A divorce can be costly if you hire a lawyer. And if it turns into a court battle, legal fees can get very expensive very quickly.

Do you need a lawyer?
Since lawyer fees are usually the biggest expense of a divorce, if you can do without a lawyer, or settle your divorce through mediation, you most definitely want to. But only do so if you're absolutely sure you don't need one.

Is your divorce a simple one, with both spouses fairly amicable and willing to reach agreement? Or will you need litigation? If you and your spouse are able to agree, chances are good you'll be able to handle your divorce yourselves. You simply split your common assets, file the correct papers and, in some states, go in front of a judge to tell him why you are divorcing. But rarely are divorces this simple. Splitting assets alone can be complicated. When you and your spouse can't agree on things together, instead of litigation, consider mediation or collaborative divorce, which helps the two of you work together with trained professionals to solve the problems of property division and custody arrangements. If you can't agree, litigation will become necessary. You definitely want a lawyer for any kind of litigation.

Even if you and your spouse are divorcing on very cordial terms, it can be hard to decide what's fair for both of you. A lawyer can be an advocate to help you make tough decisions.

Reducing legal fees
The biggest step in reducing legal fees is to do as much of the work as you can. Gather as much financial information as you can before you meet with an attorney. His or her hourly rate will be very expensive. You're paying that fee for legal expertise; you don't want to pay a lawyer to search through your finances. If you can, negotiate a fixed fee for your attorney. Otherwise, you can reduce fees by remaining actively involved in your case and following your lawyer's instructions carefully.

Try to settle small issues with your spouse without the help of a lawyer. Lots of tiny spats can lead to one gigantic legal bill. Save your money for the bigger battles that may take some greater legal muscle.

Stick to the tasks at hand with your lawyer. As you work with a lawyer, you'll probably build trust with that person and it might be tempting to "unload" some of your feelings on him or her. You really need to find a friend you can confide in - someone that isn't charging you by the hour.

Don't try to use a divorce settlement to punish an ex. It will end up causing more stress, more pain and much more money in legal fees. Remain diligent to make sure the settlement is fair to you, but if you insist on "sticking it to your spouse" your lawyers will end up sticking it to both of you.

Find a way to communicate with your spouse. There is a lot of emotional stress involved with a divorce. There is most likely some anger involved as well. But if you each use lawyers to relay all communications between you, the fees will add up quickly. If you need to, use alternative ways to communicate such as e-mail and fax. It takes some of the confrontational potential out of communicating by phone or in person.

Before a lawyer represents you, you will need to sign a written fee agreement. This is a legal document explaining the fees that your lawyer will charge. Make sure you understand this document and feel free to ask questions if you don't.

Information you will need
Gather your paperwork into one container, preferably mobile, that will help you be prepared and organized. Included should be:

• Tax returns for the past five years
• Retirement account records for both spouses
• You and your spouse's paycheck stubs to show current income and withholdings
• You and your spouse's employee benefit statements
• Copies of all insurance policies including life, health, homeowners and auto
• Current statements for all bank and brokerage accounts
• Mutual fund statements
• Copy of the deed or lease agreement on your home
• Statements on all outstanding loans, including your mortgage and credit cards
• Employer stock option plans
• Copies of wills and trusts
• Copies of powers of attorney
• Receipts for major purchases
• A copy of your estate plan
• Copies of birth certificates and marriage licenses

Depending on what is being contested, you may also want to keep records for the following: A prioritized list of assets you want to keep Your children's records, including how much time you spend with them, the activities you do together, and the expenses associated with their upbringing

Remember, if you have your finances in order, you won't have to pay a lawyer to discover this information.