Family law matters can be expensive, and the cost of divorce is no different. You have various things to consider when getting divorced beyond the application for divorce itself. Court fees are governed by Family Law (Fees) Regulations 2022.
The divorce rates in Australia is indexed to inflation and increases yearly. Let’s explain what you can expect to pay for a divorce in 2024.
How much is the divorce cost in Australia? (Filing Fee)
A party seeking a divorce must apply with the Federal Circuit and Family Court of Australia. How much does a divorce cost? The rate for filing a divorce increased by the following:
- 1 July 2022: $1060
- 1 July 2023: $1100
Decree of Nullity
A civil partnership must satisfy specific criteria to be considered valid, which are:
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Consent. Both parties must give their genuine and fully informed consent to the civil partnership. This means they understand what civil partnership means and freely choose to marry.
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Age Requirement. Both parties must be at least 18 years old. If one party is aged 16 or 17, an order is required along with parental consent.
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Not Already Married. Neither party can be lawfully married to someone else at the time of the civil partnership.
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Not Closely Related. The parties must not be closely related by blood. Close relatives such as siblings or parent/child cannot legally marry.
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Understanding of Marriage. Both parties must understand the nature of the civil partnership ceremony and what it signifies.
If your civil partnership doesn’t meet all these criteria, it isn’t valid and may be annulled. The rate of filing a decree as to Nullity increased by the following:
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1 July 2022: $1505
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1 July 2023: $1560
Download our FREE Divorce Checklist for a more detailed guide on the next steps.
What does it cost to produce a marriage certificate?
You will need your certificate of marriage to proceed with a divorce application. How much does a divorce cost? If you have misplaced your certificate of civil partnership, you can apply for a replacement for the following expense:
Official certificate of civil partnership (standard postage fees included): $54.40
Urgent application: $32.20
What are the costs associated with parenting and property arrangements?
Divorcing parties often need to consider how they will handle child support and property. Organizing these matters in a legally binding way will attract costs that one partner may need to pay. To potentially lower these costs, exploring options for a rate reduction or pursuing an online application for divorce may be beneficial.
Consent orders
Consent orders can be used to finalize financial, parenting, and living arrangements. The costs associated with consent orders are the following:
1 July 2022: $195
1 July 2023: $200
What are court order filing fees?
At times, a party to a divorce order feels the need to apply for orders without the consent of their former spouse. The orders can be granted on an interim or final basis. Interim orders can be critical for parties who require immediate action before final orders are determined. Additionally, a court filing fee is generally required when submitting such applications, which can vary depending on the nature of the orders sought.
Parties may wish to apply for interim orders for various reasons, including the following. Additionally, when considering application for divorce, parties should inquire about discounted costs and payment plans to manage the costs of legal proceedings, including the following:
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Initiating Application (Parenting OR Financial, Final only): $425
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Initiating Application (Parenting OR Financial, Final AND Interim): $570
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Initiating application (Parenting AND Financial, Final only): $695
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Initiating Application (Parenting AND Financial, Final AND Interim): $840
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Interim order application/Application in a case (Parenting AND/OR Financial): $145
Fee exemption
In certain circumstances, you may be eligible for a reduced rate or waiver when making an application for dispute resolution. The Court makes provisions for people who satisfy specific criteria. People holding certain government concession cards may be exempted from some costs. You may be exempted from payment if you are:
The primary cardholder (not a dependant of a primary cardholder) of a health care card, pensioner concession card or Commonwealth seniors health card.
Granted legal aid for the proceedings the rate is for.
Receiving youth allowance, Austudy or ABSTUDY payments.
Under the age of 18.
An inmate of a prison or otherwise legally detained in a public institution.
If you don’t satisfy the above criteria, you may still be eligible for a waiver if you demonstrate financial hardship. They assess financial difficulty through three tests, which may also consider care arrangements impacting your financial situation.
Financial hardship tests
The Court determines financial hardship through a series of tests. These tests are:
The income test
The assets test
The daily living expenses and liabilities test.
Income test
The income test is applied to your gross income. The test considers income you may receive from numerous sources, including:
Employment income – wages, salary, and self-employment income.
Employer provided fringe benefits.
Rental income.
Paid Parental Leave.
Lump sum payments such as redundancy, leave or termination payments.
Foreign income.
Income from financial investments such as bank accounts, managed investments and shares.
The party’s number of dependants affects the income allowable under this test. The table below shows how the number of dependants affects the income permitted by this test.
Assets test
The assets test considers your cash, convertible shares or bonds, and investment property. To satisfy this test, the value of these liquid assets must not exceed five times the fee in question. For example, if a party is applying for a consent order, the value of their liquid assets cannot exceed $975 (5 x $195).
Daily living expenses and liabilities test
You may still be required to pay the full rate if your surplus fortnightly income exceeds a certain level. Your surplus income is considered your income after covering all reasonable daily living expenses. These expenses can include things like Austudy payments, process server expenses, and eligibility for a discounted rate:
Food
Rent or home mortgage payments
Credit card debts
Other loan or lease repayments
Electricity
Phone(s)
The costs of running a motor car.
