Reducing the Costs Associated with a Marriage Breakup

Marriage breakdowns can be emotionally taxing and financially burdensome. The division of property, parenting arrangements, and legal proceedings often come with inevitable costs, such as legal fees, expert valuations, and court expenses. However, there are practical ways to minimise these costs while navigating a separation under the Family Law Act 1975 (Cth).

Strategies to Reduce Costs

1. Reach Agreement Wherever Possible

   • The most significant savings come from resolving disputes amicably. If you and your former partner can agree on property division and parenting arrangements, your legal fees will be substantially reduced.
   • Example: Preparing binding financial agreements or consent orders is less costly when parties agree on the terms upfront, compared to protracted negotiations led by lawyers.

2. Be Realistic About Asset Values

   • Disputes over assets can quickly escalate legal costs. Ensure you have realistic expectations about the value of the disputed property and whether the cost of litigation is worth the potential gain.
   • Example: Spending $50,000 on legal fees to dispute an asset worth $30,000 is financially counterproductive.

3. Avoid Using Children as Leverage

   • Parenting disputes can be emotionally harmful and financially draining. Under the Family Law Act, the court prioritises the best interests of the child and discourages using children as tools in disputes.
   • Example: Instead of inflaming conflict, consider mediation to create a parenting plan that benefits the children and reduces costs.

4. Focus on the Future, Not Punishment

   • The Family Law Act does not aim to punish past behaviours. Avoid using legal proceedings as a way to seek retribution against your former partner, as this can prolong the case and increase costs.
   • Example: Attempting to "punish" a partner for perceived wrongs may lead to unnecessary legal battles that provide little satisfaction and significant expense.

5. Understand the Cost of Litigation

   • Always weigh the potential financial and emotional costs of pursuing a case in court. Be prepared to compromise to avoid unnecessary litigation.
   • Example: Mediation or arbitration is often quicker and more cost-effective than going to court, where delays and legal fees can mount.

6. Avoid Comparisons with Others

   • Each divorce case is unique. Outcomes in other people’s settlements are unlikely to have any bearing on your case. Well-meaning advice from friends and family can sometimes lead to unrealistic expectations or harmful strategies.
   • Example: Just because someone you know received a certain settlement does not mean you will receive the same, as the court considers factors specific to your situation, such as contributions and future needs.

The Role of the Family Law Act

The Family Law Act 1975 encourages parties to resolve disputes amicably and avoid court where possible. Key provisions include:

• Section 79: Property settlements must be just and equitable. Mediation or negotiation can help achieve this without the need for costly litigation.
• Section 60B: The best interests of the child are paramount in parenting disputes. Courts aim to ensure children maintain meaningful relationships with both parents, provided it is safe and in their best interests.
• Compulsory Dispute Resolution: Before applying to the court for parenting or financial orders, parties are often required to attempt mediation or family dispute resolution, which can significantly reduce costs.

Additional Tips to Save Costs

• Seek Early Legal Advice: Consulting a family lawyer early can help you understand your rights and obligations, avoiding costly mistakes later.
• Provide Full Disclosure: Be transparent about your financial situation to avoid delays or accusations of hiding assets, which can increase legal expenses.
• Use Online Resources: Platforms like the Commonwealth Courts Portal allow for online filing of applications, saving time and administrative costs.

Final Thoughts

Divorce does not need to be financially ruinous. By focusing on compromise, realistic expectations, and the best interests of the children, you can reduce costs and minimise emotional strain. The Family Law Act 1975 provides a framework for resolving disputes in a fair and equitable manner, but achieving this outcome often depends on the willingness of both parties to work together. Seeking early legal advice and exploring alternative dispute resolution methods can help you navigate the process effectively while keeping costs under control.