Introduction
When a couple makes the difficult decision to divorce there are a huge number of variables and concerns arising that need to be attended to. One of the biggest constraints to moving forward is the cost of the divorce process. Mediation can help minimise costs in relation to addressing issues between parties. In stating this it’s important to note the costs attached to family dispute resolution (family mediation) and why they are as they are. In short, there are a number of variables and the blog below will help shed light on what they are.
How Much Does Mediation Cost?
This is a continuum that reflects the nature of the mediation service parties engage with.
Partially government funded can cost each participant roughly $20-$70 per hour. For those seeking out a private practitioner they will likely charge between $1500-$6000 for a total mediation package for the divorcing couple. If choosing to use the services of a lawyer-mediator expect to pay significantly more again. At Resolutions Australia we know of lawyer-led mediations going comfortably into the tens of thousands of dollars.
What You’re Actually Paying for in Mediation?
Many family dispute resolution practitioners charge for the entirety of the mediation package. Effectively, the total cost is given with no breakdown into the different component parts of the process. Others will break down costs across factors such as…
The First Intake or Assessment Session
If engaging a family mediator privately this 60-90 minute session can cost anywhere between $200 and $400, per person.
The Cost of the Mediation Sessions
The mediation session itself is usually a 4 hour time block and can cost between $500 and $1500 per person.
Venue Hire (and How Online Mediation Saves It)
If the mediator doesn’t have office space and a neutral venue is needed then room hire costs will apply. These could be at a local community centre, professional offices, a hotel meeting room or similar.
Optional Extra Costs to Be Aware Of
Unfortunately there can be a number of extra charges attached to family mediation. If a child report is sought it may cost several thousand dollars. There may be a charge for drafting agreements or providing a Section 60i certificate. If clients wish to have their lawyers attend this will add a significant cost. Likewise if co-mediation is used, whereby 2 mediators work together with the parties.
At Resolutions Australia we always recommend potential clients do their homework, shop around, speak with a range of providers, and ask for a full, no surprises quote for mediation.
What Affects How Much Mediation Costs?
Private Mediators vs Free Government Services
Private mediators do not receive government funding and as such they charge more than government funded services. In saying this, government funded services operate very differently to the private sector. The NGO, part funded providers usually have lengthy waiting lists, the mediation sessions are shorter (2-3 hours) and there is every likelihood that you won’t get to engage with the same family mediator throughout the process. Initial phone call with a receptionist, intake with a lesser experienced mediator or student mediator, and then the mediation session with yet another person. Following mediation you might be handed off to someone else to have referrals arranged if needed. If your mediator is ill or on leave then expect a different staff member to step in at the last minute with little knowledge of your case other than what they’ve seen in the few minutes they have from picking up the file to welcoming you into the room.
Bluntly put, just not an ideal situation to be in when making plans for the most important people in your life!
Parenting Matters vs Property Settlements
At Resolutions Australia it has been our experience that parenting matters are resolved faster than financial and property matters. With property and finances the process can become drawn out depending on the extent of the property and financial holdings to be divided, debate regarding value, and deliberations around what an appropriate split should be in light of meeting the best interests of the children.
With this in mind many divorcing couples spend a lot of time gathering information, getting valuations, considering a range of options, and forecasting possible future needs, all before the mediation session(s) proper.
If the situation being mediated is overly complicated and includes such complex issues as inheritances, farming businesses, extended family business interests, long term inter-generational financial and business holdings, or maintaining shares in a mutual venture then a specialist financial and property mediator may be required. This will likely incur an added expense.
The Number and Length of Your Sessions
As noted above, for property and financial matters more than one mediation session may be needed. If a couple wishes to engage in parenting and property mediation then they will likely need more than the one standard session. At Resolutions Australia we’ve had mediations that lasted over 16 hours split into 4 hour sessions.
Some matters may be relatively simple and need less than the standard 4 hour block and your mediator may well agree to a reduced price for a shorter, fixed length session.
