A mediated divorce saves clients many thousands of dollars. In a typical adversarial divorce using lawyers you can expect to pay each lawyer an initial retainer of from $1500 to upwards of $10,000 just to begin the case. Even though almost all divorces are settled by negotiation before trial, most attorneys approach every case as if it was going to have to be tried. If it settles before trial, fine. If not they keep preparing for trial, a process that can cost tens of thousands of dollars. So you pay to prepare for a trial that is not going to happen in close to 99% of divorces.

Today, the average conventional divorce, using an attorney for each spouse, costs roughly twenty thousand dollars.

When you choose mediation there is no retainer to pay. I charge $250 per hour paid as you go. The average mediation is resolved in less than eight hours of work. Most cases cost less than $2000 to complete the mediation. And if you consult with an advisory lawyer, you pay for each consultation instead of paying a retainer. Then, you pay the lawyer to prepare the final separation document and put the divorce through the court. The fees for both parties for this phase are generally less than $1500. So in the typical divorce the total professional fees for the entire process are generally about $3000, less than most couples pay for the initial retainer fees. That is why mediated divorce usually saves couples from $17,000 and up.

There is an important second reason that mediation can save you a lot of money. We know that about half of lawyer mediated settlements break down within two years requiring a return to court to fight about children and money. Each time this happens can cost thousands of dollars for each party. And this does not include the emotional toll this post divorce conflict take on you and your children. The reason so many of these lawyer negotiated settlements break down is that they are not real agreements between the couple but rather grudging concessions worked out by the lawyers. The result is that the level of true commitment to the agreement by the parties is low. And a low level of commitment results in a high level of willingness to breach the contract.

Mediation requires the parties to negotiate directly with each other until agreement is reached. A good mediator keeps you working until you are both satisfied that the agreement is fair. The result is a much higher level of commitment to the terms of your settlement and a greater willingness to abide by the terms. We know that less than five percent of couples who mediate their settlements return to court within two years. Compare this to the fifty percent of couples whose divorces are negotiated.

Call me anytime you have any questions about North Carolina divorce law, custody issues, or separation and settlement agreements.  You are under no obligation and it would be my pleasure to answer your questions.

Sam Margulies
(336) 669-3141

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You can achieve a “good” divorce

Because divorce is generally regarded as regrettable and socially undesirable, we tend to think of all divorce as bad and destructive. Certainly, most of us have known people who have had bad divorces. These are the ones in which couples do so much damage during the divorce that they are left unable to cooperate, still angry at each other and unable to adapt to post-divorce life because they are still destructively engaged with each other. For these unfortunate people the divorce has been a failure because neither is free of the other and they continue to interfere with each other’s contentment.

So is there such a thing as “good” divorce? As in any human endeavor there is a range of performance and a range of possible outcomes. Just as there is bad divorce characterized by mutual self defeat, there is also successful divorce in which a couple has successfully negotiated a post-divorce arrangement that leaves both partners as well a s their children able to adapt to their new lives. The key to understanding good or successful divorce is an understanding that almost all divorces (99%) are resolved prior to trial by a negotiated settlement agreement. The negotiation of the agreement, also called the settlement agreement or the divorce agreement, can be regarded as the final task of the marriage. A settlement agreement resolves all economic issues between the parties and describes their mutual rights and responsibilities as parents. It describes how their property is to be divided .and resolves issues of child support and spousal support. Done well, the settlement agreement becomes the economic blueprint for the family’s future. Done well, the document represents the genuine agreement of the partners so that both view it with a sense of justice and goodwill.

There are seven characteristics of a good divorce.

  1. Emotional closure for both partners. This means that there is no unfinished emotional business and they have both disengaged from the relationship and the conflict.
  2. A successful post-divorce social life. Each has achieved a place in the community, or has developed a network of friends. If they are interested in a new relationship, each has begun to date or has found a new mate.
  3. A sense of economic justice. Both have a sense that the settlement was fair. This does not mean that one or both does not feel strapped from time to time, but that the disparity between them is not glaring or dramatic and neither feels victimized by the other, or by the divorce process.
  4. Basic trust. This means that neither has demonized the other and gives the other the benefit of the doubt when disputes arise.
  5. Communication skills. They can communicate effectively, and their style is conducive to cooperative parenting.
  6. Mutual goodwill. Each can wish the other well and support the children in accepting, if not liking, the other’s new mate or lifestyle.
  7. Conflict resolution skills and a mediation clause. Both came out of the divorce process with a reasonable capacity to settle differences themselves, or with the occasional assistance of a mediator.

Although some may think that this notion of a good divorce is unrealistic or naïve, I think it is within reach of the majority of divorcing couples. Bitterness is not a necessary part of the process of divorce. Sadness, anger, fear of loss and loneliness are, perhaps, inevitable. But the bitterness that poisons post divorce communication is more often the product not of the decision to divorce, but of the adversarial process still used by most people to get divorced. When divorcing couples feel humiliated and terrorized by each other’s lawyers they invariably hold each other responsible for the things each other’s lawyers have said and done. That anger so poisons the relationship between the parties, that it precludes cordial communication and mutual trust.

Good divorce is more likely for those couples that keep their contact with divorce lawyers and the court system to a minimum. Couples who insist on maintaining control rather that surrendering control to an adversary system are those who have the best prognosis for successful divorce. They are the ones who manage their strong feelings and don’t allow their own acting out to sabotage their futures. They approach the tasks of the divorce with a firm resolve to treat each other respectfully and to solve problems as efficiently as possible. Some couples can do this themselves. Others will need the help of a mediator. But most couples, when informed about the alternatives, can negotiate fair and lasting settlements.

Call me anytime you have any questions about North Carolina divorce law, custody issues, or separation and settlement agreements.  You are under no obligation and it would be my pleasure to answer your questions.

 

Sam Margulies
(336) 669-3141

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