Divorce is a significant life event that not only takes an emotional toll but can also have a substantial financial impact. Understanding the costs associated with divorce in Australia is essential for anyone considering ending their marriage. In this article, we will provide a comprehensive breakdown of the financial aspects of divorce, including court fees and legal expenses, and offer strategies for managing costs with cost-effective solutions.

It is important to keep in mind that divorce in Australia occurs separately from any determination of property or parenting matters. You do not need to have permanently settled the separation of property with your spouse; however, the Court will need to ensure that arrangements are in place to care for any children (whether formal by way of a court order or informal by agreement). Therefore, this article does not include a breakdown of the costs of determining your property separation or parenting arrangements following separation.

Court Fees

When initiating the divorce process in Australia, there is a court fee that must be paid. As of 2023, the current fee for filing a divorce application is $1,060. However, these fees are subject to change, so it’s important to check the most up-to-date information on the Family Court of Australia or the Federal Circuit Court of Australia websites.

There is the ability to seek the reduced fee for the application, which is currently $350; however, you either need to meet the pre-existing general criteria or submit an Application claiming financial hardship.

To be eligible for the general fee reduction, one of the following needs to apply to you;

• Have a government concessions card,
• Have a grant of Legal Aid,
• Be in receipt of youth allowance, Austudy or ABSTUDY payments,
• Be under 18 years old, or
• Be in prison or detained in a public institution.

If the above do not apply to you, however, meeting the full cost of the divorce application will cause you financial hardship, you should complete the  Application for reduction of payment of divorce or decree of nullity – financial hardship form and provide details about your income, daily living expenses, current assets, and current liabilities. You should collate any evidence such as payslips, bank statements, or bills to include in your application to ensure its approval.

Once completed, your Application for financial hardship should be filed at the same time as your Application for Divorce. Initially, you will need to pay the reduced fee; however, if your application for hardship is unsuccessful, you will be contacted to pay the remaining amount of the full fee.

Legal Expenses

Legal representation is not mandatory for divorce proceedings, but many individuals choose to hire a family lawyer to navigate the complexities of the process and ensure their rights are protected.

Typically, lawyers charge an hourly rate for their services, which can range from $200 to $700 or more per hour. You can choose to engage a top family lawyer to assist you in the divorce application process, which can take a lot of the stress out of the equation, particularly if you are having trouble communicating with your spouse.

Your lawyer can complete the application for you, ensuring all the relevant information is provided to the Court, making sure that you have complied with all the rules of serving the application on your spouse. If a court appearance is necessary, your lawyer can appear on your behalf so that any outstanding issues may be addressed on the day of the hearing.

As lawyers will charge hourly for the time that they work on your matter, the legal expenses you can expect will heavily depend on the complexity of your case and whether any additional issues may arise when complying with the requirements for divorce.

Strategies for Managing Costs

Some of the best ways to keep costs down when seeking a divorce are;

• Joint applications for divorce: If you apply for divorce jointly with your former spouse, you can save both time and money. This is because a joint application removes the requirement of serving the application on your former spouse, and you can agree to meet the filing fee equally.
• Uncontested divorce: If you are able to obtain your spouse’s view on the divorce before filing, even if the application is not made jointly, you can be aware of whether your spouse intends to contest the divorce. The option is available to your former spouse to oppose the divorce order being made, and while their consent is not required, a hearing where you both are required to attend will need to occur. It is advisable to engage a family lawyer if the divorce application is contested to have the best chance of being successful; however, this will result in you incurring the cost of having a lawyer present at the hearing. In most circumstances, if the divorce is not contested, the hearing can occur without either of you needing to be present.
• Fixed-Fee Services: Some law firms offer fixed-fee packages for divorce cases, providing transparency and predictability in terms of costs. This can be particularly helpful for individuals who want to manage their budget effectively during the divorce process.
• Self-Representation: While not recommended for complex cases, individuals with straightforward divorce matters may choose to represent themselves. This option can save on legal fees; however, it is crucial to research and understand the legal requirements and procedures involved.

Conclusion

While divorce in Australia comes with financial costs, there are strategies to manage and minimise expenses. Seeking divorce jointly and obtaining legal advice when appropriate can contribute to a smoother and more financially manageable divorce process.

To have us assist you in filing your divorce application, feel free to contact us at (02) 8379 1892 or by email at info@barkerevans.com.au.