HOW YOU CAN MINIMIZE YOUR LEGAL COSTS

As solicitors practicing in Family Law, we see the emotional and financial costs of separation and its consequences every day. One of the main issues for separating couples is whether or not they need a lawyer and, if they do, what that lawyer will cost.

The fact is that Family Law legislation is extremely complex and to navigate your way through the issues you have to know what you are doing. The cost of getting a settlement wrong as a result of poor advice can be many times greater than the cost of getting quality and knowledgeable advice from a competent legal professional. You only get one chance to protect your rights in Family Law matters and so it makes sense to get that advice from the start.

Specialized Family Law legal representation, like most high quality things, is not cheap. However, that does not mean that the cost of legal services has to be ruinous. Depending upon how both you and your partner decide to respond, the matters between you may be able to be concluded very cost effectively indeed and with all parties being sure that the outcome achieved is entirely appropriate and in accordance with the Law.

Looking at it in practical terms, the cost of your separation, and if appropriate, divorce will be, in many ways, up to you. Just as there is a process when couples marry, there is a process that you have to go through when you separate and if you (and your partner) make a commitment to deal sensibly with that process, neither the separation experience nor your legal costs need be as bad as you may otherwise fear they might be.

As a starting point, here are some tips that can help you do this.

1. Always remember that time is money.

First you must understand how lawyers charge in Family Law matters. We provide our services based on a fee per hour. In other words, we sell our time. This means simply that the more time we invest in you and your case, the higher our fees will be. Be prudent in your purchase of our services. By using less of our time, you will, by definition, keep your fees down.

2. Understand when we are “on the clock”.

Don’t be afraid to ask us what we do and do not charge for. For example, many people do not appreciate that our time on the telephone will be charged. Ask us for clarification if you are uncertain so that you don’t unknowingly request services that you will be billed for.

3. Use your time with us wisely.

Service professionals including doctors, dentists and accountants as well as lawyers, base their fees on measured units of time. We bill in blocks of six minutes - that is, we will charge you for one unit of time for each six minute period or part thereof we spend on your matter. To realize maximum efficiency under this system plan ahead before meeting with or talking to us. Save your questions for one conversation, rather than calling us our every time you have something on your mind. Four two minute conversations will cost you a lot more than one eight minute conversation.

4. Get smart, not mad.

Where your dispute relates to financial issues look at your separation as a business transaction. You are after the best economic result. It makes no sense to pay us $1,000.00 so we can get you something worth $100.00. Regardless of the issues the frame of mind that you and your partner have as you approach the end of your relationship is the most significant element in determining how smoothly and inexpensively the process of your separation and settlement will progress. If one or both of you allows resentment or hostility to the other to direct your thinking, any potential for efficiency that the case may have can easily be lost. From this will come two certainties:-

(a) First, the action is going to take longer to conclude; and

(b) Second, your legal fees are going to sky rocket, because you and your matter will be taking more of our time.

5. Compromise, compromise, compromise.

A whole new set of rules apply to your relationship once you separate and sometimes couples have real difficulty coming to grips with this concept. The act of separating will make many of the battles that you were fighting become immediately irrelevant. Your rights and obligations in respect of your partner and your children become regulated. What you think is fair and reasonable is not necessarily what the Court will think. To persevere pursuing an objective that the Court will ultimately ignore (i.e. seeking vindication against your partner or attempting to come out of the matter better than your partner by hiding assets, etc) is a waste of time and money. The rules relating to separation exist for a reason. Play by them and you will not only get the best possible results but also a more cost effective outcome.

The family law system is driven by equity. It attempts to be dispassionate in finding solutions to issues in what is often a highly emotional environment. The Court does not set out to punish or to allot blame instead it applies a series of clear and well known principles in order to deliver an outcome based on the law and the evidence. The Court will look for a middle of the road solution, so it makes sense if you want to save money to move your own position to the middle of the road as well.

If you do not do this and instead adopt an entrenched position you risk spending of lot of money for very little gain. For the best chance of settling quickly for minimum legal cost, be flexible, be creative, be compromising and work towards a settlement. The more amicable the conduct between you and your partner, the more likely the matter will be resolved quickly and the quicker the resolution, the less will be our fee.

6. Some things you should discuss with other professionals.

Separation and its consequences are emotionally and financially stressful. At some point, you may want to talk to someone about the changes to your life that the separation process has brought or will bring. You may be tempted to rely on your lawyer for this but it is rarely, if ever, appropriate for your lawyer to provide that sort of support. Apart from the expense involved in spending time with your lawyer – see above - lawyers are not properly trained to deal with such issues. Counselors, psychologists, psychiatrists and health professionals are appropriate people to see about your emotional issues while you should discuss your tax and financial arrangements with an experienced accountant or financial planner. We have professional relationships with a wide range of very affordable professionals to whom we can refer you to if you need assistance in these areas.

7. The more of the work you do, the less work we will have to do for you.

Throughout your matter we will ask you for information to help us properly represent you. The first, best, and most obvious source of information relevant to your matter is you. We will use various methods for gathering the information we need including questionnaires, instruction sheets and check lists. We use these methods to give you the opportunity to save money. If you invest the time and energy necessary to complete the questionnaires or checklists, we won’t have to spend time (hence your money) gathering the information elsewhere.

8. Consider alternatives to litigation.

The last place you want to find yourself during your Family Law matter is in a Court room. Court appearances, Hearings, and Trials all take an inordinate amount of time and as we know, time is money. It’s not uncommon for us to be paid for hours of sitting around and waiting in the Court room, just so that we can speak to the Judge or Magistrate for ten minutes. Fortunately though there are alternatives. Mediation can be effective. You and your spouse meet with a neutral person who gives you both guidance and endeavors to facilitate a settlement.

Another alternative is collaborative law (see our website www.mccowans.com.au for more details). This is a process whereby spouses and their lawyers contract to keep the case out of Court. Before resorting to war, consider if your circumstances will allow resort to one of these alternative methods of resolution.

Separation and its consequences are expensive - No doubt about it. However, that does not mean that the expense is uncontrollable. With foresight, organization, effort and a bit of practical action it is possible to manage your legal costs and by doing so you may also be able to avoid much of the conflict and unpleasantness that so often goes with this type of litigation.