How much Alimony will I get?

It’s a common question we hear in our Marital Assessment Interviews (i.e., consultations): “How much alimony will I get?

It seems like a simple enough question. After all, we can tell you exactly how much child support the Primary Residential Parent is entitled to receive in any given situation, so why is this not the case with alimony? ALIMONY wood blocks

Alimony amounts vary a lot from case to case. There are two reasons for this. One is that alimony, unlike child support, is what we call highly fact-specific; that is, it is determined based on the individual situation in each case.

The court is instructed by statute (Tenn. Code Ann. § 36-5-121(i), to be exact) to consider factors such as the relative needs, future earning capacity, age, physical and mental condition, education, assets, and financial obligations of each party; the length of the marriage; the standard of living the parties had during the marriage; and who is at fault for the divorce.

The court is not told exactly how much weight to give each factor, or what factors (if any) should be definitive in deciding the amount and type of alimony to award. (You can read more about the different types of alimony on our earlier blog post here.) Recently, the Tennessee Supreme Court told judges that the two most important factors should be the receiving spouse’s need for alimony and the other spouse’s ability to pay it (Gonsewski v. Gonsewski), but this guidance really does not seem to clarify much at all, because need and ability to pay are also highly fact-specific.

This brings us to the second reason why alimony amounts vary so much from case to case: Differences between judges.

The judges and chancellors of Shelby County are, as a whole, intelligent, fair, and dedicated to doing the right thing. But judges are still human beings, not computers. They are influenced by what they hear and see in the courtroom and by their prior experience. The truth is that the exact same facts presented in exactly the same way to two different judges could result in two different awards.

 As an example, let’s talk about two cases, both of which came from courts in East Tennessee.

  • In the first one, Magill v. Magill, the husband was 47 and made approximately $4,000 per month. The wife, meanwhile, was 42 years old and made about $1,000 per month. The parties had been married for 17 years. The court awarded Mrs. Magill $600 per month in rehabilitative alimony for only 48 months, plus a small amount in attorney fees.
  • Contrast this case with Farnham v. Farnham. Mr. Farnham was 41, made about $5,000 per month, and was at fault for the divorce. Mrs. Farnham was 51, on disability, and made about $1,000 per month. The parties had been married for 17 years, just like the Magills. But the court awarded Mrs. Farnham $800 per month in alimony in futuro. Unlike Mrs. Magill, who only received four years’ worth of alimony, Mrs. Farnham was guaranteed a monthly alimony payment until her death or remarriage.

What seemed like very small differences in the two cases produced very different results. These cases, along with thousands of others decided by Tennessee courts, demonstrate how hard it is to predict alimony awards in this state.

At the Ferrell Law Firm, we can and will estimate for our clients what a fair alimony number might be, but it can only be an estimate. We would love to be able to tell you exactly how much you’re going to receive, but we just can’t do that because of the reasons mentioned above. And neither can any other divorce lawyer or law firm – no matter what they might try to tell you. In fact, if you talk with another divorce attorney and they “guarantee” a certain result or number I advise you to run away fast. The best divorce lawyers in Memphis know that guarantees are impossible.

Cost vs Benefits: Control your emotions if you want to control your divorce costs.

I recently read an article in the British news tabloid called The Telegraph, about a British couple, both lawyers, who got a divorce. They started the divorce with the equivalent of almost $3 million U.S. in assets between them. The divorce and its appeals are now over. The wife received about $150,000 and the husband actually owes more than he has! There are no other assets remaining from the marriage. Now, I don’t claim to know anything about the British legal system, but that seems like a pretty raw deal to me. Even the judge criticized them for the way they squandered their assets in their divorce process.

Divorce: The Cost vs Benefits

Divorce: The Cost vs Benefits

If you’d like to read the article yourself then you can find it by clicking right here.

