Understanding Legal Costs in Family Law Matters: What to Expect and How to Manage Them
The family law system aims to protect the parties involved in a family law dispute from incurring unreasonable costs. It mandates that legal representatives maintain transparency with both their clients and opposing parties about rising legal expenses. Legal representatives must provide ongoing estimates of future costs to their clients as their case advances.
Initial Costs Disclosure Obligations
Australian family lawyers have a legal obligation to disclose to their clients how the legal fees they will charge will be calculated and to provide estimates of costs depending on the stage a matter reaches. Costs disclosure obligations require a written costs agreement outlining:
- their fees,
- the scope of services, and
- any additional costs that may arise.
Clients should receive this information before engaging the lawyer’s services, allowing for transparency and informed decision-making regarding legal representation.
Ongoing Costs Disclosure Requirements
After Court proceeding are commenced, each lawyer is required before each court event, to file and serve to their client and to the opposing party and solicitor a “Costs Notice”.
This Notice lists:
- the legal costs incurred to date and
- the estimated costs of proceedings to a final hearing.7
When an offer of settlement is made, lawyers must also disclose to their clients the costs to date and estimated costs to complete the case.8
These transparency requirements provide an ongoing reminder of the increasing legal costs and often serve as a reality check and an incentive both on the party making the offer and the party considering the offer for them to try to resolve their dispute.
What to Expect in Legal Costs
Direct Negotiation
The amount spent on legal costs in a family law matter depends largely on the stage that the matter reaches before it is settled or determined. For example, matters that are settled early via direct negotiation, without any formal mediation process, may cost each party between $5000 and $8000. This would include the cost of drafting legal documents to formalise legally the agreed arrangements.
Mediation
If settlement is reached after a full day of mediation involving an accredited mediator, each party’s costs for the day may amount to $15,000 to $20,000. The costs of subsequently formalising the agreement legally would be additional.
Matter goes to Court
If the matter is not settled out of court and must proceed to a final trial, the total legal costs and disbursements will be much higher for each of the parties. This is due to additional legal work required in preparing and presenting the case in Court and the additional costs incurred in the process.
The total costs of a matter that proceeds to a final hearing could reach as high as $100,000 to $200,000 including the solicitors’ fees, experts’ fees, barristers’ fees, and all other disbursements related to the matter.
Strategies for Managing Legal Costs
There are various strategies that a party involved in a family law matter may utilise together with his/ her lawyer to manage the costs surrounding their family law matter.
At Turini McKean Law, we encourage clients to:
- Communicate with us
- Maintain open communication with us about the increasing costs relating to their case.
- Discuss their budget with us in order that we may aim to tailor our services and aim to find cost-effective solutions.
- Utilise Compulsory Alternative Dispute Resolution(ADR)
Take advantage of compulsory ADR processes. Engaging in mediation can be a more cost-effective alternative to litigation, allowing both parties to work together with a neutral mediator to reach an agreement, often resulting in lower legal fees and a quicker resolution.[1]
Tips to aim to settle well and the “Case Plan”
In our article How to settle family law matters “well” outside court, we list some “tips” about how a party may aim to resolve his/her family law matter well and the need to devise a “Case Plan” with the solicitor for the start. [2]
At Turini McKean Law we are committed to maintain our clients informed regarding the legal costs involving their matter and we encourage our client to maintain a constant communication with us about their costs, future likely estimates and the costs implications of their case as the matter progresses.
If you would like any further information regarding costs and your family law case, please contact us at:
Email: [email protected] or
Phone: +61 2 61983384
Further Reading:
Legal costs in family law matters – answers to frequently asked questions about legal costs in family law matters in the Federal Circuit and Family Court of Australia (the Court).
Family law fees – Fees are set by Federal Government Regulations – Family Law (Fees) Regulations 2022. The current fees are contained within the gazetted Annual federal courts and tribunals fee increases from 1 July 2024.
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[1] See the following articles in our website:
https://turinimckeanlaw.com.au/how-to-settle-family-law-matters-well-outside-court/
and
https://turinimckeanlaw.com.au/settling-family-law-matters-thinking-outside-the-box/
[2] see at: https://turinimckeanlaw.com.au/how-to-settle-family-law-matters-well-outside-court/
