A costs agreement is a contract between a solicitor and client are governed by the legislation regulating the legal profession in the state or territory in which the solicitor practices. As in any contract, a costs agreement must state that it is an offer which is accepted by the client, either by way of writing (usually by the client signing the agreement) or by conduct (the client giving instructions after the agreement is received).

A costs agreement sets out how and when a client will be charged in family law proceedings.

Costs incurred by a client may include:

• professional fees and expenses;

• disbursements such as photocopying and facsimile charges;

• fees for medical reports or other expert reports;

• court filing fees;

• fees of process servers/agents; and

• barrister’s fees.

A costs agreement must be fair and reasonable. The existence of a costs agreement between solicitor and client does not preclude disciplinary proceedings against a solicitor for overcharging.

The state and territory legislation which should be considered is:

• New South Wales — Legal Profession Uniform Law 2014 (NSW);

• Queensland — Legal Profession Act 2007 (Qld);

• Victoria — Legal Profession Uniform Law Application Act 2014 (Vic);

• Australian Capital Territory — Legal Profession Act 2006 (ACT);

• Northern Territory — Legal Profession Act 2006 (NT);

• South Australia — Legal Practitioners Act 1981 (SA);

• Western Australia — Legal Profession Act 2008 (WA); and

• Tasmania — Legal Profession Act 2007 (Tas).

Solicitor/client costs (including the regulation of costs agreements and costs dispute resolution) in the Family Court are governed by the legislation regulating the legal profession in the state or territory in which the solicitor practices.

See Costs agreements with clients

At various stages in proceedings, a solicitor in a family law matter must provide their client, the court and all other parties with a costs notice setting out information relating to costs and expenses incurred and projected. These requirements will come about either by court direction or by operation of the relevant Rules applicable to the Court in which the proceedings are heard, which require a solicitor to provide to the client, immediately prior to each court event, a written notice of:

• the client’s actual costs, both paid and owing, up to that court event;

• the estimated future costs of the client up to and including each future court event; and

• any expenses payable to any expert witness.

A copy of that notice must also be provided to the other party and to the court.

See Notification as to costs.

Since the inception of the Federal Circuit Court (formerly the Federal Magistrates Court), that court has declined to become involved in rules relating to solicitor/client costs and has made rules only in relation to party/party costs. Solicitor/client costs in respect of proceedings conducted in the Federal Circuit Court are governed by the legislation regulating the legal profession in the state or territory in which the solicitor practices.

The rules of the Family Court as to costs (Ch 19 of the Family Law Rules 2004) do not generally apply to family law proceedings in the Federal Circuit Court.