The country is facing a creeping crisis on the legal front, with everyday Australians, already struggling with the cost of living, unable to afford legal assistance when faced with a family law issue. Relationship breakdowns are devastating enough, but when you factor in the financial cost of separation and divorce, navigating the family law system is breaking the “missing middle.”
The missing middle is the term used to describe people who earn too much to qualify for legal aid, but cannot gather the disposable capital to fund long-term legal representation. What do you do when you’re one of the people living in the financial gap?
The Financial Gap
According to statistics in the Law Society of NSW Journal, between 70 and 80% of Australians can’t afford to fund a full family law case privately. When private fee structures start with an hourly rate of $330 per hour, everyday workers are in a difficult situation.
In family law proceedings, legal aid applicants are means-tested. The thresholds are set so low that even part-time workers struggle. However, if you are the victim of domestic violence, you may still be able to secure legal aid, as there are discretionary exemptions if you meet certain criteria. For example, you experienced trauma that impacts your ability to earn an income, or you are living in crisis or transitional accommodation as a result of the situation.
| The Family Law Financial Gap | |
| Legal Aid | Unable to Afford a Private Lawyer |
| Low Income | Homeowners excluded |
| No (or minimal) assets | Expected to sell assets (such as a car) to raise funds |
| Hefty private hourly rates | |
There is a systemic underfunding issue, which has led to the financial gap as we experience it today. With strict means testing, to qualify for legal aid, you need an incredibly low income and minimal assets. That means the majority of people in work, whether part-time or full-time, are immediately disqualified.
If you own a home or have a small savings pot, you are most likely to be disqualified. Statistically speaking, it is most commonly women and children who are victims of a male perpetrator in family violence situations. However, regardless of gender, most litigants are under severe financial pressure when obtaining legal advice and representation.
Weaponising the System
This financial strain is even more dramatic in situations where family and domestic violence are involved. Statistics show that at least 50% of Community Legal Centres’ clients are impacted by family and domestic violence, and this number rises to a staggering 78% for more rural centres. Many abusers utilise the court system to continue their abuse, using the system to harass the victim(s) and inflict financial harm.
This leaves people in a devastating situation. Many litigants have no other option than to access their superannuation early, using compassionate grounds, in a bid to prevent the forced sale of assets like a home or vehicle. Litigants also have to navigate multi-year legal fights that spiral into six-figure lawyers’ bills. Another tactic abusive ex-partners utilise is the self-representation route to drive up their victim’s private legal costs and waste the Court’s time.
Financial Possibilities
While there are plenty of amicable separations that breeze through the family law process, when you’re faced with a high-conflict situation or contested matters, you need to find the most cost-effective route available to you. The system may be broken, but modern law firms are doing their best to close the financial gap by offering hybrid billing models, allowing clients to use their services for specific tasks.
Typically, the more high-risk aspects of the process are court filings and representation in hearings. This can contribute to more manageable costs without the threat of financial ruin. However, there are significant risks, especially when there is violence involved, and child safety is at risk. Other law firms allow delayed payment until a settlement is reached.
If you are in a domestic or family violence situation, you can call 1 800 RESPECT to access counselling services from the National Sexual Assault, Domestic Family Violence Counselling Service.
Contact AJB Stevens For Advice
The road to freedom may be long and complex, but that’s why you need qualified legal support to help you navigate the system. The cost of keeping your children safe in the face of family violence is high, but ensuring your future is safe takes priority, and that’s where we can help.
At AJB Stevens, we believe in easing your burden so you can focus on your health and well-being while we handle the stressful details. With an empathetic and compassionate team that is knowledgeable in the family law system and has been navigating it successfully, AJB Stevens can help you protect yourself and your children.
If you are faced with separation and need legal advice, contact AJB Stevens to schedule a free consultation with a member of our team.
