How much does a divorce cost in Australia? [legal fees explained]
Legal matters can be expensive. Filing fees and the cost of legal representation add up. Parties can pay tens of thousands of dollars. Some divorces can even exceed $100,000. We’ll provide a rundown of the significant expenses clients face. JustFund may be able to help during this challenging time.
Key takeaways
Fees apply when filing for court orders and attending hearings.
Litigation incurs costly hourly rates for lawyers and expert witnesses.
Affidavits or replacement marriage certificates are an additional expense.
Fixed-fee consent orders fluctuate based on various factors.
Binding financial agreements can be expensive and come with advantages and disadvantages.
Some court fees can be waived due to demonstrated financial hardship.
How JustFund can help
Many people struggle with the costs of family law matters. There are options available. At JustFund, we’re offering an innovative solution to family legal fees.
JustFund is a team of experienced family lawyers. We want to ensure you receive the right support. Parties to a property settlement often struggle to pay legal fees. JustFund offers access to a line of credit. We started JustFund to fill a significant gap in legal financial support. We help those overlooked by traditional lenders.
Are you worried about a bad credit score? Have you lost your stable income? We’re not focused on that. Our expert family lawyers assess the circumstances of your case to determine your needs. You’ll get a flexible credit line to cover necessary legal fees.
Why is our funding important?
Going without legal representation is risky. But lawyer fees can be a burden. Women are often disproportionately affected. One issue we approach with great humility is family violence. The Australian Bureau of Statistics says one in six women has experienced intimate partner violence since the age of 15. This often impacts their financial stability. This is from KPMG’s report to the Department of Social Services in their report “The Cost of Violence Against Women and Their Children in Australia”:
KPMG estimates that the total cost of violence against women and their children in Australia is $22 billion.
The majority of that cost is borne by the victims. It represents the cost of mental health harm, lost economic opportunities, property damage, and more.
Effective support is beyond many clients. That’s why we needed to step in and provide a meaningful alternative.
Here’s a telling review on Trustpilot from Alyssa Anastasio entitled “Couldn’t have done it without JustFund!”:
I literally wouldn’t have been able to settle my divorce proceedings without JustFund. I was able to work with my lawyer in a less-stressful environment, which meant I could put all my energy into getting my divorce settled. They offered a very competitive interest rate, worked directly with the law firm, and were always so friendly and professional. I am so grateful that a company with such an amazing team exists. Thank you so much!
Traditional lenders miss the human element. Our focus is on your wellbeing and securing a positive future.
Do you need help financing your family law matters? Contact us today.
Court fees explained
There are various court filing fees associated with family law matters. The fees increase every year. As of 1 July 2024, some common fees clients face include the following:
Divorce application: $1100
Consent order application: $200
Application for annulment: $1560
Application for interim orders (Parenting and/or financial: $145
Initiating application for final orders (financial or parenting): $425
Initiating application for final orders (financial and parenting): $695
Initiating application for final and interim orders (financial or parenting): $570
Initiating application for final and interim orders (financial and parenting): $840
Initiating application response: $425
Issue a subpoena: $65
Litigation fees
If parties organising parenting matters or a property settlement can’t agree, they will need to go to court. The Federal Circuit and Family Court of Australia are split into two divisions.
Division 1 is a continuation of the Family Court, and Division 2 is a continuation of the Federal Circuit Court. Fees will differ depending on where the hearing takes place.
Court hearings attract the following fees:
Setting down for hearing fee (non-refundable): $770 (Div. 2), $1045 (Div. 1)
Daily hearing fee (for each hearing day excluding the first): $770 (Div. 2), $1045 (Div. 1)
Conciliation conference: $480 (Both)
Reduced fee eligibility
While the annulment and divorce filing fee cannot be waived entirely, you may be eligible for a reduced fee:
Reduced divorce filing fee: $365
Reduced annulment application fee: $520
Litigation will more likely cost $50,000 - $100,000
Litigation may be necessary if parties can’t agree on property settlement division or parenting matters. This will considerably increase legal costs. Litigation includes the parties attending mandatory mediation and a final hearing in court to receive final orders.
