Protecting assets from cost order

[polgara]

Just wanted to ask if someone knows how to protect my house against a cost order.

I can't afford to pay a lawyer for custody my trial. Even worse, if I lost custody of my children and was ordered to pay cost, would I be forced to sell my house to pay my ex's lawyer fees when I can't even afford a lawyer for myself? Will I be left homeless? I have a huge mortgage on the house, no savings, no RRSP, but there is some equity.

[Janus]

I get the feeling that you can mostly ignore a costs order as long as you plan on not going back to court.

If you intend to go back to court, and you have an unpaid costs order, that makes things a little tricky.

Probably a better plan would be to submit a generous offer to settle, so that you do not lose your case.

[Tayken]

I get the feeling that you can mostly ignore a costs order as long as you plan on not going back to court.

Unless a judge makes an order for the portion of those costs to be collected through FRO due to child support.

If you intend to go back to court, and you have an unpaid costs order, that makes things a little tricky.

Correct, there is no easy way to collect costs from someone who owes it. The best is what happened in WD's case... Other parent has to pay costs prior to bringing another motion. Interest keeps growing on that costs order but, no way to collect blood from a stone.

Probably a better plan would be to submit a generous offer to settle, so that you do not lose your case.

Agreed ^^^^!!!!

[Janus]

Unless a judge makes an order for the portion of those costs to be collected through FRO due to child support.

I forgot about that neat little trick. It is so incredibly unfair. Either allow all family law cost orders to be enforced, or none. Personally, I would prefer all, but none might be easier.

One side also gets to use legal fees as a tax deduction, but not the other.

Correct, there is no easy way to collect costs from someone who owes it. The best is what happened in WD's case... Other parent has to pay costs prior to bringing another motion.

Even that doesn't automatically happen all the time. The courts don't want money to stop a parent from representing the best interests of their children. Ironically, enforcing cost orders would probably help most children, because it would stop lots of damaging litigation.

[tilt]

I have also seen (rarely) a Certificate of Pending Litigation registered against assets. but I believe there would have to be after a history of non-payment or hiding financial disclosure.

[Kinso]

An unpaid costs award is like any debt, it can be enforced against any assets you have in Ontario. This includes bank accounts, investments, and real estate.

A cost award of $2,000 is rarely worth the effort. But after a trial the costs award could be significant.

Take a reasonable settlement position to reduce your risk.