This is a pretty incredible (but totally true) example of a couple who just did not weigh the cost vs. benefit before they started fighting…or, apparently, at any point during the fight. This couple let their rage and frustration with each other eat up a whopping 95% of everything they had. Their lawyers are undoubtedly eating very well now…but I wonder, did this ex-husband and ex-wife end up any happier than when they started the divorce process?

At the Ferrell Law Firm, we tell clients all the time that our attorneys will absolutely go to court and fight for them. And it’s true, we really will! We believe in our clients and strive to represent their interests at all times. But we also tell clients that they need to make sure the fight is worth the cost to them, because we hope to help them avoid the kind of regret this couple must be feeling now that the heat of the battle has dissipated

We are different from some other law firms, because to us it is not about the money we receive from you. Instead, it is about the results we achieve for you. In the end, we want you to be satisfied with the way things have worked out, and in order for that to happen, you need an honest, thorough analysis of the negatives and positives of any legal options you’re considering.

 

This post by Memphis, TN Divorce Attorney Lori Holyfield of the Ferrell Law Firm.

What is a Divorce Retainer Fee?

I love being able to offer flat fee rates for uncontested divorces here at the Ferrell Law Firm. But sometimes a divorce proves to be more complicated than initially thought, or it starts out difficult from the get go. In those cases, called contested divorces, we instead operate on a retainer fee basis.

Usually when I say the word retainer people nod as if they understand, but there is a glassy and dazed look in their eyes that shouts “what are you talking about”. So if you’re like most people you’ve never dealt with a “Retainer” and don’t know what the word means. And even if you are familiar with the term you may not still find the whole thing confusing or strange. So let me explain what a retainer is and why we use them.

Unlike the personal injury lawyers that you see on TV, divorce lawyers don’t get paid only if they win. Because really, when  a divorce occurs is there ever a true “winner”?

A retainer fee is, basically, you pre-paying for services we’re about to perform for you. Here’s one way to look at retainers.

You decide that you want to hire me to represent you in your contested divorce. Of course when you hire me I’m going to require you to pay for my product. As an attorney my “product” is my time spent on your matter using the knowledge and experience I have. 

The problem is I don’t know exactly how much of my product will be needed to help you solve your problem. And once my product is used I can never get it back, and I likely turned down other people who wanted to pay me for my product but I had to turn them down because I was using it to help you.

I want to make sure that I get paid for my product, I just don’t know how much product I’ll be using until after I’ve used it. So because of this I have you pay me in advance for my product. This advance payment is what we call a retainer. We require this retainer be refilled every two weeks as long as we are working on your case.

Now Here is an example of how a retainer works:

Say you come in to sign a representation agreement with us for your contested divorce matter. You would pay us right from the start a fixed retainer amount – let’s say $100 to make it easy. 

Then, because we (hypothetically) charge $5 an hour, any time we work on your case we keep track of all the time spent on it, down to the tenth of an hour.  So if in the first month on your case we worked for 3 hours, we would charge $15 against the $100 you initially paid, leaving a month-end balance of $85.

You would then need to pay us $15 to bring your retainer balance back up to the $100, so we can start the next month’s work. 

Let’s say, then, that we finish working on your case that next month, after 10 more hours of work. After taking out the $50 from the retainer for that month, we’re done with your case and all issues have been resolved and we refund you back the remaining $50.

We use retainer fees for our contested divorces simply because it gives us a way to maintain payments in an ongoing case.  There are ways to lower your fees, though, and it comes down to one simple thing: time.  If you as the client offer up your time to make phone calls, send faxes, or secure records by doing your own leg work, that is time not being charged to you by us.

So, if you do have have a contested divorce case here in Memphis and you want to save as much money as possible on attorney’s fees, you need to do as much of the work as possible yourself. And what type of work am I talking about? Things such as contested doctors bills or records, previous court reports and etc. We really don’t want to bleed you dry in lawyer fees,  honestly!

What happens if you don’t refill your retainer back up?

Again, my product is my time that I spend on your case, and I can never get that back after it’s been spent. So, if a client doesn’t refill their retainer account I can’t continue to work on the case knowing that there is no guarantee that I will be paid for my product.

