The True Cost of Family Law Court Battles
As family lawyers in Calgary, we deal with many family disputes. Parenting and decision-making matters can often result in court appearances, especially if the decision to divorce is highly contested. When family law disputes turn ugly, another issue often becomes the forefront of the battle.
If you or anyone you know has been through the court system, you know that lawyer’s fees can be expensive. However, many clients don’t realize that the court can award costs against you for various reasons and require you to pay the other party. As the top divorce lawyers in Calgary, we want to ensure you know what to expect when it comes to the costs of family law court battles.
What Types of Costs Are Involved in Family Law Court Battles?
In Alberta family law, it’s essential for anyone involved in litigation to understand how legal costs are handled. While each party is generally responsible for their own legal expenses, courts can award costs at various points during a family law court battle. These cost awards serve several purposes and are influenced by the conduct of the parties and the nature of the case.
In family law, costs refer to the monies paid from one party to the other in a legal proceeding. Costs are not a right and are up to the judge or justice. They are awarded mainly to:
- Encourage Settlement: Parties are encouraged to settle disputes out of court. If a party rejects a reasonable settlement offer and ends up with a less favourable outcome, they may be ordered to pay part of the other side’s costs.
- Deter Frivolous or Vexatious Claims: Courts are mindful of their limited resources. If a claim or motion is brought in bad faith, such as out of spite or without merit, the judge may penalize the party responsible by awarding costs to the other side.
- Compensate Successful Defendants: When a party successfully defends against a claim, the court may order the losing party to cover some of their legal expenses.
The overarching goal is to promote fairness, reasonableness, and discourage unnecessary or abusive litigation.
While the Alberta Rules of Court contain cost suggestions, the judge or justice may decide not to follow them. If costs are awarded, the party must pay them.
Costs can be enforced under the Maintenance Enforcement Act for matters involving child or spousal support. The Maintenance Enforcement Program enforces support orders by taking action against those who refuse to pay—this can include suspending the payer’s driver’s license or deducting payments directly from their paycheck.
Types of Cost Awards
There are four main types of cost awards in family litigation:
- Party-to-Party Costs: These provide partial reimbursement of legal expenses and are the most commonly awarded.
- Solicitor-Client Costs: These cover 100% of the party’s legal expenses, but are rare. They are typically reserved for cases involving deception, misconduct, or other extreme circumstances.
- Security for Costs: This ensures that one party has the means to pay the other’s legal costs if they lose the case. This cost addresses financial imbalances between parties in family law court battles.
- Advance or Interim Costs: These may be granted to a party who cannot otherwise afford legal representation. The court will consider factors such as financial hardship, the merits of the case, and the overall fairness of the proceedings.
When Are Costs Awarded?
In most cases, costs are awarded at the end of a court appearance—after a morning chambers hearing, a domestic special, or a full trial. However, in family law court battles, costs can also be awarded at any point during the process if a party’s actions justify it.
Common situations where costs may be awarded early include:
- Missed Disclosure Deadlines: If one party fails to provide full financial disclosure on time, the other party can ask the court for an Interim Order for costs. The judge may then order the non-compliant party to pay a set amount to the other as a penalty.
- Rejected Settlement Offers: If one party makes a reasonable settlement offer that the other party refuses—and the final court outcome is less favourable than the offer—the judge may award costs to the party who made the offer. In some cases, the court may even order double costs to strongly encourage out-of-court settlements.
These reasons, and more, are why it’s essential to meet court deadlines and to seriously consider reasonable settlement options. Delays or refusals can come with financial consequences.
How Courts Determine Cost Awards
In Alberta family law, courts evaluate several important factors to determine if legal costs should be awarded and what amount is appropriate. The goal is to ensure fairness, encourage reasonable conduct, and distribute the financial burden of litigation appropriately. These considerations are typically reflected in a formal Costs Order.
Key Factors the Court Considers
- Success of the Party: Generally, costs are awarded to the party that succeeds in the case. This helps discourage unnecessary litigation and promotes timely resolution.
- Conduct of the Parties: A party may be penalized with a cost award against them if they act unreasonably during proceedings. This includes failing to follow court orders, delaying the process, or refusing to cooperate.
- Complexity of the Case: More complex family law court battles often require more time, expertise, and legal effort. The court may award higher costs to reflect the additional work involved.
- Actual Legal Costs Incurred: The court will consider the real expenses faced by each party, such as lawyer fees and related legal costs, when determining the award amount.
Judicial Discretion
Courts have broad discretion in awarding costs. Each decision is made based on the unique circumstances of the case, with the intent to serve justice and maintain balance between the parties.
By understanding these factors, individuals involved in family law disputes can better anticipate the potential financial outcomes of litigation.
Analysis of Serra v. Serra
In this case, the parties attended a 9-day trial and a one-day appeal. The husband was very successful in both the trial and the appeal. As such, his counsel sought to have costs awarded to him to cover all the legal fees and disbursements. The counsel seeking costs argues that the trial was prolonged by the wife’s irrational belief that the husband’s company was worth far more than he disclosed.
The trial Judge found no reason to believe the husband was hiding any company assets. The husband and his counsel had made numerous attempts to settle before the trial. The wife refused to agree to a settlement and did not provide any settlement terms of her own. The court issued the costs based on what it viewed as fair and reasonable. The husband was awarded $275,000 for the trial and $25,000 for the appeal.
The Cost Of Divorce In Calgary
When consulting with clients facing a family law court battle, one of the biggest questions we face is, “How much will this cost?” While we can provide a breakdown of our lawyer fees, the final cost of the divorce differs for each case and depends on many factors, such as:
- The complexity of the dispute,
- The willingness of all parties to adhere to deadlines and participate in the process, and
- Any conflicts that arise and the dispute resolution methods chosen to address them.
A divorce that ends up in court is typically more costly. One way couples can reduce the cost of divorce is to work out agreements together to minimize conflict and prevent back-and-forth communication between lawyers.
Beyond monetary costs, going through a divorce eats up time, energy, and emotional and mental capacity—especially when children are involved. Couples may need to take time off work, meet with legal counsel, fill out paperwork, and organize documents, among other things.
Your Partners in Family Law Court Battles
The actual cost of family law court battles is complex, and as family lawyers, we will work hard to advocate for our clients’ best interests.
At Jones Divorce & Family Law, we aim to minimize your divorce’s emotional and financial strain. Our firm was created for clients who want meaningful access to justice through quality, binding resolutions—with the option to proceed with or without lawyers.
Contact Jones Divorce & Family Law to book your consultation with our Calgary family lawyers.
The content provided in the blog posts of Jones Divorce & Family Law is general information and should not be considered legal advice. Please contact a lawyer for legal advice tailored to your specific situation. All articles are current as of their original publication date.