Most couples avoid litigation. The Australian Institute of Family Studies found that:
About 3% of separated parents use courts as their main pathway to making parenting arrangements (based on a sample of about 6000 separated parents about 18 months after separation). These are predominantly families affected by family violence, child safety concerns and other complex issues.
Outside of dangerous situations, couples can cooperate. 16% of couples require alternative dispute resolution. But this is a much better solution than court action.
Lawyers will charge an hourly rate for mediation sessions and attending court with clients. Rates depend on the lawyer’s experience. An hourly rate could be around $300 to $600. A partner at a large firm will charge a premium. A junior lawyer is more affordable. Who are you willing to trust with your divorce? That’s up to you. Clients may face about $3000 to $6000 in lawyer fees per day.
Clients cover court-related expenses, such as filing fees and legal fees. A lawyer may need to source expert witnesses. Clients could expect this to add roughly $5000 to $15,000. This significantly impacts the overall cost of a divorce.
Legal fees explained
While fees levied by the Family Court, including the filing fee, are set by law, legal fees can be more complex to calculate. Different firms will set their own fees.
We partner with over 600 family law firms across Australia and have assisted thousands of clients in financial difficulties. This has given us much insight into the fees most clients can expect.
Divorce application $1000 - $2000
How much does a divorce cost? Divorce applications can be sought by one party or jointly. This will affect how much a family lawyer charges. A joint divorce is generally the simplest to complete.
With no significant conflicts, joint applications usually cost approximately $1000 to $1500, plus the divorce filing fee. Complications that can bring additional costs may include the following, which can affect how much a divorce costs.
Marriage certificate
The lawyer may need to organise a replacement marriage certificate or a translation from an accredited translator for a foreign marriage certificate.
Affidavit
In some situations, additional information may need to be supplied to the Court through an affidavit. Drafting an affidavit to explain a ‘separation under one roof’ circumstance could add costs due to the extra time and legal work.
A sole application can have some added complications, which makes it more expensive. A sole applicant can pay about $1500 – $2500.
Added costs can be incurred if lawyers face challenges such as difficulties in serving a spouse who can’t be located.
If children are involved, mediation fees may also be required to resolve parenting arrangements, which can further increase costs involved, mediation fees and other legal expenses.
Consent orders $2000 - $3000
Consent orders are generally the most straightforward way of handling custody and financial matters. To that end, they are typically the most cost-effective. Most law firms will offer a fixed-fee structure for completing and filing consent orders and handling the divorce application, which can help answer the question of how much a family law matter will cost by providing more predictable expenses.
You can handle parenting and property settlement matters using the same application. This is usually a good idea. Firms usually offer a discounted rate if you do so. Seek legal advice from a family lawyer to address all matters appropriately and find potential cost savings.
Certain factors increase the cost of a consent order. Lawyers may add anywhere from $1000 to $4000. Some financial investments are more complicated. The cost will depend on the complexity and time the lawyer must spend.
Disclosure is important
Collecting financial information for a consent order takes time. Lawyers expect clients to have this organised beforehand, and managing this for a client will cost a lawyer time. What’s involved?
Valuing superannuation interests.
Obtaining property descriptions.
Accessing share portfolios.
Anything that occupies a lawyer’s time will cost the client.
Another benefit of a JustFund line of credit is access to our expert advice in this field.
Negotiations help
Parties must agree to an arrangement before making an application. Sometimes, they don’t. Lawyers may need to facilitate mediation, but it’s unlikely this will be included in a fixed-fee package.
Size of the property pool
If the property pool is particularly large and complex, the lawyer may need to dedicate more time to the application. This will lead to additional costs.
Alternative Dispute Resolution
The reason that divorce costs typically blow out is due to court attendance. In recent years, there has been a concerted push to encourage couples to reach an agreement outside of the Court. This includes avenues such as:
Mediation
Collaborative practice
Binding financial agreements
These options mean that you can negotiate a mutually beneficial outcome. A judge won’t make a decision that you may have little say in.
