What's the financial damage caused by a divorce?
1. For non-Muslims divorces
Image source: Says
If both you and your spouse are non-Muslims, then your divorce proceedings will be heard at the High Court under Family Court, instead of a Shariah Court. It usually falls under 2 types of divorce.
If a divorce is ‘uncontested’, it means that both parties agree to the divorce and on all related matters. This includes the custody of children, spousal support and property. An uncontested divorce petition is relatively CHEAPER than a ‘contested’ one. According to The Star, the cost for a joint petition (both parties are in agreement) is estimated to fall between RM3,000 to RM6,000.
That aside, this type of case is quicker to resolve, taking typically three to six months.
- Contested Divorce
What about those people who ARE NOT on the same page? This is known as a ‘contested’ divorce. It means that one spouse may disagree to the divorce or other related issues, such as child and spousal support, the splitting of assets, etc. Because of these issues, the cost can be EXPENSIVE depending on the complexity of the case. The challenging ones are estimated to fall between RM25,000 to RM50,000 - it can go up to RM75,000.
Not only it cost you a lot of money, but the proceedings can drag on for years!
Additionally, there are some of the court fees that you need to take note of:
- Filing of a divorce petition - RM160
- Filing of an affidavit - RM18/piece
- Issuance of decree nisi - RM300
- Issuance of decree nisi absolute - RM150 (source: Fion Wong)
2. For Muslim divorces
Image source: CILISOS
If you and your spouse are of the Muslim faith, then your divorce (if contested) will be heard by the Shariah Court. These are the estimated fees for a Muslim divorce:
- Warrant and Testimony AM 80 - RM25
- Delivery of the warrant by the court - RM4
- Interlocutory application (outside the jurisdiction) - RM23 (if needed)
- Interlocutory application (compensation summon) - RM13 (if needed)
- Affidavit for a show-order for someone who is incarcerated (in prison) - RM13 (if needed)
- Interlocutory order - RM10, for each order that is sent out
Legal fees for contested applications – Estimated costs are difficult to pin down due to various reasons such as when multiple petitions are filed, complexity and how heavily contested; costs can also depend on how rich or poor an individual is (up to the discretion of the lawyer hired to charge accordingly).
SIDE NOTE: For both Muslim and non-Muslim divorces, mediation is a less costly (and sometimes faster!) way to negotiate settlements in a divorce, with estimates ranging from RM5,000 to RM15,000.
Wah, that's a lot of money! Can you get through a divorce without a lawyer?
Since legal fees tend to form the bulk of divorce costs, it may lead some to wonder if they should represent themselves – and technically, they can.
Individuals can file court documents by themselves, but it isn’t advisable, especially in contested cases and if they do not have the know-how. Furthermore, good lawyers can assist with negotiating a better settlement and fight for your interests.
Still, if you feel that you are prepared to take on the challenges of representing yourself, you are certainly within your rights to do so.
Is there any legal aid for those who can't afford?
In both Muslim and non-Muslim divorces, those who cannot afford legal representation can seek aid from the Government Legal Aid Department. However, the services provided here are at a subsidised rate (it’s not FOC) and you will need to meet the financial criteria set.
For the Legal Aid Department, you will need to pass a financial test, where you will be asked to input your income, liabilities and other expenses for the year. If your financial resources do not exceed RM50,000 per annum, you may qualify for legal aid. Not sure? You can take the test here.
Note that since the Legal Aid Department is backed up with divorces cases (45,754 in 2020), your case may take longer than if you were to engage a lawyer on your own.
Other options include legal aid services offered by the Bar Council and Muslims may reach out to Sisters in Islam for legal advice.
What about support?
There are two basic types of support – child support and spousal support. Typically, the husband (though not always) will be asked to provide support for the wife and children, if any, but the amount is not set in stone.
It will be determined through negotiations by the lawyers of both parties or through the courts. Criteria for deciding on the support amount rests on the current income of the support provider, monthly expenses, etc.
For Muslims, there is added support (alimony) payable by the husband to the wife. For instance, ‘Nafkah Iddah’ is paid to the wife for a ‘refrainment period’, typically three months following a divorce. ‘Nafkah Mut’ah’, on the other hand, is a lump sum that the husband pays to the wife – meant as a consolation if the divorce was filed by him (especially if without a valid reason).
Both support payments don't have a set figure in place and will be decided by the Shariah Court if the husband and wife are unable to settle on an amount.
Are there any other costs to consider?
In addition to the court, legal fees, and support, other expenses that you may not have thought about could spring up. For instance, if you have to make regular court appearances, do consider travel fees, childcare costs and possible lost wages or income from your business.
Final note: Divorces can cost as much as, and sometimes even more, than a wedding
While it is an unfortunate part of life, it is also a real possibility in most, if not all marriages. Thus, it’s important to consider all eventualities when you get into a marriage and that includes a costly and messy divorce.
One solution to lower divorce costs is a prenuptial agreement. This is a contract that states ownership/division of assets and monies upon divorce, among other agreements.
If you are about to get married, do consider getting one, as it may help limit the level of disagreement, as well as time and costs spent on a divorce. You can also consider applying for a loan. RHB offers fast approval and financing up to RM200,000. So what are you waiting for? Click here or the image below and check it out!
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.