In the event that a retainer isn’t refilled as requested then the only thing I can do is to no longer work on the client’s case and to request to the court to withdraw from the case. I Never like doing this, but unfortunately it does occur very occasionally.

Making the Decision to Seek a Memphis Divorce

Deciding on whether to divorce your husband is always going to be an emotional decision. Even if marital breakdown has occurred to the point where you do not have any romantic feelings left for him, it can still be difficult.

The two of you have built a life together and both of you will face some major changes if you decide to end your marriage. That’s why it vitally important to be as logical about your options as possible when deciding on whether or not you should pursue a Memphis divorce. Every relationship is different and everyone reacts differently to the trials, tribulations, and the arguments that come with being married. Make sure the decision to get a divorce doesn’t come lightly.

Was the breaking of the bond of trust a big factor making you consider a divorce?

For example, did a particular event cause you to want to get divorced? Will you be able to recover from this event? Will you be able to truly move on from this event without reliving it in your mind for the rest of your marriage? And was this a one-time event or was it part of an ongoing series of events?

You also need to look at the overall health of your marriage, and your ability and willingness to continue to pursue the marriage. This means not only do you want to try to make things work, but is your husband also going to make changes and actively work on making the marriage viable.

You need to have a plan for what your post divorce life will be like.

Take a good and honest assessment of how you will be able to manage yourself financially. Where will you live, how will you support yourself, and how will your children handle the effects of your Memphis divorce?

Sometimes it’s easy to decide that you must divorce. These are usually in cases where some type of physical abuse is occurring and you MUST leave the marriage immediately! Under this type of circumstance the decision to divorce is one that must be made and is always in your best interest. However, in some situations it may be best to try to work through the issues causing strife in your marriage. If you do decide that the only solution to your situation is to seek a divorce you should contact a Memphis divorce attorney that you trust to seek advice on the steps to take. It’s important that you don’t make mistakes that could hurt you.

If you have any questions the Memphis divorce attorneys at the Ferrell law firm would be happy to attempt to answer these for you. You can learn more by calling them at 901-754-1340.

Is My Divorce Contested?

We hear it almost every day: “Well, I think we’re pretty much uncontested, there might just be one or two issues that are contested.  Does that mean I’ve got a contested divorce?”

And our answer is: it’s hard to say.  What are your “one or two issues?”  Is it simply who gets the engagement ring and a specific credit card debt?  Or is it a battle royale over child visitation and the house?  When you approach an attorney wanting an uncontested divorce, you need to be in a situation that represents total agreement by both parties.  From who gets that one favorite lamp to child visitation, every “t” is crossed and every “i” is dotted.  If you do find yourself with some minor disagreements, we encourage you to try to come to a compromise for the greater good.  One party or the other will have to give on multiple issues, so choose your battles.

If those “one or two issues” balloon into major entanglements, we would classify your divorce as contested.  Uncontested divorces are entitled to lower fees because they require lesser legal work – contested situations require discussion with opposing counsel or parties, mediation, discovery, and even trial, in addition to the same drafting of documents required in uncontested situations.  We aren’t able, in fairness, to fight your battles for you for the lesser fees we offer to clients who have already settled their skirmishes.  So be honest with yourself and your attorney as you move toward a divorce – keep them abreast of the major conflicts so that they are aware whether or not they can assist you through an uncontested divorce or if they will be participating in a contested situation.

How much does it cost to file for a divorce in Memphis?

If you are wanting to get a divorce in Memphis, Tennessee then you probably want to know how much it’s going to cost you, right?

stacks of dollars

If you’re getting an uncontested divorce it’s pretty simple to tell you exactly how much your divorce is going to cost. But before we can tell you the cost we need to know if you have any minor (under the age of 18) children.

If you do NOT have children then the filing fee (This is the fee that’s payable to the Shelby County Courts, your lawyer does not get to keep this)will be $301.50.

