Updated 4 November 2026
CM Law’s Ultimate 50 Things You Need to Know About Property Settlement During Divorce #15. What are the legal costs involved in property settlements?
Back to CM Law’s property settlement during divorce guide
The cost of a property settlement depends on the work needed to resolve it, document the agreement and carry it out. A useful budget separates your lawyer’s fees from court fees and outside expenses, then identifies what could change. This guide explains the main costs for separating couples in NSW and how to keep financial decisions informed throughout the matter.
What costs are involved in a property settlement?
You may need to budget for solicitor and barrister fees, court filing and hearing fees, valuations, mediation and other necessary expenses. The total depends on the disputed issues and the work required. Ask what each estimate includes, whether GST applies and who is responsible for paying outside providers.
Family law property proceedings for NSW couples are generally dealt with by the Federal Circuit and Family Court of Australia. Court costs guidance distinguishes your private legal bill from costs that one party may be ordered to pay another.
Is there a reliable average cost for every settlement?
A single average cannot tell you what your matter will cost. An agreed division of straightforward assets involves different work from a disputed business valuation or a contested hearing. Request an estimate based on your circumstances, with separate stages and the assumptions that could increase or reduce the work.
Ask for budgets for initial advice, disclosure, negotiation, formalising an agreement and any necessary litigation. At each stage, compare the likely benefit of further work with its cost, while allowing for safety concerns and missing financial information.
What should a costs agreement and estimate explain?
Ask for the scope of work, charging method, applicable rates, likely disbursements and an estimate of total costs. Clarify what is excluded and when payment is required. Where costs disclosure obligations apply, significant changes must be disclosed, including their effect on the estimate. An estimate is not necessarily a fixed price.
The NSW costs disclosure guidance explains these obligations. For a fixed fee, check whether negotiations, revisions, counsel and implementation are included. Agree how additional work will be authorised and ask for updates before the current budget is exhausted.
How does financial disclosure affect legal costs?
Complete, organised financial information helps identify what actually needs resolving. Missing statements, unexplained transfers and delayed disclosure can require extra correspondence, subpoenas or court applications. Full and frank disclosure is a continuing obligation, including before proceedings, and a failure to comply may lead to costs orders or other consequences.
The Court’s disclosure guide explains the requirements, now also reflected in the Family Law Act. Supply indexed documents and a clear asset and liability schedule. Tell your lawyer about changes rather than waiting for the other party to discover them.
When are valuers and other experts worth the expense?
An expert may be necessary where an asset’s value or financial treatment materially affects the settlement. Businesses, unusual property interests and complex superannuation can require specialist assistance. Before commissioning a report, identify the issue, obtain an estimate and consider whether an agreed single expert can avoid unnecessary duplication.
The Court’s case management framework addresses whether a single expert report is needed. Agree appropriate instructions and how the fee will be paid. A second opinion is not automatically admissible merely because the first valuation is disappointing.
What are the current court filing fees?
From 1 July 2026, the filing fee for an application for consent orders is $215. An initiating application seeking financial final orders only costs $455. These amounts are court fees, not the total cost of preparing or running a case. Other application combinations and court events attract different fees.
Check the Court’s published fee schedule before filing. GST does not apply to court fees. Allow separately for any interim application, subpoena, hearing or conciliation fee, as well as your lawyer’s preparation and attendance charges.
Can court fees be waived for financial hardship?
You may qualify for a court fee exemption because of specified concession or legal aid eligibility, or because paying would cause financial hardship. The correct application and evidence are required. An exemption covers the relevant court fee; it does not pay your solicitor, mediator, expert or other private expenses.
Read the Court’s exemption guidelines. Eligibility must be checked for the particular fee, and joint applicants generally both need to qualify. Divorce has a separate reduced-fee system, so do not assume the property application rules apply to divorce.
Can negotiation or mediation reduce the overall cost?
Negotiation or mediation can narrow disputed issues and avoid some hearing preparation, but neither guarantees agreement or a lower total bill. Financial cases generally require genuine attempts to resolve matters before filing, subject to exemptions. Any process should account for safety, access to documents and each person’s ability to participate.
