The costs which can be involved
in Divorce or other matrimonial proceedings or issues are clearly a fundamental concern
and are increasingly proving to be influential at all stages of the proceedings, so far as
the parties involved are concerned. It is possible for one party in a case to increase the
costs by carrying out unnecessary steps or creating unnecessary work for the other side.
Equally, it is possible that one party, or indeed both parties, can reduce and confine the
costs by suitable agreement or narrow down the issues which divide them, and thereby
reduce the amount of work that the lawyers are required to carry out on their behalf.
The question of costs is also
affected by the issue of Legal Aid. The extent to which Legal Aid is allowed in
matrimonial proceedings has been pared down in recent years, but Legal Aid is still
available subject to the applying party qualifying for Legal Aid both by being within the
requisite financial criteria, and by having a case of merit to pursue with the benefit of
Legal Aid. However, there is no doubt that given current political developments in the
arena of Legal Aid, it may not be possible in the long term for cases to be conducted with
the assistance of public funding.
The general rule in relation to
costs is that if a party pursues a claim in a matrimonial case and is successful in that
claim, normally the other party will be expected to pay the reasonable costs incurred in
presenting that claim. This is of course subject to many exceptions, and no two cases are
the same in the manner in which the Court regards them in determining the question of
costs. In many cases not only does the applying party have to show that they have
succeeded in their case but also that the other party has been unreasonable in the manner
in which they have responded to it. Clearly in many cases it is difficult to determine
whether one party has "succeeded" at all.
There are many issues in a
matrimonial case which on the face of it may be resolved or appear to be resolved to the
detriment of the applying party or it may be difficult to decide whether they have gained
more than they have lost. As a general rule however if, for example in a financial case,
the applying party proceeds to Court and the responding party fights the claim all the way
without making any reasonable overtures to settle or compromise the case, the party who
receives a financial settlement will normally expect the other party to pay the costs.
This does not however mean that all the costs will be recovered. The applying party can
only recover from the responding party those costs which have reasonably and necessarily
been incurred in presenting the claim. In any case there are often costs over and above
those which are reasonably incurred but which have still been created.
The applying party can then find
that they only recover three quarters or two thirds of their full costs from the
responding party in those circumstances. Parties who hold a Legal Aid certificate also
need to be aware of the implications of the Legal Aid Board Statutory Charge. For a party
who is in receipt of Legal Aid, they can be required to pay back to the Legal Aid Board
the amount of costs incurred in presenting and pursuing the case from the fruits of the
settlement which they ultimately obtain. If they succeed in obtaining an Order for Costs
against the responding party this to the extend indicated may save them from the necessity
to pay any money back to the Legal Aid Board. If they can show that the settlement is
intended to be used to provide a home for the applying party and the children of the
family again the Legal Aid Statutory Charge can at least be postponed and charged on that
house. In other circumstances however the applying party can be required to pay back to
the Legal Aid Board the amount of the costs from the proceeds of the settlement.
This firm approaches cases in which
it is acting on the basis that payments on account of costs are required to be made by our
own client as the case proceeds on a periodic basis. Invoices are rendered approximately
over two months. At the end of the case if costs have been recovered against the
responding party the amount recovered is reimbursed to the client who in all the
circumstances will have paid the costs to us as the case has proceeded.
In order to conduct
a vase under a Legal Aid Certificate, it has been necessary since 1st
January 2000 in relation to all claims subsequently filed for the firm
involved to have a Legal Aid Franchise. This firm has decided as a matter
of policy not to undertake any further cases on a Legal Aid basis and has
not therefore sought a legal Aid Franchise.
The amounts of costs can of course
vary depending upon the extend to which cases are contested or not. Typically however a
divorce itself if undefended will cost £527.66 plus VAT plus Court fees which are
currently £180.00. This at present rates of VAT make a total cost of
£800.00. It is
common for the other party in the case to share equally the costs of the divorce or even
to pay them all at the end of the day and, as indicated above, the client would then be
reimbursed from that payment. The costs of obtaining a financial settlement can vary
hugely but every effort is taken to keep costs down and ensure that clients receive value
for money. At appropriate intervals in the case a review takes place to discuss with the
client the state which has been reached and the amount of costs which have been incurred.
It is possible at such times to ensure that costs are kept on a tight reign and that only
steps which can reasonable be justified are taken. Where we instructs experts such as
barristers, accountants or surveyors to prepare reports or act in relation to a case, we
are required to discharge the fees of the experts ourselves and in such circumstances it
is necessary for us to receive payment on account from our client for the amount required
for such fees. Every attempt is made to predict the amounts of experts fees and estimates
are sought so that the client is fully aware of the extent to which such fees are likely
to be incurred. |