Navigating family court proceedings in Ontario can be complex, and many people are surprised to learn that costs—where one party is ordered to contribute to the other party’s legal expenses—are a routine part of the process.

Courts award costs not only to compensate the successful party, but also to encourage reasonable settlement and to promote the efficient and fair conduct of litigation.

This article provides a general overview of costs in family law proceedings. It is not a substitute for legal advice.

Rule 24: The Starting Point for Costs

Under Rule 24 of the Family Law Rules, the successful party is presumptively entitled to costs. If you are largely successful on a motion, on occasion at a conference, or at trial, the court will generally order the other party to pay a portion of your legal fees.

This presumption is not automatic. Judges have broad discretion and will consider the unique circumstances of each case. For example, when a government agency is a party, the court has full discretion regarding costs. The presumption also does not apply in child protection cases.

In Serra v. Serra, 2009 ONCA 395, the Ontario Court of Appeal identified three core objectives of costs awards:

(a) to partially indemnify successful litigants for the expense of litigation;

(b) to encourage settlement; and

(c) to discourage and sanction inappropriate behaviour by litigants.

Types of Cost Awards

Family courts generally award one of three levels of costs:

• Partial indemnity costs — the most common award, typically 40–60% of actual legal fees;
• Substantial indemnity costs — a higher level of recovery, often ordered where one party has engaged in unreasonable conduct; and
• Full indemnity costs — rare and reserved for truly exceptional circumstances.

The objective is fairness, not full reimbursement. Awards are based on the parties’ conduct and the complexity of the case. In Beaver v. Hill, 2018 ONCA 840, the Ontario Court of Appeal confirmed that proportionality and reasonableness are the guiding principles. Costs do not normally approach full recovery unless the losing party acted in bad faith or the successful party achieved a result better than their offer to settle.

Reasonableness and Conduct Matter

Family courts scrutinize how parties behave throughout the proceeding. Even a successful party can be denied costs—or ordered to pay the other side’s costs—if their conduct was unreasonable or unnecessarily increased expense or delay.

Common examples of unreasonable behaviour include failing to provide proper financial disclosure, ignoring court orders, or rejecting reasonable settlement offers without justification. Parties are expected to work cooperatively toward resolution whenever possible.

Under Rule 24(4), the court may:

• award no costs to the successful party,
• apportion costs between the parties, or
• order the successful party to pay the opposing party’s costs.

A lesser-known provision, Rule 24(7), creates a presumption that a party who fails to attend a court appearance—or attends but is unprepared—will pay the other party’s costs of that appearance. Courts retain discretion, however, and may decline to make such an order where it would not serve the interests of justice.

How Offers to Settle Affect Costs

A formal Offer to Settle under Rule 18 can dramatically influence both entitlement to and the amount of costs. If your offer is reasonable and the final result is as good as or better than the offer, the court may award you substantial indemnity costs from the date of the offer onward. This powerful tool strongly encourages early, realistic settlement.

Offers to Settle are protected by settlement privilege and must never be referenced in pleadings or evidence on the merits. Doing so can result in the pleading being struck, in whole or in part.

If your matter is heading to a motion or trial (even if uncontested), serving a carefully drafted Rule 18 Offer to Settle is often a smart strategic step. Your lawyer can prepare one tailored to strengthen your position on costs.

What This Means for You

Understanding the costs regime helps you appreciate the real financial stakes of family litigation. By remaining reasonable, responsive, and settlement-focused, you not only improve your prospects of success but also position yourself favourably when costs are determined.