The allowable surplus income under this test with respect to relevant expenses is the following:
Filing expenses (maximum allowable surplus income)
Application for consent orders: $200 ($100)
Application for declaration of validity: $1,560 ($780)
Initiating application (children and financial): $695 ($345)
Initiating application: $425 ($210)
Response to initiating application: $425 ($210)
Notice of appeal: $1,665 ($830)
Daily divorce hearing fee (for each hearing day, excluding the first hearing day): $770 ($385)
Setting down for hearing fee (defended matters): $770 ($385)
Conciliation conference: $480 ($240)
Subpoena fee: $60 ($30)
Interim application: $130 ($65)
A reduced fee
Rates for a divorce application and a decree of nullity application cannot be waived entirely. However, you may be able to receive a reduced fee. As of 1 July 2023, the reduced expenses are the following:
Application for divorce: $365
Application for decree as to Nullity: $520
What are your legal fees?
When going through family law matters, such as parenting arrangement, seeking advice from a lawyer is recommended. A family lawyer generally offers a rate for many family issues. So, what are the divorce lawyers rate involved with legal representation? Payment options may include using a pre-paid debit card or leveraging a government concession card to potentially reduce costs.
Here are some divorce lawyer cost approximations to give you an idea of what you could expect to pay.
Joint application divorce fees application: $1000
Sole applicant divorce fees application: $1500
Parenting/property consent: $1500-$2000
Combined parenting/property consent : $3000
Preparing a financial agreement (with legal advice and certificate): $2000
Providing independent legal advice and certificate: $1000
Financial disclosure and property settlement negotiation: $3000
Family dispute resolution support: $1000
Initiating application or response to application (parenting and/or property: $5500-$6000
Lawyer’s fees (Family Law)
Family law is a complex field. Any mistakes can lead to delays and reapplications, which can lead to even greater expenses. Experienced family lawyers will help you navigate legal issues effectively and minimize your upfront costs. Opting for a cost-effective option can make a significant difference in managing expenses throughout the process. There are various complexities involved with any legal proceeding that can increase additional costs, including interest rates on delayed payments or costs associated with services from various retail outlets needed during the formal process.
Divorce applications
Missing spouse
If you’re seeking a sole application, you must serve the divorce papers on your former spouse. Sometimes, a spouse will intentionally try to avoid being served. This adds an extra layer of complexity to the divorce application process since your lawyer will need to apply for substituted service or dispensation of service.
Substituted service allows your lawyer to serve a third-party who they’re confident will bring the divorce application documents to the respondent’s attention. Dispensation of service permits an applicant to proceed with a divorce without serving the documents once they have exhausted all reasonable attempts to complete service.
Response to divorce application
A party can respond to a divorce application cost when they’re served with divorce application documents. A respondent cannot prevent an applicant from seeking a divorce. However, they can delay the application by contesting when the separation began. This may require the applicant to present additional evidence and draft an affidavit to submit it.
Property settlements
Lack of disclosure
When organising a property settlement, one party can complicate matters by making it difficult to access certain financial information. It may be necessary to hire experts such as forensic accountants and specialist valuers to determine if any asset pool are being hidden or the proper valuation is being obscured. These experts’ services can be costly.
Extending negotiations
Predictable fixed-rate property settlements offered by lawyers are often predicated on the parties already agreeing to how a property pool is to be divided. However, a party may try to take advantage of their former partner’s vulnerable financial position by continuously rejecting negotiated terms. The longer a lawyer has to spend working out an appropriate division, the higher their legal process fee will get.
Parenting arrangements
Contesting parenting agreements
Disputing child custody arrangements and parenting arrangements can cause significant delays which will lead to added legal expenses. If a party refuses to meaningfully engage in mediation expenses sessions, litigation may be necessary. Once matters go to court, expenses can rise dramatically. This is why it’s crucial to work with a family lawyer that prioritizes constructive solutions.
Relocation disputes
Sometimes, a parent will try to relocate with their children involved. This can make it difficult to settle parenting matters. The other parent will need to pursue a relocation order to prevent the child from being relocated. If a parent attempts to move a child overseas, you may apply for a child alert request or have the child’s name placed on an airport watch list by the Australian Federal Police. These processes can take time and require additional legal assistance.When going through family law, such as parenting arrangements, seeking advice from a divorce lawyer is recommended. A family lawyer generally offers a fee for many family law issues. So, what are the costs involved with legal representation? In addition to attorney costs, it’s important to consider government filing fees, which are mandatory charges for submitting legal documents. Payment options for both legal costs and government filing fee may include using a pre-paid debit card or leveraging a government concession card to potentially reduce costs. Keep in mind that while some fees are negotiable with your lawyer, government filing fees are typically fixed and non-negotiable.
How lawyers charge for divorce proceedings
Each divorce lawyer cost will charge for their services in different ways. Some offer a fixed-rate package, while others may charge an hourly rate. Both can have their pros and cons.
