Litigate or Mediate? The Financial Reality Most People Ignore Until It's Too Late
- Shannon Davis
- Apr 9
- 2 min read
When a legal dispute arises—whether it’s a divorce, a business disagreement, or a family conflict—many people assume the only option is to "lawyer up" and go to court. But especially during times of economic uncertainty, that path can be the most financially draining one.
Mediation offers a smarter, often more cost-effective alternative. And in a strained economy, making a cost-conscious choice can save your sanity—and your savings.
The Real Costs of Litigation vs. Mediation
Let’s break down a common scenario:
Business Dispute
Litigation: $20,000 to $100,000+ in legal fees, often lasting 12–24 months or more.
Mediation: $3,000 to $7,000 total, usually resolved in under 90 days.
Contested Divorce
Litigation: $15,000 to $50,000+ per party, depending on complexity and trial.
Mediation: $3,000 to $10,000 combined, finalized much faster.
Custody Disputes
Litigation: $10,000 to $30,000+, often resulting in emotionally charged court battles.
Mediation: $2,000 to $6,000, with parents collaborating on a parenting plan.
These numbers don’t even account for indirect costs:
Time off work
Emotional toll on children
Loss of relationships or business goodwill
Delays in final resolution that impact financial planning
Benefits of Mediation Beyond the Bottom Line
Confidentiality: Mediation sessions are private, unlike court records, which are public.
Control: You and the other party decide the outcome—not a judge unfamiliar with your life or business.
Speed: Mediation can resolve issues in a matter of weeks, not years.
Preservation of Relationships: Especially important in family matters or ongoing business partnerships.
When to Consider Mediation
You want to preserve assets and minimize legal expenses
There is a possibility of working toward mutual agreement
You want more control over timelines and terms
You prefer a less adversarial, more collaborative process
Litigation has its place—but it shouldn’t be your first stop. Mediation offers a path to resolution that’s faster, more affordable, and often more empowering.
Curious whether mediation is right for your situation? Contact Shannon Davis Legal for a case evaluation.
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