THE FINANCIAL HEADACHES OF DIVORCE
÷ HOW MUCH COULD IT COST? It is possible to get divorced for anything from €50 to a few hundred euro — if it’s a very basic divorce. However, once legal bills come into the equation, costs could easily run into the thousands — and possibly, tens of thousands. Legal bills will often be high if a divorcing couple have a lot at stake and are unable to agree on key elements of a divorce agreement, meaning it takes years to reach a settlement.
“Take a couple who have two properties of value and three children,” said Roddy Tyrrell, solicitor with lawyer. ie. “Each partner in the couple is on a high income — maybe €90,000 to €150,000 each. There’s a lot at stake there. Over the years, each partner could run up a legal bill of €15,000 to €25,000 to €30,000 each — or more, if hiring one of the more expensive legal firms.”
Some divorce solicitors charge fixed fees and you could hire such a solicitor for €2,000 plus Vat — if your divorce is straightforward, according to Tyrrell. “Where a couple has only been shortly married, have no children and no property, and they want to hire a solicitor for their divorce, they could do so for €1,500 to €2,000 plus Vat, depending on the solicitor,” said Tyrrell. Divorces are rarely straightforward though.
Furthermore, in addition to solicitor fees, you may have to pay for barristers, forensic accountants and pension adjustment orders (PAO — a court order which awards all, or a share, of an individual’s pension to a former spouse). ÷ COULD THE SETTLEMENT COST ME? Legal bills are just one element of divorce costs. There are also the costs that come with a settlement. A spouse may have to give a good chunk of his or her pension — and other income and assets — to the other spouse.
One of the spouses may have to move out of the family home — and face the cost of either buying another property or renting one out. Maintenance must usually be paid for dependent children — and may also be due to a spouse.
“If you have a husband who is worth €10m and a wife who has been married to him for 30 or 40 years, she may get half that and settle for 40pc — though half of that 40pc might be the family home she’s living in,” said Muriel Walls of Walls and Toomey. ÷ ARE THERE OTHER FINANCIAL HEADACHES? Family finances must usually be reorganised — particularly when one spouse leaves the family home. Decisions will need to be made around responsibility for bills in the family home — and how much (if anything) should be contributed towards those bills by the spouse who has left the home.
You also need to agree whether or not you should close any joint bank or utility accounts — and how any outstanding debts (such as car loans or credit card bills) and joint insurance policies (such as life insurance) be dealt with.