Fixed rates
Fixed rates can provide clients with a sense of security, knowing how much does a divorce process will cost upfront. This will help with budgeting for the divorce cost in Australia. This can also add to the trust between the client and the lawyer.
Clients can be more comfortable with their financial transparency and predictability when there isn’t a clock ticking on the lawyer’s efforts.
There are also potential drawbacks to fixed fee arrangements. Family law matters can be unpredictable and involve various complexities. A package may not adequately cover the work necessary for the case.
Hourly rate
An hourly rate can cover a lawyer’s services more comprehensively. Fixed fees only work when the lawyer can clearly predict the likely workload. Many cases are not straightforward. Every case has its own quirks that require individual attention.
An hourly rate allows a family lawyer to adjust their service as needed. It also provides clients with a more detailed breakdown of the work completed by their lawyer.
An hourly rate can also make expenses less predictable and run up other costs involved quickly. This can lead to higher client stress as hourly rates may stretch their budget beyond sustainable.
How are divorce costs split?
There are various expenses associated with proceedings. Parties can face costs, filing fees, and more. How should these filing expenses be divided between divorcing spouses? If a party is pursuing a sole application, they will typically be expected to cover the other costs to divorce. A joint application form may allow both parties to agree on sharing the filing fee.
Legal expenses are usually covered by the other party receiving the service. However, other services bring both parties together under the same roof. Parties may be required to undergo counseling or a mediation process to satisfy certain processes. The filing fee for these sessions can be split between the parties by agreement.
How are divorce settlements taxed?
When property settlement matters during a divorce, it’s important to understand the tax implications of the property settlement.
Transfer of property settlement
Divorcing couples may qualify for a CGT marriage or relationship breakdown rollover. Any property transferred between the parties isn’t subject to capital gains tax.
However, this only applies to property transferred through an order or binding financial agreement. Informal agreements on property arrangements aren’t eligible for the rollover.
Transfer of real estate
In certain circumstances, transferring the family home between spouses can be exempt from CGT through the main residence exemption. This exemption is predicated on the following conditions:
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The home was the primary residence for you, your partner and any dependants for the entire period you owned it.
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You didn’t use the residence to generate income. That is, you didn’t run a business from home or purchase the home for the purpose of flipping it for a profit.
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The house is on 2 hectares or less.
Spousal maintenance
Spousal maintenance can be a crucial part of property settlement. However, this financial support forms part of the receiving party’s taxable income. Maintenance is tax deductible for the paying party. Child support and custody payments are not tax deductible and are not considered part of your taxable income.
Superannuation
There isn’t any tax payable on superannuation when it’s split for a property settlement, initiating application. Total cost and tax implications may vary depending on the party’s circumstances, especially once the superannuation reaches the retirement phase.
Paying for legal representation
Personal savings
If you have sufficient savings, you can use that to cover legal expenses and paying outright, as long as you aren’t sacrificing other essentials. You may be able to mitigate the financial impact on your savings by organizing a manageable payment plan with your lawyer. For example, some lawyers will defer payment until after the close of the case.
Family loan
You might consider approaching a family member for financial assistance, including paying outright. This is a risky option because it can create complications in your relationship. To make it work, it’s vital to maintain open communication and clearly document in writing how much money is being loaned and how it will be repaid.
Personal loans
Personal loans are a common way for people to fund their legal costs and are fairly simple to apply for. They can be secured or unsecured. Unsecured legal fee loans don’t require the borrower to provide security for the loan, although they typically have a higher interest rate to cover the risk taken on by the lender. Borrowers pay back these loans over a time limit that can extend for months or years, depending on the loan size. Lenders assess borrowers by the strength of their credit score and income stability.
JustFund
JustFund is an innovative new fintech company providing alternative financing options to traditional lenders. As a credit provider, they focus entirely on supporting clients. Other lenders will provide a loan and leave the borrower to handle repayments with best interests accruing over the life of the loan.
As opposed to a loan provider, JustFund offers a line of credit that can be used to cover legal expenses for property and parenting matters. Borrowers don’t repay anything until the completion of their divorce settlement. The repayment is taken from your property entitlement and you only repay the funding you used. You’re not saddled with a loan obligation that lasts months.
JustFund’s team is staffed by experienced family lawyers who are intimately familiar with legal financing needs. They ensure your funding is suited to the specifics of your case so your finances are managed as efficiently as possible. Poor credit or financial insecurity is no barrier to getting approved. JustFund wants to help you secure a healthy financial future.
Conclusion
Before starting a divorce proceedings, it’s vital to understand the divorce cost in Australia. Court costs increase every year in line with inflation, so this updated guide can serve as a comprehensive rundown of the most current fee structure for the Family Court.
It’s also crucial to understand what costs come with engaging divorce lawyers. Our approximations should give you an idea of what you can expect to pay. Seek legal advice for a specific quote for your case.
If you need advice on divorce, contact our divorce lawyers today.
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