Legal fees in family law -excessive or not

Many clients are rightly concerned about their legal fees in family law matters.

If a matter proceeds to a hearing, the Court has a discretion to order that one party (the losing party) pay the other party (the successful party) the successful party’s legal costs. The successful party is unlikely to be awarded 100% of his/her legal costs. If the matter does not proceed to a hearing, then unless otherwise agreed to by the parties, each party will pay his/her own legal fees.

A client has the right to have their legal fees assessed. An independent costs assessor will determine if the fees charged by the lawyer are reasonable or unreasonable and what amount should be paid by the client.

When a client is provided with a Tax Invoice, the client may enter into negotiations with his/her lawyer to reduce the amount payable. If the negotiations fail, the client can seek a costs assessment.

If the client does not pay the legal fees, his/her lawyer can file a statement of claim seeking the payment of the legal fees.

If the client has been provided with some amount from his/her ex-partner under Orders from the Court, the lawyer may seek an Order from the Court that the amount paid be held by the Court or in a trust account until the costs are assessed or the amount is paid by the client.

In a recent case, the client, the ex-wife, was to be paid $100,000.00 by her ex-husband under consent orders to settle the property dispute. The client had not paid her lawyer’s fees of $165,835.82. The client said that the amount of $165,835.82 for legal fees was excessive. The client was willing to pay $40,000 to her lawyers.

The Court ordered that the amount to be paid by the ex-husband to the client/ex-wife was to be paid to the ex-wife’s lawyers. The ex-wife’s lawyers were ordered to retain the amount in their trust account until the dispute between them and the client/ex-wife was resolved after a costs assessment or agreement. The Court also ordered that if the client/ex-wife had received any money from her ex-husband under the consent orders she was not to spend the amount until the dispute between them and the client/ex-wife was resolved after a costs assessment or agreement.

In another matter, a legal firm was ordered to refund their client approximately $700,000 which the client had paid to them before she sought a costs assessment.

If you have any questions on legal fees, send an email to Kathy Chase at pittwaterfamilylawyers@gmail.com or info@pittwaterfamilylawyers.com.au or telephone her on (02) 9918 6565 or 0418 285 307. http://www.pittwaterfamilylawyers.com.au