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Why Starting Your Own Legal Services and Mediation Business Now is a Smart Move

Sep 20, 2024 | Become a Provider, Divorce start up business, Legal Services Jobs

In today’s evolving world, the landscape of family law, divorce services, and mediation is undergoing significant changes, driven by economic pressures, shifting societal norms, and emerging trends in dispute resolution. If you’ve been contemplating starting your own legal services and/or mediation business, the time has never been more opportune. With the potential for tax benefits, a quieter holiday season to focus on transition, and the chance for a strategic January 1st launch, getting started now sets the foundation for long-term success.

Here’s why launching your own divorce services and mediation business is not only a smart move but also a potentially lucrative opportunity, especially if you position yourself strategically to benefit from market trends and global economic events.

Market Trends Supporting the Growth of Divorce Services and Mediation


1. Increasing Divorce Rates and Demand for Amicable Resolutions

While it may seem that divorce rates have plateaued in some areas, data shows a resurgence of divorce cases post-pandemic. Many couples who initially delayed divorces due to economic instability during the pandemic are now seeking to finalize their separations. In fact, after the initial COVID-19 lockdowns, there was a notable increase in divorce filings in several regions, including the U.S. and parts of Europe. The need for amicable solutions like mediation, where couples can avoid the contentious and expensive courtroom battles, has grown in response.

Divorce mediation offers a streamlined, cost-effective, and often emotionally less traumatic alternative to litigation. Couples increasingly see mediation as a way to maintain control over their decisions and ensure that both parties walk away with a fair settlement. This trend is expected to continue as families look for solutions that minimize conflict and protect their long-term well-being, particularly in co-parenting situations.

2. Rising Awareness of Mental Health and Emotional Well-Being

Another factor driving demand for mediation and other non-litigation divorce services is the rising awareness of mental health and the desire to mitigate the emotional toll of a legal separation. As society becomes more conscious of emotional well-being, many couples seek alternatives that promote healing rather than hostility. Divorce mediation allows for a more civil, communicative process, where both parties are encouraged to work together rather than against each other.

This heightened awareness of mental health has led to a boom in services like therapy, counseling, and mediation during the divorce process, positioning legal professionals and mediators as essential players in this holistic support system.

3. Remote and Virtual Mediation

The global shift toward remote services in the wake of the pandemic has normalized virtual interactions in the legal field. Remote mediation has become a viable, even preferable option for many divorcing couples. Virtual mediation allows flexibility, cost savings, and convenience for clients who can participate from the comfort of their homes.

This market shift means legal professionals starting a divorce services business now can capitalize on the increased demand for virtual and remote services, reducing overhead costs like office space and allowing them to serve clients nationwide. This trend isn’t going away—in fact, it’s poised to grow as more people become comfortable with technology and appreciate the convenience it offers.

4. Economic Uncertainty and Financial Pressure

With global economic fluctuations, inflation, and ongoing uncertainties, individuals are becoming more financially cautious. High legal fees and long litigation processes are increasingly being shunned in favor of affordable alternatives like mediation. Couples facing financial strain are more likely to turn to mediators to resolve their divorces quickly, with minimal cost. Mediation, compared to traditional divorce litigation, offers an affordable way to navigate the complexities of divorce while keeping finances in check.

Furthermore, as economic pressures mount, many people are also focusing on preserving their assets and ensuring a fair division of property, retirement accounts, and custody. Mediators can step in to help couples negotiate these issues in a cost-effective manner, further increasing the demand for skilled mediation professionals.

The Strategic Timing of a January 1st Launch


1. Tax Benefits of Starting Now

Starting your legal services business before the end of the calendar year offers key tax benefits. Any business expenses incurred in setting up the company—whether it’s purchasing equipment, renting an office, or investing in marketing—can be deducted from your 2024 taxes, even if your business doesn’t open its doors until January 1st, 2025. This allows you to claim those deductions and potentially reduce your taxable income for the current year.

By acting now, you can also position yourself to take advantage of year-end promotions or sales for necessary services like web hosting, office supplies, or legal software. Many companies offer discounts and promotions in the final months of the year, enabling you to set up your business infrastructure at a reduced cost.

2. Holiday Lull: Time to Transition and Prepare

The holiday season is typically a slower time in many industries, especially in legal services. While family law professionals may see a spike in January filings, the period between late November and December tends to be quieter. This creates an ideal window for making the mental and logistical transition into business ownership.

