Consumer Corner: How to count the cost of getting divorced

Ending a marriage comes with complications - including financial complications

It’s hard to believe divorce was only signed into law in Ireland in 1996. Fast forward 26 years, and divorce is big business.

Although Ireland has a low divorce rate compared to the rest of the world, the figures are rising. Statistics recorded in 2020 show 5,266 applications for divorce in Ireland, a 29% increase on the previous year.

Financially, there is much to consider with a divorce; from legal fees to pensions, mortgages and tax implications. The cost of hiring a solicitor is just the starting point.

As with most things, the DIY option remains the cheapest. The Irish Divorce Service claims that you can get divorced with their help for just €650. 

They stress that they do not supply legal advice or representation. In Ireland, you do not need a solicitor to get divorced, although many argue that it helps, especially when dealing with a tricky break-up.

There is nothing wrong with shopping around for a solicitor and getting some quotes before you commit. If you are struggling with the costs associated with your divorce, talk to your solicitor about paying in stages. 

You could also be entitled to legal aid - find out by contacting your nearest law centre. Legal aid, however, is not completely free. Another port of call is your local Free Legal Advice Centres (FLAC) which can help with free advice.

Jill Collins, a solicitor with Collins Crowley Solicitors, said the average cost of a divorce depends on a number of factors.

“A divorce could be simple and straightforward, but many divorce cases become complicated and protracted.”

Most solicitors will charge an hourly rate so the costs will vary from €2,000 upwards, she says.

“Without a solicitor, two people can agree terms for a divorce and apply to the Court to have it ruled on consent.

“However, there may be complex issues that may make it very difficult to apply for a divorce without any professional help and you run the risk of leaving yourself exposed, should you leave something significant out of the agreement,” says Collins.

If settlement talks break down and the matter goes to court, associated costs will rise. For a contentious divorce played out in court, costs can reach between €10,000 and €15,000.

Collins adds there are certain things you can do to keep costs down - like getting a property valuation from a jointly-instructed valuer.

Other financial implications can involve tax, pensions and mortgages.

Director with taxback.com, Barry Cahill, says that a person’s tax status may change following a separation, depending on how it was set up when they were married.

“As a starting point, both parties should notify Revenue of any changes as soon as possible, so that the correct adjustments can be made,” he said.

Glenn Gaughran of the Independent Trustee Company said pensions often get overlooked with divorce.

“We often think of the house as being the primary asset but many people still have substantial mortgages, so the net value of the property can be less than we think.

“In contrast, pensions can grow to be worth quite a bit. For example, if a spouse’s pension averaged €500 to €1,000 a month in contributions over the last 25 years, the fund could potentially be worth close to €500,000 now.