The cost of divorce can vary wildly in Australia, depending on your financial situation. While the legal ending of a marriage can be straightforward, dividing property and assets between you and your former partner is where costs can start to add up.
Here, we will explore some of the costs commonly associated with divorce in Australia.
Breaking down the cost of divorce in Australia
When you’re looking at the cost of divorce in Australia, you’ll need to account for the following expenses:
Court filing fees
Once it has been decided that a divorce is the route you and your partner will need to take, you must apply for one. The person making the application will need to pay a fee for initiating the application and pay the fee for the Application for Divorce. Altogether, this can cost you over $1,000 – although there are reduced fees for this if you are living under financial hardship, hold a concession card or receiving Legal Aid, among other things – you can find more information about this on the Federal Circuit and Family Court of Australia site.
Legal fees
How much you will spend on legal fees during your separation or divorce will depend on how you and your partner decide to proceed.
Pursuing litigation will involve hiring lawyers (solicitors or barristers) to manage your case and any court costs. Depending on the legal support you need, your costs can reach between $50,000 and $100,000 or more.
Private arbitration, where you and your partner present your case to an independent arbitrator, can be less expensive than pursuing your divorce through the courts. Private arbitration can cost anywhere between $4,000 and $8,000 per day. Depending on how quickly your divorce can be resolved, this could mean a considerable savings compared to litigation.
You can also consider Alternative Dispute Resolution (ADR). What are some ADRs? Think of services like mediation, where parties can agree on parenting arrangements or the division of property and assets with the help of a mediator. This process is a cheaper and more gentle method of resolution.
Regardless of your choice, consider legal advice before starting. Many lawyers charge by the hour – so the more input or expertise needed, the higher the cost. Research your options carefully, as there are generally a few types of legal cost structures that firms will follow – such as no win, no fee, fixed price, or fee-for-service. Legal firms will offer different options, so knowing which structure may fit you best will help you choose an appropriate firm.
Other costs
No matter which resolution method you choose—litigation, arbitration, or mediation—there will be other related expenses that you need to consider.
Separating assets fairly between yourself and your former partner is crucial to any divorce settlement. Many people hire a valuator as an independent third party to accurately assess and value your property and other assets so they can be divided equally.
If you are required to see your property, the costs of putting it on the market and engaging real estate agents will also need to be considered.
There may also be costs related to your child custody arrangements – if you are not the primary carer for your children, you may need to pay child support to your former partner as part of your settlement.
Managing the cost of a divorce
Seeking legal advice early in any separation or divorce proceedings can help you figure out what kind of legal bill you are looking at overall. An early consultation will help direct you towards the best option for you and your partner. Lawyers or family law professionals will be able to point out if you are eligible for any discounted rates or services to cover this matter. The other viable option is to consider taking out a legal loan to help you cover any essential costs upfront while spreading the repayments over more manageable instalments.
Consider a legal loan from Handy Finance
Divorce can be a significant drain on financial resources. Rather than add to an already stressful situation, consider taking out a legal loan with Handy Finance to cover legal expenses. You can use the loan to secure support and pay bills upfront, spreading the cost of the loan over several years. This reduces the financial burden and allows you to focus on the legal proceedings.
Apply for an easy loan from Handy Finance online today. Our legal loans are between $2,001 and $75,000, with loan terms ranging from one to seven years. You can repay your loan in weekly, fortnightly or monthly instalments, and as our loans all have a fixed interest rate, your repayment sum will remain the same. There is a $0 early repayment fee; the only other fee you’ll have to pay as part of the loan is your establishment fee.
Contact our credit team today to learn more about our legal loan options.
Approvals are subject to Handy Finance’s credit criteria and responsible lending requirements. Fees, charges, terms and conditions apply. Finance provided to approved applicants by OurMoneyMarket Lending Pty Ltd ABN 64 605 231 669, trading as ‘Handy Finance’ holds Australian Credit Licence number 488228 and is a member of the Australian Financial Complaints Authority (AFCA). The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, we recommend that you consider whether it is appropriate for your circumstances. We recommend you obtain independent advice before acting on any information in this article.
