How Much Does a Divorce Cost?

According to Carl Graham, a divorce attorney at Graham Law, a typical uncontested divorce will cost between $4,000 and $8,000. A contested divorce could run you as low as $10,000 if the financial issues are fairly simple, or more than $50,000 if there is a custody battle and experts are needed.  Graham’s estimates are in line with a survey by the legal site Nolo that found the median cost of attorney’s fees for a divorce with a lawyer in 2019 was $7,000, and the average was $11,300.

Ways To Pay for a Divorce

There are a variety of ways to fund a divorce. Factors like your income, assets, and needs and preferences will all play a role in the option you choose. According to the experts we spoke with, the first source of funding will be your marital assets—the savings, investments, and other assets you and your spouse share. If those are not sufficient to cover your costs, you have a few options.  

Home Equity Line of Credit

Aviva Pinto, certified divorce financial analyst (CDFA) and managing director at Wealthspire, said one option is a home equity line of credit (HELOC). As long as you and your spouse agree to a loan against a house you both own, a HELOC may make sense as a way to cover divorce expenses.  Depending on your loan, you may be able to borrow up to 85% of the equity in your home. You can withdraw funds as you need to, up to a set credit limit, and you will only pay interest on what you borrow. Plus you may lock in a lower rate than you’d be able to elsewhere.

If you have a fairly low income, you should explore getting help from legal aid organizations. These organizations offer free or low-cost support for a variety of legal issues, including divorce.  “To find out if you qualify for legal aid, you can contact your local legal aid office or visit their website,” said Andrew Lokenauth, a finance and accounting executive, in an email interview. “You can also talk to your divorce lawyer, who may be able to help you find legal aid services in your area.” 

Personal Loan

Another option is a personal loan. Pinto suggested this could be a good choice, as long as you can show separate assets from your spouse and you have a good credit score that can lead to a low interest rate.  With a personal loan, you’ll receive a lump sum of money up front. Then, you’ll repay what you borrow with interest and fees over an agreed upon period of time, which usually ranges from a few months to several years. Personal loans are available at banks, credit unions, and online lenders.

Credit Card

“There are many ways that clients pay for a divorce. Most do so by using a credit card,” said Rajeh A. Saadeh, a divorce attorney at The Law Office of Rajeh A. Saadeh.  Ideally, you’d go this route if you’re confident you can repay your balance quickly and avoid high interest charges. If you have good credit, you might want to use a credit card with a 0% introductory APR period and work to pay off your divorce before the promotional rate ends.

Possible Pitfalls When Paying for a Divorce

There are a couple of routes you want to avoid or tread cautiously with when looking for a way to finance your divorce. “You do not want to draw down on pre-tax retirement assets to pay for your divorce expenses, including attorney fees, as you will be taxed and, depending on your age, penalized for doing so,” said Saadeh. “Also, if you decide to liquidate investment assets, such as stocks or cryptocurrency, any gain may be subject to taxes, which you may want to avoid as well. Depending on the tax rate, however, that may be better than paying for attorney fees using a high-interest credit card,” he said