Why Costs Matter
Going to the court is expensive. Ontario family judges can order one party to contribute to the other’s legal bill so that the process is fair and efficient. This type of award is described as an order for “costs.” Rule 24(3) of the Family Law Rules contains a presumption that the successful party is entitled to costs.
What “Costs” Really Means
A costs award usually covers a portion of lawyer’s fees, disbursements and HST. Full-recovery is rare; most orders are partial indemnity. Partial indemnity orders typically allow for recovery of 40-60 % of actual fees. Courts aim for a number that is reasonable and proportional to the dispute.
How Judges Decide the Amount
Generally, when fixing costs, a judge looks at the following:
- Outcome: Who was more successful overall?
- Behaviour: Did either side act unreasonably or in bad faith (e.g., hiding disclosure, ignoring deadlines)?
- Offers to settle: A party which gets a better order than their own Offer may get enhanced costs; a party which rejects a fair Offer may have to pay more costs.
- Complexity & importance: What was the reasonableness and proportionality of
- the party’s behaviour;
- their conduct of the case; and
- their fees and expenses claimed,
in relation to the importance and complexity of the issues in play?
Tips to Keep Costs Down
A Family Law lawyer will be able to guide you as to approaches that will manage your costs in relation to a Court action but here are some general tips that will assist in achieving this goal:
- Settle early if you can. A practical offer to settle protects you; if the other side refuses and does worse
at trialin relation to an agued step before the Court, they may get costs against them. To benefit from the cost consequences of an offer to settle, your offer must meet certain requirements. Your Family Law lawyer will ensure that these requirements are met. - Be fair, disclose early. Judges penalize parties who initiate or continue conflict for no good reason and fail to disclose important and required information. Work with your Family Law lawyer to ensure that you are meeting your requirements to the Court and, therefore, minimizing any exposure to an order for Costs.
- Budget with your family law lawyer. Ask for realistic fee estimates and weigh them against what’s at stake.
- Use other methods of dispute resolution like mediation or arbitration. They’re almost always faster and cheaper than Court action
a full trial.
Conclusion
In Ontario, the basic rule is: “costs follow the event.” In layperson’s terms, costs will follow, and be prescribed by, the outcome of each step in a case. Work closely with an experienced family law lawyer to negotiate smartly, act reasonably and minimise the risk of paying the other side’s bills. Litigation is sometimes necessary – but unnecessary costs can still be reduced.
Adi Choudhary, a Family Law Lawyer at Bair Family Law, brings empathy, insight, and steady guidance to his work. With a calm and client-focused approach, Adi supports individuals and families navigating separation, parenting disputes, and financial conflicts with clarity and compassion.
The information contained in this blog is provided solely for general interest; may not reflect current legal developments and should not be relied upon or construed as legal advice. Online readers should not act upon any information in this blog without first seeking professional advice. The sending or receipt of this information does not create a solicitor-client relationship between the reader and the content creator. For specific, comprehensive and up-to-date information, or for help with a particular factual situation, you should seek the advice of a family law lawyer.