If you DO have minor children the filing fee for the Shelby county courts will be $376.50, no matter how many children you may have.

Next are your attorneys fees. Here at the Ferrell Law Firm we charge a flat rate for uncontested divorces. (Note that we pay for your filing fees out of our all-inclusive fee when we handle your divorce.)

Our attorney’s fees for an uncontested divorce with NO children is $1,799.

Our attorney’s fees for an uncontested divorce WITH children is $2,799.

Why are there different fees depending on whether or not you have children? The reason is because in Memphis divorces where minor children are involved we are required to put together and file a Permanent Parenting Plan or PPP. This PPP requires quite a bit more time to complete and file, that’s why both your lawyer’s fees and the county filing fees are higher. But even then our rate of only $999 for an uncontested divorce with children is a STEAL.

What about contested divorces, how much do they cost?

Contested divorces are an entirely different monster. And I do mean monster. (Let me take a minute here to say you really should try to work things out with your spouse first. If you can’t stay together at least try to agree on property division and custody issues so that you can save THOUSANDS of dollars in attorney’s fees for a contested divorce.)

We never know how much a contested divorce is going to cost you. It’s really impossible to say because we don’t know how many things you and your spouse are going to argue over. Your lawyer’s bill is going to be as high or low as you make it. It just depends on how much you want to fight with your spouse.

I can tell you that our intial retainer fee is normally $5,000 for a contested divorce here in Memphis. And your lawyer will bill you by the hour for the time he or she spends on your case. Our lawyer’s hourly fees start at $175 per hour and go up from there.

At the end of each month we will send you a detailed bill showing you the work that we have done and showing you the balance of funds you have left in your retainer account. Then at the beginning of each month we require money be deposited into your retainer account to bring it back to $5,000.

What will your total cost be for a contested divorce? Again, we can’t tell you that because of all the variables. I can say that most contested divorces at a minimum cost at least $7,500 and they can go way up from there.

If you have any other questions about costs please call us at 901-881-6353 or visit our memphis divorce fees and costs page here.

They Won’t Sign – Now What?

We hear it all the time – you’ve drawn up divorce papers, on your own or with the help of a lawyer, and suddenly your husband or wife refuses to sign.  What are your options now?  Can you achieve a divorce without their signatures?  Unfortunately, you have now shifted from an uncontested divorce to a situation that has become contested.  This often results in higher fees due to the increased amount of effort it takes on the attorneys’ parts to negotiate and achieve a mutual agreement on the points of contention.  It also often takes longer – the back and forth negotiations between busy attorneys and clients multiply the hours and days invested in achieving your divorce.  Mediators might have to get involved to work out the kinks that are holding you back from your goal.

Many of our clients reach this point and hope to stay within the realm of an uncontested divorce, but that option does not best protect either you or your lawyer.  If there are certain factors being argued over, you want your attorney to invest the correct amount of time in best protecting your interests, and that increased time will have to be reimbursed accordingly.  However, if you are able (independently) to achieve the goal of getting your stubborn ex to sign the papers, it is still possible to keep your uncontested flat fee schedule and timeframe.  Be honest with yourself and your attorney when embarking on your divorce journey – if there is a possibility that things could go awry, let them know so they can anticipate disruptions and help you navigate the sometimes bumpy path of a contested divorce.

What do I do If I’ve been served with divorce papers?

 Question:  I just was served with divorce papers from my wife’s attorney and she’s seeking a contested divorce.  I don’t live in the same state as my wife, what do I do? 

Answer In both Tennessee and Mississippi, when a divorce complaint is filed, you will be served with the a copy of the official complaint stating on what grounds the divorce is being filed on. The complaint will also state what state, county and court the case will be heard in.  Once you’ve been served divorce papers the clock starts ticking on your time limit to answer the complaint.

If it’s a contested divorce then you need to get to an attorneys office ASAP. There could be important deadlines that you don’t want to miss and you don’t want to wait until the last minute or else your attorney may not be able to help you. If the case is uncontested then you might be able to work things out on your own without having to hire a divorce lawyer. But this really depends on the complexity of your case and how many assets you may have and whether there are children involved.