All can be discussed with your FDRP however expect that if extra time is needed it will come at a cost.
Online Mediation vs Meeting in Person
Resolutions Australia have perfected our online family mediation process. It means lower business overheads and a greater, countrywide reach. As such our charges are significantly lower than almost all our private competitors. We’re able to do this by not having a ‘shop front’, huge I.T resources, reception and ancillary staff, or ongoing business expenses connected to a physical premises.
Expect to pay more for those that do. If a family mediator is in practice in a CBD location or high profile/high traffic area then ultimately it will be the clients who pay for the expense that comes with this.
How Mediation Costs Compare To Going to Court?
The beauty of family mediation is that at no point do clients need to engage lawyers or attend court. Also, when you’ve finished mediation you’ve arrived at your own solutions which means the likelihood of needing to re-mediate is very low. Compare this then to having decisions made for you by the Family Court. If you’re not happy with them you need to appeal or seek a change to the orders. Time and money!
At Resolutions Australia we charge a total family mediation cost of $1600 per couple. If a former couple decide to resolve their issues via lawyers and court each will face bills well into the tens of thousands of dollars. That’s after the former couple have likely failed to reach agreement through a protracted back and forth between respective lawyers at $1000 a letter.
Your day in court will include your lawyer’s preparation time and time on the day. They will likely recommend you engage a barrister (a lawyer specialising in presenting in court) for the hearing, cost to brief them, time on the day, they may suggest getting a family report for another few thousand dollars, expert witnesses such as the report writer, child psychologist, business valuation expert, accountant etc. Travel time, possible accommodation expenses, time engaged with the hearing… the list is a long one!
Clients will potentially be out of pocket tens of thousands of dollars and may receive a decision not to their favour. Want to appeal? More expense with no guarantee of an improved result. Surely not in the best interests of the children.
How the Cost Is Usually Split Between Both Parties?
This can take a number of forms. Usually each client simply pays their own mediation costs. If the separation is recent and a mutual bank account is held then one may pay for both. The beauty of family mediation is that as the costs are significantly less than legal bills most clients usually don’t require special payment plans or options. Importantly, unlike lawyers most family mediators will seek payment at commencement.
How to Keep Your Mediation Costs Down
Be prepared! Read all the information your family mediator provides you. Ask questions and engage with your mediator to a point where you’re feeling comfortable about the nature of the mediation process.
Follow this up by considering options, deciding on hard limits, pondering what constitutes ‘best interests’, and identifying areas in dispute you feel comfortable negotiating around. Think of pathways forward and develop proposals.
By doing this you will arrive at mediation confident and with pathways ahead of you. Those who arrive underprepared inevitably need longer, or multiple sessions.
Clear, Upfront Mediation Pricing With Resolutions Australia?
As mentioned above Resolutions Australia utilises a business model that has a broad reach and costs that are totally transparent from even before first contact.
Unlike so many of our competitors we actually have our charges listed clearly on our website. You know what you’re paying for from the start. No ‘quotes’, no complicated list of additional expenses, no wiggle room hidden in fine print.
On top of this is the fact that when you contact Resolutions Australia you’re dealing with a qualified, accredited FDRP from the start. They are legally obligated to provide clarity around costs and as such are more than happy to discuss any aspect of pricing with you.
If you’re looking to engage a mediation service who value integrity and client value for money above all else then we here at Resolutions Australia would love to hear from you!
FAQs
How much does a private mediator cost per hour?
Generally speaking most private family mediators charge the equivalent of $200-$400 per hour.
Is mediation free in Australia?
Only a tiny proportion of people may be eligible for free mediation. ‘Free’ will also likely not mean no cost. There will usually be a small nominal fee charged.
How much does online mediation cost?
At Resolutions Australia we charge one of the lowest rates for online mediation. A total mediation package will cost $1600 per former couple.
Does mediation cost less than court?
Significantly! We have anecdotal evidence that suggests going to court will likely cost up to 10 times as much as attending family mediation.
