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Can economic mediation help control high-asset divorce costs?

On Behalf of | Jan 28, 2023 | Divorce, Family Law

The more assets you have, the more complex and costly the task of sorting through the financial aspects of your divorce will be.

In the state of New Jersey, the courts will require many couples to participate in economic mediation. What is this and can it help to control the costs of a high-asset divorce?

What it is

Economic mediation is the next step if you and your soon-to-be-ex cannot resolve the financial matters pertaining to your divorce during a Matrimonial Early Settlement Panel. The two of you will meet with an economic mediator, a neutral third party whose goal is to guide you toward a settlement that is satisfactory to you both.

How it works

You and your spouse will meet with the economic mediator and your respective attorneys outside of court. This is a confidential process. Under New Jersey law, the first two hours of mediation are free after which the mediator bills at a previously agreed-upon rate. Since you and your spouse take part in resolving major financial issues prior to your case going to trial, economic mediation stands to save you significant time and expense as compared to litigation.

Why an MOU

If economic mediation successfully produces a settlement, the economic mediator and the respective attorneys must draw up a Memorandum of Understanding or MOU. The MOU confirms that the settlement covers the major issues between the divorcing parties. The New Jersey Supreme Court ruled that the drafting and execution of any such agreement reached during economic mediation must take place at the time of mediation or the settlement will be unenforceable.

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