“How much will my divorce cost?”
It is one of the first questions people ask when they begin considering separation or divorce in Alberta.
It is also a question that does not have one simple answer.
The cost of ending a marriage can vary considerably depending on whether spouses have already reached an agreement, whether they need help resolving disagreements, whether they have children, whether property and support issues are complicated, and whether their separation develops into contested litigation.
There is an important point that often gets overlooked:
The divorce itself may not be what makes separation expensive. The unresolved conflict surrounding the divorce often determines how complicated and costly the process becomes.
A couple who has resolved parenting, support, property and financial issues is in a very different position from a couple who needs those matters decided through a contested court process.
For separating couples in Calgary and throughout Alberta, understanding the different processes available can help them make more informed decisions about both the financial and emotional cost of separation.
At WIN/WIN Divorce Resolution, mediation is often the starting point for couples who need help reaching agreement. Once decisions have been made, WIN/WIN can also assist with preparation of separation agreements and uncontested divorce documentation.
WIN/WIN provides information, mediation and paralegal services. We do not provide legal advice. Clients should obtain independent legal advice from an Alberta family lawyer when advice concerning their individual rights and obligations is required.
There Is No Single “Cost of Divorce” in Alberta
When people search online for the cost of divorce, they often hope to find one number.
In reality, several different costs may be involved.
Depending on your circumstances, they can include:
- mediation fees;
- legal fees;
- separation agreement preparation;
- independent legal advice;
- uncontested divorce preparation;
- court filing fees;
- accounting or tax advice;
- property or business valuations;
- pension information or valuations;
- real estate expenses;
- refinancing costs; and
- other professional services required by the circumstances.
The amount spent can therefore depend less on the fact that you are divorcing and more on how many issues remain unresolved and how those issues are resolved.
That distinction is important.
The Three Very Different Divorce Scenarios
Consider three hypothetical Calgary couples.
Couple A: They agree on almost everything
They have already discussed their separation.
They know what will happen to their property. They have worked out parenting arrangements. They understand their debts and have reached decisions about support.
They primarily need help documenting their agreement and proceeding with an uncontested divorce.
Their professional requirements may be relatively limited.
Couple B: They agree on some things but need help with others
They agree that they should separate and would prefer to avoid court.
They may agree on the general parenting arrangement but disagree about holidays.
They may agree that one spouse will keep the house but have not resolved how the other spouse’s interest will be dealt with.
Or perhaps child support is understood but spousal support remains unresolved.
They may benefit from mediation to resolve those remaining issues.
Once agreement is reached, they can move toward preparation of a separation agreement and potentially an uncontested divorce.
Couple C: Almost everything is contested
Communication has broken down.
There are disagreements about parenting, support and property. One or both spouses begin contested court proceedings. Lawyers may need to prepare correspondence, applications, affidavits, financial disclosure, settlement proposals and other materials.
If issues cannot be settled, hearings or a trial may ultimately be required.
These three couples are all getting divorced.
But their costs may be dramatically different.
What Does an Uncontested Divorce Mean?
An uncontested divorce generally refers to a divorce where the spouses are not asking the court to decide a dispute between them about the divorce.
This does not mean that the spouses never disagreed.
They may have had significant disagreements earlier in their separation.
The important difference is that those issues have been sufficiently resolved so the divorce itself can proceed on an uncontested basis.
That is why resolving disagreements early can be so valuable.
For some couples, mediation is what allows a separation that began with disagreements to eventually become an uncontested divorce.
What Does the Alberta Court Charge to Start a Divorce?
There are court fees associated with the divorce process.
At the time of publication, the Government of Alberta lists the Court of King’s Bench commencement fee for a Statement of Claim for Divorce at $310, which includes the $10 fee for registration with the Central Registry of Divorce Proceedings.
That should not be confused with the total cost of obtaining a divorce.
It is simply a court fee.
Professional fees for document preparation, legal advice, mediation or other services are separate.
Court fees can also change, so the current Government of Alberta fee schedule should always be checked when proceeding.
Why Can Divorce Become So Expensive?
The greatest variable is often not paperwork.
It is disagreement.
Imagine a disagreement about the family home.
One spouse wants to sell.
The other wants to remain in the home.
The parties disagree about its value.
Then they disagree about whether the spouse who wants the home can qualify to refinance it.
Then questions arise about repairs, carrying costs, the mortgage and when a sale or transfer should occur.
One unresolved issue can generate multiple additional questions.
Now multiply that across:
- parenting;
- child support;
- spousal support;
- property;
- pensions;
- investments;
- debts;
- a business; and
- the family home.
The cost of separation can increase as more professional time is required to resolve those disputes.