Use this slower period to finalize your business plan, hone your marketing strategy, and build out your website and social media presence. The holidays also provide a natural break to reflect on your goals, create a roadmap for success, and ensure that your grand opening in the New Year goes off without a hitch.

3. Starting Fresh with a New Year Launch

A January 1st launch positions your business to capitalize on the post-holiday surge in divorce inquiries. January is known as “divorce month” due to the sharp increase in filings after the holidays. Many couples hold off on initiating divorce proceedings during the holiday season for the sake of family unity, but by the time the New Year rolls around, they’re ready to move forward.

Starting your business at the beginning of the year means you’re ready to capture this wave of potential clients who are looking for legal guidance and mediation services. A strategic grand opening in January signals that your business is prepared to help clients start the new year with the solutions they need.

The Economic Climate and Predictions for Legal Services


1. A Recession-Proof Industry

One of the reasons divorce and mediation services are considered a stable, recession-proof industry is because of the nature of the demand. Divorce isn’t a luxury service—it’s a necessity for many couples, regardless of the broader economic climate. Whether in times of economic prosperity or downturns, people will continue to seek divorce services, making this a resilient field for legal professionals.

Even during the Great Recession of 2008, divorce rates remained steady, and the need for mediation and legal services continued. In fact, economic instability can increase the likelihood of divorce, as financial stress can exacerbate marital problems. As such, the legal services industry, particularly family law and mediation, tends to weather economic storms better than other sectors.

2. Positioning for Future Growth

The family law and mediation markets are expected to grow in the coming years, particularly as alternative dispute resolution (ADR) methods like mediation gain prominence. Mediation is increasingly seen as a viable alternative to litigation, not only in family law but also in business and civil disputes.

Starting your own mediation business now positions you to ride this wave of growth as more people seek out these services. Additionally, as courts become increasingly clogged with backlogs due to pandemic-related delays, clients are seeking quicker and more efficient ways to resolve their legal issues. Mediation fills that gap, offering a faster resolution with fewer barriers to entry.

3. Economic Uncertainty Drives Entrepreneurial Opportunities

Amidst ongoing economic uncertainty, more professionals are choosing to take control of their careers by starting their own businesses. Owning a legal services or mediation practice gives you the freedom to set your own rates, choose your clients, and tailor your services to meet the growing demand for flexible, affordable solutions.

Additionally, current trends show a rise in freelance and gig-economy professionals. With more people leaving traditional employment to start their own ventures, entrepreneurship in legal services has become a more attractive and accessible option.

Conclusion: Seize the Opportunity Now

Owning your own legal services business specializing in divorce mediation is not just a smart move—it’s a strategic one given the current economic, legal, and social landscape. With increasing demand for amicable divorce solutions, the rise of remote mediation, and the potential tax benefits of starting now, you can set yourself up for a successful launch in 2025.

By acting during the slower holiday months, you’ll have the time and mental space to transition smoothly into business ownership and prepare for a strong January 1st debut. With a well-thought-out plan, you can capture the wave of divorce inquiries that typically come in the New Year, ensuring that your business starts with momentum and profitability.

If you’re ready to take the next step and launch your own divorce services business, you don’t have to do it alone. The Divorce With Dignity Network offers an out-of-the-box solution designed specifically for professionals like you who are looking to start a meaningful and successful divorce services business. With our comprehensive support system, you’ll get everything you need to hit the ground running—from business setup and marketing assistance to ongoing operational guidance. Plus, with our flexible subscription model, you can grow your business at your own pace without a long-term commitment, making it easier to focus on what really matters: helping clients navigate their divorces with dignity and grace.

There’s no better time than now to get started and be fully prepared for a grand launch in the new year. Reach out to us today, and let’s begin building something incredible together!

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Disclaimer: The information provided in this article is for general informational purposes only and does not constitute professional advice. The author is not a tax professional, attorney, or financial advisor, and the content should not be considered a substitute for professional guidance. Always consult with a qualified tax professional, attorney, or financial advisor before making decisions regarding legal matters, business ownership, tax strategies, or financial planning. The author disclaims any liability for actions taken or not taken based on the information provided in this article.

Cindy

Cindy Elwell
Founder, Divorce With Dignity
 Network

Our Founder started DWD, after years in the legal field, because she wanted to help people going through a divorce to do it peacefully – the way she did – and provide a safe place for them to do so. In 1995, she opened the first DWDignity office in Alameda, California and since then, she (along with her expanding network of Providers) has helped thousands of people obtain an amicable divorce.