Binding financial agreement (BFA) $3000 - $10,000
Binding financial agreements are an alternative way for couples to settle their property division. BFAs have certain benefits and drawbacks depending on your financial circumstances.
Legal requirements
A BFA must meet certain criteria:
Each party must receive independent legal advice. A family lawyer advises how the agreement affects the client’s interests.
Both parties sign the agreement.
Neither party must act in an unconscionable way. This includes failing to fully disclose their finances or trying to intimidate or coerce the other party.
Advantages
Flexibility. BFA allows parties to create a private contract that governs property interests if their marriage or de facto relationship ends. By entering into a BFA, couples exclude certain provisions of the Family Law Act 1975 (Cth), which would otherwise enable the Court to make decisions on property matters upon relationship breakdown. This provides couples the freedom to reach agreements independently, without Court involvement. BFAs should be considered carefully and in depth legal advice should be obtained.
Timeline. Court orders can only be entered into after the couple has separated. BFAs can be arranged before, during, or after the marriage.
Disadvantages
Fairness. A BFA could potentially include terms that are disadvantageous to one party.
Expensive. BFAs are generally more expensive than consent orders.
Enforceability. A BFA is legally binding if drafted correctly. However, any small mistake can result in it being voided by the Court. Due to these difficulties, some law firms refuse to assist with BFAs. In contrast, a court order is very difficult to set aside.
Who should get a BFA?
BFAs are usually more beneficial when the parties are dividing a large property pool. Some clients have interests in complex assets such as trusts and business entities. A BFA provides the flexibility to protect a party’s interests in a tailored way.
Setting aside a BFA
A BFA can be challenged in court for various reasons. This makes them trickier to work with than a court order. Once the Court has made a financial order, it’s almost impossible to remove. Here are some of the ways a BFA can be voided.
Fraud. Entering an agreement to defraud a creditor will void the BFA.
Non-disclosure. If a party is found to have failed to disclose relevant assets, the agreement won’t be enforceable.
Duress. The Court is sensitive to agreements that are based on a power imbalance. One party may have been coerced into entering the agreement.
Change in circumstances. Circumstances can change. This may make it impractical to fulfil the terms of the agreement. If one party is primarily responsible for the care of a child, the agreement may be set aside if it results in undue hardship to the parent or child. Mere inconvenience isn’t sufficient.
Filing Fee exemption
Fee exemptions are available to eligible parties for certain court government filing fees. Parties are eligible in the following circumstances:
The primary cardholder of certain government concession cards. These include a health care card, pensioner concession card, Commonwealth seniors health card, or any other card certifying entitlement to a concession issued by Services Australia or the Department of Veterans’ Affairs.
You’ve been granted legal aid.
You are representing a child as an independent children’s lawyer.
You are receiving youth allowance, Austudy, or ABSTUDY payments.
You are under 18.
You are a prison inmate.
Financial hardship
You may not meet any of the above eligibility criteria. However, you could still apply for a fee exemption if you demonstrate financial hardship. The Court uses a three-part test to determine financial hardship.
The Court may consider child custody and legal costs when evaluating your application.
1. Income test
Your income must be below a certain threshold.
The allowable threshold is affected by the number of dependents the applicant has.
2. Assets test
This test considers an applicant’s liquid assets, cash or convertible shares or bonds.
The total value of these assets mustn’t exceed five times the filing fee payable or the reduced fee, if applicable.
3. Living expenses and liabilities test
The applicant’s fortnightly surplus income must be under certain thresholds, depending on the fees being waived or reduced.
Surplus income is a party’s net fortnightly income minus reasonable daily living expenses.
Conclusion
Going through the family law system can be an expensive ordeal. Between paying court costs, filing fees, and obtaining legal advice, clients can easily face thousands of dollars in fees. This can be a massive burden on people in a financially precarious position.
A fee exemption covers a small number of expenses. Most legal costs will remain, including legal advice. JustFund’s flexible payment solutions provide a crucial lifeline. We’re proud to offer assistance to clients when they need it the most.
If you need a helping hand, apply for funding today.
