New law ends divorce cost gambling and secret deals

The bitter cat and mouse game over legal costs played out by many divorcing couples will come to an end next month when each side will have to pay their own legal bills even if they win their court case.

Lawyers say it will stop the game of bluff that can prolong proceedings, but there’s also a danger that it could force some people who are already traumatised by the emotional upheaval into accepting an unfair settlement.

Family law specialist Catherine Wenborn says the change is being introduced because the current system sometimes encourages couples to gamble with the court.

“Couples are allowed to make settlement offers to each other that are kept secret from the judge until after the hearing. In the meantime, each side tries to persuade the judge to give them a better deal.”

Miss Wenborn, of Andersons in Nottingham, says if one side does end up getting a better deal from the judge, they might also get the added bonus of being awarded costs because the other side had been unreasonable in turning down the lower, secret settlement.

“It’s a double edge sword. If you win you get a better deal with the chance that the other side has to pay your costs. But if you lose, the opposite is true.”

The gambling will end on April 3rd when both sides will have to pay their own costs. Only in extreme cases will costs be awarded against the losing party

“The new system should make everything far more transparent but there is a danger that one side will feel pressurised into accepting a low offer because they fear that holding out for more will simply incur greater legal costs.”

Miss Wenborn said the best remedy for both sides is to get good legal advice so they can reach a fair settlement without having to go to court.

For further information contact Catherine Wenborn.