When Costs Overshadow the Amount in Dispute

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Despite our best efforts, divorce can result in a highly emotive battle between two parties. A recent case, reported by the Daily Mail, highlighted that without proper controls it is still possible for legal costs to outweigh the amount that the case is worth.

In this matter, involving a couple who were separating after 22 years of marriage and three children, 98% of the assets were used on legal fees – leaving only £5,000 for each party at the end and a shattered relationship between the father and children.

Unfortunately, in circumstances where emotions are a large factor, conflict is unavoidable. However, where cost is involved, we try to place focus on what the dispute is about at an early stage of a matter so that we can compare the amount in dispute with the possible legal costs in pursuing the case.

It is important for a case to be conducted in a proportionate way, comparing the legal costs with what can be achieved; and sometimes it makes commercial sense to end a case early – where the costs start to outweigh the amount in dispute.

Where money is a factor, it is often sensible to consider more cost-effective ways to resolve an issue, such as mediation or arbitration. When we assist as mediators, we always help clients to compare the possible costs of going to court – financial, emotional and time – with what is in dispute. This practical approach can be very helpful in finding a solution at an early stage, and so preserving as many assets of the family as possible, which in turn gives more options for resolution.

At Nockolds, we have a range of specialist family lawyers and mediators who can assist in trying to conclude matters in the most cost-effective way. To discuss how these options could help you, please contact a member of our Family Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.