How much does a divorce cost in Australia? [legal fees explained]

Q: How much does a divorce cost?

How much does a divorce cost? Legal matters can be complex and overwhelming and come with a myriad of different expenses. From the divorce filing fee to the cost of legal representation, parties can end up paying tens of thousands of dollars or even more.

In this article, we provide a rundown of the major expenses clients face and how JustFund can help.

How JustFund can help

Many people struggle with the costs involved with family law matters. It’s important to know what options are available. At JustFund, we’re offering an innovative solution to family legal fees. Many people suffer financially after a divorce.

This should not prevent you from accessing effective legal representation. JustFund is a team of experienced family lawyers, first and foremost. Our main concern is ensuring you receive the necessary support in your time of need.

JustFund gives people who are negotiating a property settlement but struggling to pay legal fees each month the chance to access a line of credit. We started JustFund because we saw a significant gap in legal financial support. Our services aim to help those who traditional loan providers, such as banks and loan agencies, too often overlook.

We don’t require applicants to show a positive credit score or a stable income. Our expert family lawyers assess the circumstances of your case to determine your needs, including covering essential expenses such as the filing fee.

If you need help financing your family law matters, contact us today.

Court fees

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 litigate their issue in 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

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.

Lawyers, including a divorce lawyer, will charge an hourly rate for mediation sessions and attending court with clients. Depending on their experience, an hourly rate could be around $300 to $600. Clients may face about $3000 to $6000 in lawyer fees per day.

Clients must also cover court related expenses, such as the filing fee, in addition to legal fees. In certain circumstances, a lawyer may need to source expert witnesses, such as psychologists or valuation experts. Clients could expect this to add roughly $5000 to $15,000, which 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 500 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.

Assuming there are no significant conflicts to overcome, 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

Additional information may need to be supplied to the Court through an affidavit in some situations. This could include gathering evidence and drafting an affidavit to explain a ‘separation under one roof’ circumstance, which can also influence divorce costs due to the extra time and legal work involved.

A sole application can have some added complications. As a result, a sole application will be 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 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.

Parenting and property settlement matters can be handled with the same application. Firms will usually offer a discounted rate if you choose to handle both at the same time. It is important to seek legal advice from a family lawyer to ensure all matters are appropriately addressed and to take advantage of potential cost savings.

Certain caveats can increase the cost of a consent order. These caveats can add anywhere from $1000 to $4000 to the cost, depending on the complexity and length of time the lawyer must spend.

Additionally, while some clients may be eligible for reduced filing fees, it’s essential to factor in these costs when considering the total expense and determining how much it will cost in Australia overall.

Divorce lawyers may also charge for their time spent on the case, and financial investments, such as property or shared assets, can further complicate and increase the overall costs involved.

Disclosure

A fixed-fee consent order may assume that clients have already compiled the necessary financial information for a property settlement. If they haven’t, the lawyer may need to collect property descriptions, gather information about shareholdings, obtain valuations of superannuation interests, and more. This takes up a lot of precious time, and clients should also be prepared to cover additional expenses, such as the filing fee.

Negotiations

A lawyer may expect that the parties have already agreed on how to divide property settlement or organise parenting arrangements. If the lawyer has to facilitate additional negotiations or provide further legal representation during this process, there could be added costs.

Size of the property pool

If the property pool being divided is particularly large and complex, the lawyer may need to dedicate more time to preparing the application. This will lead to additional costs, which can significantly impact your costs.

Alternative Dispute Resolution

The reason that divorce costs typically blow out is due to the expenses of attending Court. In recent years, there has been a concerted

push to encourage couples to reach agreement outside of the Court, offering avenues such as:

• mediation
• collaborative practice
• binding financial agreements

These options mean that you can negotiate a mutually beneficial outcome, instead of a judge making a decision that you may have little say in.

Filing Fee exemption

Fee exemptions are available to eligible parties for certain court government filing fee. Parties are eligible in the following circumstances:

The primary cardholder of certain government concession cards, including 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

If you don’t meet any of the above eligibility criteria, you may still be able to apply for a fee exemption if you can demonstrate financial hardship. The Court uses a three-part test to determine financial hardship.

Factors such as a child custody arrangement and legal costs can also influence the financial burden, which the Court may consider 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, which depend on the fees being waived or reduced fee.

Surplus income is a party’s net fortnightly income minus reasonable daily living expenses.

Conclusion

Going through the family law system is an expensive ordeal. Between paying court costs, filing fees, and obtaining legal advice, clients can easily face tens of thousands of dollars in fees.This can be a massive burden on people in a financially precarious position.

A fee exemption can cover a small number of expenses. However, most legal costs will remain, including seeking legal advice. JustFund’s flexible payment solutions provide a crucial and comprehensive lifeline.