Where Does Mediation Fit?
Mediation provides separating spouses with a structured way to work through unresolved issues with the assistance of a neutral third party.
The mediator does not decide who wins.
The mediator does not impose a result.
The mediator does not represent either spouse.
Instead, the mediator helps identify the issues, facilitates discussion and assists the parties in exploring possible solutions.
The spouses make the decisions.
This distinction is central to understanding why mediation can affect the cost of divorce.
Rather than paying professionals to conduct every negotiation between two opposing positions, mediation gives the parties an opportunity to participate directly in resolving their disagreements.
That does not guarantee that every issue will be resolved.
But when mediation succeeds, the number of issues requiring further intervention can be reduced substantially, if not completely resolved.
Is Mediation Cheaper Than Going to Court?
It can be, but responsible professionals should be careful about promising a particular result.
Every family is different.
A short mediation involving one unresolved issue is very different from a complex mediation involving parenting, support, several properties and a privately owned business.
Similarly, court proceedings vary enormously in complexity.
However, the Government of Canada identifies cost and speed as potential advantages of family dispute resolution, noting that resolving issues through agreement can be less expensive and faster than going to court.
The Government of Alberta likewise recognizes that resolving disputes through mediation is a highly effective way of resolving family disputes, and the courts may require mediation before proceeding through the courts.
The reason makes practical sense.
The more spouses can resolve themselves, the fewer disputed matters remain for others to resolve.
Mediation Is Not About Avoiding Lawyers at All Costs
This is an important distinction.
The objective of mediation should not be:
“How can we make sure neither of us ever speaks to a lawyer?”
There are circumstances where legal advice is extremely important.
A family lawyer can explain your individual legal rights and obligations and advise you about the consequences of a proposed agreement.
That is different from the mediator’s role.
At WIN/WIN, Shelly-Ann Petz acts as a neutral mediator. She does not provide legal advice to either party.
Clients may obtain independent legal advice during the mediation process and should obtain appropriate advice regarding a proposed separation agreement.
The more useful question may therefore be:
“How can we use each professional for the work we actually need?”
For some couples, that means using mediation to resolve issues together and lawyers for independent legal advice rather than having lawyers conduct every stage of the negotiation.
What Happens During Divorce Mediation?
The process depends on the family and the issues involved.
Generally, the parties first identify what needs to be resolved.
That could include:
- parenting schedules;
- holidays;
- decision-making;
- child support;
- children’s expenses;
- spousal support;
- the family home;
- bank accounts;
- investments;
- pensions;
- debts;
- property division; and
- other practical separation issues.
If financial matters are being discussed, appropriate financial information needs to be available.
This can include income information, tax documents, account statements, mortgage information, pension information and details concerning assets and liabilities.
The purpose is to create enough clarity for meaningful discussions.
The mediator then helps the parties work through the unresolved issues.
Financial Disclosure Can Save Time Later
Trying to negotiate without adequate financial information can create unnecessary problems.
Suppose one spouse believes the other has $40,000 in an investment account while the actual value is $90,000.
Or one person believes the mortgage balance is substantially different from the current balance.
Or nobody has obtained current pension information.
Attempting to negotiate property division using incomplete information may result in discussions that have to be repeated later.
Organizing financial information before or during mediation can therefore improve the efficiency of the process.
The Government of Alberta also requires financial information to be exchanged when financial matters are discussed through its family mediation program.
Although private mediation is a separate service, the underlying principle remains sensible:
Good financial decisions require good financial information.
The Hidden Cost of Fighting Over Small Issues
Divorce decisions should not be made purely on cost.
Some issues are extremely important and require professional attention.
But separating couples can benefit from distinguishing between an issue’s financial value and its emotional value.
Consider household contents.
It is possible for two people to spend significant professional time arguing over furniture or household items whose replacement value is less than the cost of continuing the dispute.
That does not mean personal belongings are unimportant.
Some have significant sentimental value.
The point is to periodically ask:
What are we trying to accomplish, and what is this disagreement costing us?
A mediator can help keep discussions focused on practical resolution.
The Cost of Divorce Is Not Only Financial
There is another form of cost that is harder to put into a spreadsheet.
Conflict consumes time and attention.
It can affect:
- children;
- work;
- sleep;
- extended family relationships;
- communication between parents;
- future co-parenting; and
- the ability of both people to move forward.
Parents may continue interacting for many years after the marriage ends.
Graduations, school events, sports, medical decisions and eventually weddings and grandchildren do not disappear because a divorce judgment was issued.
This is one reason WIN/WIN’s philosophy focuses on resolution rather than creating winners and losers.
When Mediation Leads to a Separation Agreement
Reaching decisions during mediation is not necessarily the end of the process.
