For those of you who have read my profile you know that I hold a Master’s degree in Finance which I feel gives me a unique perspective on the matter of divorce mediation.  Recent estimates break mediator backgrounds out as follows:  60% attorneys, 30% social workers / psychologists and 10% financial professionals.   But when you think about it, getting a divorce is probably the second largest financial transaction you will ever undertake, second only to the purchase of a home.  Matters of Equitable Distribution of marital assets and liabilities, Child Support and Spousal Support / Alimony are all financial matters and that is why I strongly feel choosing a mediator with a financial background is one of the most important decisions you can make.

Regardless of what type of mediator you choose, I think there are some compelling reasons, numerically of course, to lead you to choose divorce mediation over litigation. I’d like to present 3 fast facts to you here today and let the facts speak for themselves.

1. 95% of all divorces settle before going to court – studies have shown that a large majority of divorce cases are actually resolved before either party ever sets foot in a courtroom.  There is no doubt that attorneys play an important role in our legal system.  If you were ever going to court to fight a lawsuit you should absolutely hire the best attorney you can but if the chances are 95% in favor of you working out a settlement before court, then shouldn’t you consider using someone other than an a attorney?  Why would you need an attorney if you aren’t going to court?
2. 85% of all mediated child support orders are adhered to one-year later while only 50% of all court-ordered child support orders are – you’ve heard me say this before so please forgive me but even though you are getting a divorce and you are no longer wife and husband, you will always be mom and dad.  When two adults have a hand in agreeing on what a support amount will be, the statistics show they are more likely to adhere to that agreement.
3. Mediated divorces cost between $20,000 & $71,000 less than litigated ones – A recent Wall Street Journal article put the costs of a litigated divorce at $78,000 and a “collaborate divorce” using two attorneys to act as mediators around $27,000.  A mediated divorce is around $7,000, including attorney fees.  And assuming a competent mediator or attorney, the results will be exactly the same.

I hope these fast facts can help you see some of the numerical benefits of mediation. And as always, we at Equitable Mediation Services are here to help and answer any questions you might have about divorce mediation so please feel free to contact us and we’ll be happy to set up a free, no-obligation consultation to discuss your specific situation.

For those of you who have spent time reading my blog, you’ll know I often speak of divorce mediation as a four-part process involving parenting plans, equitable distribution of marital assets, child support and spousal support (or alimony) but did you know that divorce mediation can be used to resolve a single issue in any one of these four areas?

Typically when I get an inquiry for what I’ll refer to as a “single subject mediation,” the caller isn’t really sure we can help them.  I guess we seem to speak of divorce mediation as an entire process when in reality, the issues can be as broad or as narrow as an individual couple requires.  We can mediate pre or post divorce issues and can even help couples who may be having difficulty down the road with an issue totally unrelated to their divorce such as dealing with a teenager’s “independence streak.”

So take some time to view the Equitable Mediation Services website and see if any of the four main subject areas may apply to your situation.  And if you’re not sure, please feel free to contact us as we’re always glad to help answer any questions you might have or point you in a direction where you can find answers.

In Part I of my article on child support in the state of New Jersey we discussed the three main principles behind the New Jersey Child Support Guidelines:

1. Child support is a continuous duty of both parents as the children belong to both of them; and
2. Children are entitled to share in the current income of both parents and not simply the parent who has custody; and
3. Children should not be the economic victims of divorce.

As there are three main principles behind the concept of child support, so too are there three main components that comprise the child support award amount.  According to the NJ Judiciary, the support awards include the child’s share of expenses for the following items:

• Housing
• Food
• Clothing
• Transportation
• Entertainment
• Un-reimbursed health care up to and including $250 per child per year
• Miscellaneous items

and while this list is intended to cover the majority of the expenses one may encounter when raising children, noticeably absent are things such as child care and health insurance which are discussed in addition to the support award amount.  Therefore, couples can “negotiate” even on the support amounts to ensure the needs of the child are met and each parent is paying their share of the costs associated with raising that child.

So how does the actual payment break down?  There are three components:

1. Fixed costs – these are costs incurred even when the child is not residing with the parent. Housing-related expenses (e.g., dwelling, utilities, household furnishings and household care items) are considered fixed costs. Consists of 38% of the amount awarded.
2. Variable costs – these are incurred only when the child is with the parent (i.e., they follow the child). This category includes transportation and food. Consists of 37% of the amount awarded.
3. Controlled costs – these are cost over which the primary caretaker of the child has direct control. This category includes clothing, personal care, entertainment, and miscellaneous expenses. Consists of 25% of the amount awarded.

and while each couple’s situation may be unique, these breakouts are intended to give you a rough idea of what the support amount covers and how it allocates expenses.  Of course, one of the benefits of mediation is that couples can choose to use the support amount recommended by the state of New Jersey’s Child Support Guidelines or negotiate another amount that is more suitable for their particular situation.  Whichever path you choose, your mediator will help you calculate the support amounts and work with you to come to an amount that works for everyone: you, your spouse and your child.

As always, if you have any questions about divorce mediation or child support in general, please feel free to contact us here at Equitable Mediation Services and we’ll do our best to assist you in any way we can.