Who Pays Legal Costs After a Family Law Motion in Ontario?

Who pays legal costs after a family law motion in Ontario?

The losing party usually pays — but it is rarely that simple. Ontario’s Family Law Rules create a framework that judges use to decide not just who pays, but how much, and whether anyone’s behaviour during the case should change the result. A 2026 Superior Court decision, Versteegh v. Kerr, 2026 ONSC 3357 (CanLII), works through each step of that framework in a way that is instructive for anyone involved in family litigation.

What is the general rule about costs in Ontario family law cases?

Under Rule 24(3) of the Family Law Rules, the party who wins a step in a proceeding is presumptively entitled to costs. That presumption is the starting point — not the end of the analysis. The court must then ask whether any of the exceptions in Rules 24(4) through 24(10) apply, such as where the case involved a novel issue or where the successful party’s own conduct was problematic. In this case, the court found that none of those exceptions applied, so the applicant’s entitlement to costs was confirmed.

When should a judge decide costs — right away or later?

Costs should generally be decided promptly, right after the step that triggered them. Rule 24(1) of the Family Law Rules signals that costs decisions should follow quickly on the heels of each court event. The court in this case rejected a request to defer the costs question until later disclosure was complete. One reason: the judge who presided over the motion is best positioned to assess what happened, and waiting risks losing that context. Deciding costs now also avoids disputes and confusion down the road.

Can one party’s unreasonable behaviour increase the costs they owe?

Yes — a party’s unreasonable conduct during the litigation is a factor the court must weigh when fixing costs. Rule 24(14)(a)(i) specifically directs judges to consider whether a party behaved unreasonably at any point in the proceeding. In this case, the respondent’s conduct was taken into account in confirming that the applicant was entitled to costs. While the court did not award enhanced (above-guideline) costs on this basis alone, unreasonable behaviour can shift both entitlement and quantum.

Does making a settlement offer affect how much costs you receive?

A settlement offer can trigger enhanced costs — but only if the final order is at least as good as what you offered. Under Rule 24(12), if a party makes a formal offer to settle and the court’s order is as favourable or more favourable than that offer, the court may award costs on a higher scale from the date the offer was made. In this case, the applicant had made a settlement offer, but the court found that the first component of that offer was actually less generous to the respondent than the order ultimately made — meaning the Rule 24(12) enhanced-costs trigger was not met. The offer was still relevant as a factor under Rule 24(14)(a)(iii), just not enough to unlock the enhanced scale.

How does a judge calculate the actual dollar amount of costs?

The court fixes costs by applying the factors in Rule 24(14), with proportionality and reasonableness as the guiding principles. Judges look at things like the importance of the issues, the complexity of the motion, the hours claimed by counsel, and the financial circumstances of the parties — including obligations like child care. In this case, the motion was described as important but of average complexity. Some of the hours claimed were found to be excessive. After weighing all the Rule 24(14) factors, including what a losing party could reasonably have expected to pay, the court fixed costs at $10,000.

Practical takeaways for family law litigants

• Costs are not automatic. Winning a motion gives you a presumption of costs, but the court still weighs your conduct, the complexity of the issues, and whether your hours were reasonable.
• Unreasonable behaviour has a price. If you take positions the court later finds were unreasonable, that can be used against you at the costs stage — even if you win on some issues.
• Settlement offers matter, but the math has to work. A formal offer only triggers enhanced costs if the court’s order is truly as good as or better than what you offered. Partial or mixed offers may not clear the bar.
• Costs are decided promptly. Do not assume a costs question will be put off indefinitely. Courts prefer to deal with costs while the presiding judge still has the matter fresh.
• Financial circumstances count. Judges consider what a losing party can realistically afford and what they could reasonably have expected to pay. Coming to court with evidence of your financial situation is not a sign of weakness — it is relevant information.

Family law proceedings involve high stakes and complicated procedural rules. If you are facing a motion or have questions about costs exposure, speaking with an experienced lawyer early can help you understand your position and avoid costly missteps. Our Ontario employment law lawyers regularly advise clients on litigation strategy and costs risk — and if your family law matter intersects with workplace issues such as a separation affecting employment benefits or support obligations tied to income, we can help you see the full picture.

For clients in the Hamilton and Burlington areas, our Burlington employment law team is available to discuss how legal proceedings — whether in family or employment court — can affect your financial and professional life.

UL Lawyers offers a free initial consultation from our Burlington office and serves clients across Ontario. If you have questions about costs in family or employment proceedings, reach out to our Ontario litigation and employment lawyers to get plain-English answers before your next court date.

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This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.