Those decisions usually need to be properly documented.
This is where WIN/WIN’s service model differs from a business that provides mediation alone.
For many clients, the process can progress from:
Mediation
to
Agreement
to
Separation Agreement Preparation
and eventually, where appropriate,
Uncontested Divorce.
When mediation succeeds in resolving the outstanding issues, WIN/WIN can assist with the paralegal and document-preparation side of the separation.
The parties can obtain independent legal advice regarding the agreement.
Why a Separation Agreement Matters
A separation agreement can document decisions concerning matters such as:
- parenting;
- support;
- property;
- debts;
- the family home;
- pensions;
- investments;
- insurance;
- future obligations; and
- methods for dealing with future disagreements.
A separation agreement is a legal and binding contract between the parties that is comprehensive and detailed setting out agreements relating to division of property, parenting matters, support and other matters.
It is the foundation to move forward with an uncontested divorce.
How Financial and Tax Considerations Can Affect the Real Cost
Dividing property is not always as simple as splitting every number in half.
Different assets can have different characteristics.
Consider two hypothetical assets each showing a value of $100,000.
One might be cash.
Another might be held in a registered retirement account.
Those assets may not have identical liquidity or tax consequences.
Likewise, keeping a family home may sound attractive until mortgage qualification, property tax, insurance, utilities, repairs and maintenance are considered.
The important question is not always:
“What is this asset worth today?”
Sometimes it is:
“What does receiving this asset mean for me financially?”
Shelly-Ann has substantial education and experience in financial matters and can assist clients in understanding information and identifying practical financial or tax considerations that may need further investigation.
WIN/WIN does not provide investment, accounting, tax or legal advice. When specialized advice is required, clients should consult the appropriate accountant, tax professional, financial adviser or lawyer.
What About Pensions?
Pensions can be particularly important during separation, especially for couples approaching retirement.
A pension may represent one of the largest assets accumulated during a relationship.
Understanding what information is required and obtaining appropriate pension documentation can therefore be an important part of financial disclosure and settlement discussions.
Complex pension issues may require specialized professional advice.
Ignoring a pension simply because it is not immediately accessible cash can create a distorted picture of the family’s assets.
What About the Family Home?
The home frequently creates both financial and emotional questions.
Possible outcomes might include:
- selling the property;
- one spouse retaining it;
- transferring one spouse’s interest;
- delaying a sale in appropriate circumstances; or
- another arrangement agreed upon by the parties.
But keeping a home requires more than agreeing that one person wants it.
Questions can include:
Can that spouse qualify for financing?
Can they afford the carrying costs?
What is the current value?
What is the mortgage balance?
Are there other secured debts?
How will the other spouse receive their share?
Are there tax or transaction considerations?
Working through those questions before finalizing an agreement can help prevent unpleasant surprises.
How Much Does an Uncontested Divorce Cost?
The total cost depends on the services required.
Court filing fees are only one component.
There may also be professional fees for preparing and processing documents.
WIN/WIN provides uncontested divorce services and can explain its current fees during the consultation.
Rather than publishing a price that may eventually become outdated, clients should contact WIN/WIN for the current fee applicable to their circumstances.
The more important distinction is that an uncontested divorce generally assumes the parties are not asking a judge to resolve a collection of outstanding disputes.
If substantial issues remain unresolved, they may need to be dealt with before the matter can proceed as expected.
How Much Does a Contested Divorce Cost?
There is no responsible universal answer.
Contested proceedings can range from a relatively limited disagreement that settles quickly to lengthy litigation involving multiple applications and ultimately a trial.
Costs can depend on:
- the number of disputed issues;
- the amount of financial disclosure;
- complexity of assets;
- whether experts are required;
- number of court applications;
- amount of lawyer time;
- whether settlement occurs;
- length of any hearing or trial; and
- conduct of the parties.
Alberta’s court fee schedule itself illustrates how additional procedural steps can create additional charges. Beyond the commencement fee, fees may apply to various applications and trial-related steps.
Those government charges still do not include professional legal fees.
Is the Cheapest Divorce Process Always the Best One?
No.
Cost matters, but it should not be the only consideration.
A process that is inappropriate or unsafe is not a good choice simply because it appears inexpensive.
Mediation may not be appropriate in circumstances involving family violence, coercive control, significant intimidation or other conditions that prevent safe and meaningful participation.
There may also be circumstances requiring urgent legal advice or court intervention.
The objective should be to choose a process appropriate to the family’s circumstances—not simply the process with the smallest advertised price.
What Does Canadian Divorce Law Say About Resolving Issues Outside Court?
Family dispute resolution is not merely a private-industry concept.
