What Are the Financial Implications of Mediating a Divorce Settlement?

How Will Mediation Affect Your Finances in a Divorce?

Divorce mediation can save divorcing spouses in California from the burden of a lengthy, costly, and possibly acrimonious divorce trial, but before you enter the mediation process or file for divorce in Santa Clara County, seek the advice of a Campbell divorce mediation attorney.

The divorcing spouses – rather than a judge who is a complete stranger – control the mediation process. Your final divorce agreement will be based on your needs and your ex-spouse’s needs, and not on a judge’s opinion. Divorce mediation can also help you protect your finances.

It lets you participate in the division of properties and assets, so you’ll have a role and a say that you would not have in a trial. Still, you must be advised by a Campbell divorce mediation lawyer who will represent you at trial if mediation fails to yield an acceptable final agreement.

What Should You Know About Divorce Mediation?

Family law cases in California do not always go to court. Many divorces and other family law cases are resolved entirely outside of the courtroom through mediation. Mediation is usually faster than a trial, less costly, and typically leads to better outcomes for everyone involved.

Mediation sessions are conducted by a neutral mediator who is trained to help divorcing spouses understand what must be resolved, to encourage compromise and cooperation, and to ensure that divorcing spouses understand the consequences of the compromises and decisions they make.

Even if divorce mediation does not lead to a final divorce settlement, the divorcing spouses can reduce the number of disputes that the court must resolve and reduce the time and expense of a divorce trial. And unlike a divorce trial that goes on the public record, mediation is confidential.

When is Mediation Mandatory?

Mediation is required by the law in California in cases that involve a dispute over child custody or parental visitations or when the court has issued a domestic violence restraining order. Divorce mediators in this state cannot act as family law attorneys and may not offer legal advice.

A mediator cannot compel spouses to agree to anything. The mediation process requires the honest and voluntary participation of the divorcing spouses. If one spouse isn’t forthright – or is merely stalling – it may be impossible to reach a final divorce agreement through mediation.

This cannot be stressed strongly enough: In Santa Clara County and throughout the greater San Jose area, before you file for divorce or begin the mediation process, it is essential to retain the advice and services of a knowledgeable and experienced Campbell divorce mediation attorney.

What Does Mediation Require?

There is no “discovery” process prior to mediation, and divorcing spouses are expected to make honest, voluntary, and full financial disclosures. The mediator will ask each of the spouses to provide extensive financial information and documents including but not necessarily limited to:

1. pay stubs, tax returns, credit card statements, and bank statements
2. mortgage information
3. retirement account details
4. car payment details and information regarding any other loans and/or debts

If your spouse is obviously not telling the truth about his or her finances, concealing assets, or obstructing the mediation process in some other way, a mediated divorce settlement may not be possible, and a divorce trial will become necessary.

How Can Mediation Help You Protect Your Assets?

In California, the divorce mediation process can help you protect your properties and assets and safeguard your long-term best interests because it allows for:

1. Direct control of the process: The divorcing spouses negotiate the division of properties and assets directly with one another in the divorce mediation process. You can prioritize what is important to you, and you may choose to compromise on less important matters.
2. Consideration of the details: Mediation will give you the time and freedom for in-depth discussions about your assets, including the most complicated financial arrangements, so that all aspects of your finances are given fair and thorough consideration.
3. Innovation and flexibility: Divorce mediation facilitates innovative solutions to the division of properties and assets – solutions that might be disallowed or deemed impossible in a traditional divorce trial.
4. Confidentiality: Divorce mediation in California is almost always confidential, so it gives you the freedom to discuss important and sensitive financial matters openly and in detail.
5. A more cost-effective divorce: In a complicated California divorce trial, the legal fees and court costs can be exorbitant. If it succeeds even partially, divorce mediation can considerably reduce those costs.

What if Mediation Fails?

Divorce mediation is not going to succeed for every divorcing couple. When divorcing spouses cannot reach an agreement on the division of property and assets, spousal support, child custody, and/or child support, they will probably end up going to court in a traditional divorce trial.

When you divorce in or near the San Jose area, whether your divorce involves mediation or a traditional divorce trial, you must be represented and advised by a Campbell divorce mediation lawyer who understands your concerns and routinely represents clients who are divorcing.

Who Can You Trust for the Legal Advice You Need?

If you and your spouse are divorcing in Santa Clara County, let the family law team at Hepner & Pagan handle your case. We will explain how the law applies to your divorce, file the necessary legal paperwork, negotiate your divorce settlement, and help you move positively into the future.

Hepner & Pagan will work to keep your divorce out of the courtroom. We are committed to a better way. We have years of experience guiding clients through mediation, and we’d like to do that for you. We strive to ensure that your case is focused on communication, transparency, and the protection of the properties and assets that are legally and rightfully yours.

If you are divorcing – or if you are anticipating a divorce – in Santa Clara County, immediately schedule a consultation with the family law team at Hepner & Pagan by calling 408-688-9153. We favor mediation, but if necessary, we will fight aggressively in the courtroom on your behalf.