My advice is to always call a good Memphis divorce lawyer’s office. Most will be happy to give you a free 30 minute phone consultation at the very least and you can learn more about what you need to do and whether or not you need a lawyer. But whatever you do don’t delay and procrastinate, doing so could cost you a lot of money if a default judgement is found against you.

Collaborative Divorce: “It’s all the rage”

“They call it “collaborative divorce.” It’s apparently all the rage right now.” from the movie Juno

Collaborative Divorce is a “new way to resolve disputes respectfully” and handling divorce out of court.  Our Memphis Divorce Lawyers would like to set the record straight. 

You can refer to this Free Collaborative Divorce Kit provided by the International Academy of Collaborative Professionals for more detailed information about Collaborative Divorce.

Divorce can be an unfortunate and expensive situation.  But it doesn’t have to be that way.  Collaborative Divorce Professionals are a great resource and alternative for dividing families that  have contested issues and the financial resources to fight them out.  You can settle your divorce out of court and inexpensively… with simple professional guidance.  If you want to fight out your divorce, you’ll have to spend a lot of money, whether you settle with collaborative professionals or in court.  Collaborative Divorce is the best alternative to litigating divorce in court.  But don’t spend money on the “new rage” divorce.  Our Memphis Divorce Lawyers can assist you settling an affordable divorce, and enlisting other professional when needed and only if a financial option.

For the average family, Collaborative Divorce is a great guiding principle, but don’t feel that it is the only way to settle your divorce out of court.  Mediation is highly encouraged by all Tennessee divorce professionals, and is an option at any stage of your divorce.

Memphis Divorce: How soon do I need a Lawyer?

As Memphis divorce and family lawyers, the Ferrell Law Firm get as many calls from people who have been served “divorce papers” as those contemplating divorce. Often, the call comes in a few weeks after service of process and after veiled threats from the other spouse that you have “only 30 days to sign or else”. This can leave the lawyer with a frantic client and frightened client.

It is very important that you contact one of the Ferrell Law Firm’s Memphis divorce lawyer as soon as you have been served “divorce papers.” A Divorce Complaint or Petition for Divorce must be formally answered by filing an Answer and/or Counter-Complaint within 30 days of Service of Process. If no Answer is filed, then the filing spouse is entitled to file for Default which will then allow their lawyer to set the Final Divorce Hearing after another 30 days.

Now after all those legal words and requirements, how quickly you really need a lawyer comes down to what kind of divorce you really have going on.

A True Uncontested Divorce… If you and your spouse have contemplated and decided on divorce, and if you agree to negotiate and settle all terms of the Marital Dissolution Agreement and Permanent Parenting Plan, if applicable and any other issues of Support or Property Division. Both spouses then seek independent legal advice and if necessary legal representation before the divorce is filed.

A Potentially Uncontested Divorce or in other words a Potentially Contested Divorce… If you and your spouse have contemplated divorce, but your spouse has already sought legal advice and legal representation and has served you with “divorce papers” and you may or may not be able to agreement on a settlement agreement. You must seek legal advice and legal representation within 30 days of being served in order to preserve your legal rights if the matter becomes a Contested Divorce. Once you have retained one of our Memphis divorce lawyers to represent you, we would file all necessary responses and contact the opposing lawyer about pursuing this as an Uncontested Divorce and negotiating a Marital Dissolution Agreement. If you cannot resolve your issues and agree to a settlement agreement, then the next step is to utilize Mediation to settle all contested matters.

A True Contested Divorce… If you and your spouse have never discussed or agreed on divorce, your spouse has filed for divorce and you are unable to agree to any settlement agreement. You must seek independent legal advice and legal representation immediately to preserve your rights and prepare for the long, expensive process of divorce litigation.

In short, it is in your best interests to retain a lawyer as soon as you have been served “divorce papers” in order to preserve and represent your rights.