Canada’s Divorce Act says that, to the extent it is appropriate, parties to a proceeding should try to resolve matters through a family dispute resolution process.
Those processes can include mediation, negotiation and collaborative approaches.
That does not mean everyone must mediate.
Safety and appropriateness remain essential.
It does demonstrate that resolving family disputes through agreement rather than immediately relying on adjudication is an established part of Canada’s family justice framework.
Five Ways to Help Control the Cost of Separation
1. Organize your information
Gather financial records before attempting to resolve financial matters.
Better information can reduce repeated discussions.
2. Identify what is actually disputed
Do not treat every issue as contested simply because the relationship has ended.
Write down what you already agree about and what remains unresolved.
3. Consider mediation for unresolved issues
If mediation is appropriate, it may provide a structured way to resolve disagreements before they develop into larger disputes.
4. Use the right professional for the right task
A mediator facilitates resolution.
A lawyer provides legal advice.
An accountant provides accounting or tax expertise.
Other specialists may be appropriate depending on the assets and circumstances.
Using professional expertise strategically can be more efficient than asking one professional to solve every aspect of the separation.
5. Document the agreement properly
Once decisions have been made, move from conversation to documentation.
A properly prepared separation agreement provides clarity about the parties’ responsibilities and establishes a foundation for moving forward.
The WIN/WIN Approach to Divorce Costs
WIN/WIN Divorce Resolution does not begin with the assumption that every separating couple needs an adversarial process.
We begin by determining where the couple is today.
If you disagree: mediation may help you work toward resolution.
If you have reached agreement: WIN/WIN may be able to assist with preparation of your separation agreement.
If the issues have been resolved and you are ready to legally end the marriage: WIN/WIN may be able to assist with uncontested divorce documentation.
Some clients need all three stages.
Others need only one.
The objective is to provide the services that are actually required.
Frequently Asked Questions About Divorce Costs in Alberta
What is the Alberta court filing fee for a divorce?
At the time of publication, the Government of Alberta lists a $310 commencement fee for filing a Statement of Claim for Divorce in the Court of King’s Bench. Court fees can change, so confirm the current amount before filing.
Is mediation less expensive than using lawyers?
It can be, particularly when mediation helps the parties resolve issues that would otherwise require more extensive negotiation or litigation. However, every situation is different, and mediation should not be selected solely because of price.
Can we use a mediator and still talk to lawyers?
Yes. The roles are different. A mediator remains neutral, while each party can obtain independent legal advice from their own lawyer.
Does WIN/WIN provide legal advice?
No. WIN/WIN provides information, mediation and paralegal services. Shelly-Ann Petz does not act as either spouse’s lawyer and does not provide legal advice.
What if we already agree about everything?
You may not need mediation. WIN/WIN can discuss whether separation-agreement preparation or uncontested-divorce services are appropriate for your circumstances.
What if we agree about almost everything?
Mediation can focus on the remaining disputed issues. You do not necessarily have to renegotiate matters you have already resolved.
Can WIN/WIN prepare our separation agreement after mediation?
WIN/WIN provides separation-agreement preparation services once the parties have reached the necessary decisions. Each person should obtain appropriate independent legal advice concerning the agreement and their individual rights and obligations.
Can WIN/WIN also help with the uncontested divorce?
Yes. Uncontested-divorce document preparation is part of WIN/WIN’s paralegal services, making it possible for some clients to move from mediation through agreement preparation and then toward the uncontested divorce process.
Start With the Problem You Actually Need to Solve
If you are worried about how much your divorce will cost, begin by identifying why you expect it to be expensive.
Do you disagree about parenting?
Property?
The house?
Support?
Or have you actually reached agreement and simply do not know how to document it and complete the divorce?
Those are very different situations.
You may not need a battle.
You may need a process.
For many separating couples, that process can begin with mediation.
Speak With WIN/WIN Divorce Resolution in Calgary
WIN/WIN Divorce Resolution helps separating couples in Calgary and Alberta work toward practical resolution.
Whether you need assistance resolving disagreements through mediation, preparing a separation agreement after reaching agreement, or completing uncontested-divorce documentation, the first step is determining where you are in the process.
WIN/WIN Divorce Resolution
Calgary, Alberta
Shelly-Ann Petz — Mediator & Paralegal
Telephone: 403-462-4996
Contact WIN/WIN to arrange a free 20-minute telephone consultation.
Important Information: This article provides general information only and is not legal, tax, accounting, investment or financial advice. WIN/WIN Divorce Resolution provides information, mediation and paralegal services and does not provide legal advice. Family circumstances differ. Obtain advice from an Alberta family lawyer and other qualified professionals concerning your individual circumstances where appropriate.