The financial pre-action procedures recognise exemptions including urgency and family violence. Ask whether a mediation fee includes preparation, attendance and documenting any agreement. Your lawyer’s work may be charged separately, and an unresolved issue may still require court determination.
What costs remain after an agreement is reached?
An agreement still needs appropriate legal documentation and implementation. Consent orders can make agreed property arrangements binding, but the Court must be satisfied that the proposed orders are just and equitable. Budget for drafting, the application and any transfers, refinancing, superannuation steps or tax advice needed to complete the settlement.
The consent orders guide explains the application process. Confirm who will prepare transfer documents, meet lender requirements and deal with any superannuation trustee. A handshake or informal email exchange should not be treated as completing a binding property settlement.
Does each person normally pay their own legal costs?
Yes. The starting point under section 114UB of the Family Law Act is that each party bears their own costs of proceedings, subject to exceptions. A favourable property outcome does not automatically mean reimbursement. Keep your budget realistic rather than assuming the other person will ultimately pay your legal bill.
The current costs provision replaced section 117 from 10 June 2025. A costs order can cover only part of a bill, and the recoverable amount may differ from what you agreed to pay your own lawyer.
When might the Court order someone to pay costs?
The Court may make a costs order where circumstances justify it. Relevant considerations include financial circumstances, litigation conduct, compliance with orders, whether a party was wholly unsuccessful and written settlement offers. No single factor guarantees an order. The Court assesses what is just in the circumstances of the proceedings.
Under section 114UB, the discretion is broader than simply identifying a winner. Seek advice before rejecting an offer or bringing an additional application. Party and party costs and indemnity costs are different; neither should be assumed to reimburse every expense.
What if you cannot afford representation?
Raise funding difficulties early. Ask about staged advice, a limited scope of work or a payment arrangement, and check whether legal assistance is available. Legal aid for property matters has eligibility requirements and is not guaranteed. Access to shared assets or interim funding requires advice about the particular circumstances.
The Legal Aid NSW property policy sets out its criteria and possible contributions. Tell your lawyer if you cannot access documents or money safely. Obtain advice before withdrawing disputed funds or committing to borrowing based on an expected settlement.
What does Simic and Norton show about escalating costs?
In Simic & Norton [2017] FamCA 1007, the Family Court at Sydney considered substantial costs in combined parenting and property proceedings. Benjamin J referred to about $860,000 in total legal costs and disbursements, including estimated hearing costs. The property dispute settled on the seventh day of the hearing.
The judge criticised inflammatory and unnecessary correspondence and referred the solicitors’ fees and approach to the NSW Legal Services Commissioner for investigation. This was a referral, not a finding that either solicitor had committed professional misconduct or an order compensating the parties.
The amount was specific to those combined proceedings and was not an average for property settlements. The practical lesson is to ask what each proposed step will achieve, keep communications focused and review the remaining budget before further litigation.
What can you do if you disagree with your bill?
Ask your lawyer to explain the disputed work and charges, and request an itemised bill where appropriate. If the issue remains unresolved, NSW clients may seek assistance from the Legal Services Commissioner or apply for costs assessment. Strict time limits and eligibility rules apply, so raise concerns promptly.
The OLSC costs disputes fact sheet explains these options. Keep the agreement, estimates, updates and invoices. A dispute over your own lawyer’s bill follows a different process from disputing costs payable to the other party under a court order.
How can CM Lawyers help you plan the legal costs?
CM Lawyers can review your circumstances, explain the work likely to be required and discuss the scope and costs of advice, negotiation or court proceedings. Bring your financial documents, existing orders, correspondence and any settlement proposal. This helps us identify the next useful step and the information still needed.
For advice about property settlement in NSW, call (02) 9557 9000, email lawyers@cmlaw.com.au or contact CM Lawyers. Ask for a clear scope, cost estimate and explanation of the factors that could change it.
This article provides general information about family law and legal costs in NSW, not advice about your circumstances. Court fees are current at 4 November 2026 and may change. The real case discussed is not a prediction of typical costs or outcomes.
Key resources
