Mediation Cost: Mediation Costs Who Pays?
Mediation costs may vary depending on the particular services. Some mediation services may charge by the hour and others by the session. Some may offer a fixed fee and others may apply sliding scales.
If you seek legal aid, the cost may be more than what you are expecting.
Regardless of how much legal aid mediation cost, both parties share will share the cost of mediation.
In cases of family mediation, who will pay for the mediation will depend on certain circumstances, but most mediation clients pay the fees equally.
Benefits and Drawbacks of Sharing Costs Mediation
The primary benefit of sharing costs mediation is that both parties can buy into the process. Both parties have their interests to make the mediation work. Participants take ownership of the mediation process.
The setback though is that it can be hard for the other party to meet costs mediation than the other party. This means that any of the two parties will need to borrow money, save up for meetings or wait until they have been paid.
One Party Pays Costs Mediation
It can be tempting for one party to offer to pay the entire legal aid mediation cost. There are two reasons why one party decided to offer to pay the whole mediation cost; one is that they want to give the other participant with an incentive for coming into the mediation because they know the opposite party is less able to pay for it.
One parent probably wants to make changes in the parenting agreement, and the other parent is contented enough with the status quo.
The benefit of one party shouldering the legal aid mediation cost is that the process can go ahead without the other party needing to look for money.
The setback, is, however, is that you the parent that has to pay the whole cost of the process may feel that the outcome should be on their favor.
Also, the parent who does not pay for the mediation process may feel indebted to the other parent either financially or in other matters.
Both Parties Pays Proportion to Their Capability to Pay
This scheme is where each party pays a share of cost mediations to proportionate what is available in their disposable income. The benefit is that this can help to even things out financially in between the mediating parties.
The disadvantage though is similar to where one party pays for the whole mediation cost.
The party that pays less proportion of the costs mediation may be indebted to the other party.
Costs Mediation Paid Out Of Joint Assets
Costs mediation paid out of joint assets can be possible for financial cases. Both parties or the other party may pay for the mediation cost as the payment comes due. Once the mediation has reached an agreement, they will be reimbursed out of their assets.
The good thing about this is that both parties know from the start how they will pay for the costs of mediation.
But the setback is that that the fees for the mediation and mediator will be taken out from their joint assets that will reduce the settlement amount they will get.
In some cases, some legal aid mediation agencies may pay for costs mediation if both parties qualify for it. Legal aid mediation can be available to both parties if each of them needs to be assessed separately. Do you need a MIAM click here