Can You Recover Legal Costs in Financial Remedy Proceedings?

A recent decision has highlighted that, although the general rule in financial remedy proceedings is that each party pays their own legal costs, the court can make a costs order where a party’s conduct during the proceedings justifies it.

When can the court order one party to pay the other’s costs?

The court will generally start from the position that there should be no order as to costs. However, it can depart from that position where one party has conducted the proceedings unreasonably.

Factors that may be relevant include:

• failing to comply with court orders;
• failing to provide full and frank financial disclosure;
• unnecessarily pursuing or defending issues;
• causing avoidable hearings or additional costs; and
• failing to negotiate openly, reasonably and responsibly.

Recent case: TH v AR & Anor [2026] EWFC 262

A significant recent example is TH v AR & Anor [2026] EWFC 262, where the court ordered the wife and her father to pay £525,000 towards the husband’s costs.

The case illustrates that the court can make a substantial costs order where a party’s conduct has unnecessarily increased the cost and complexity of financial remedy proceedings.

The decision also reinforces the importance of sensible negotiation and compliance with court directions. Parties should not assume that the usual “no order as to costs” approach means that their litigation conduct will have no financial consequences.

What does this mean in practice?

The fact that one party is successful in financial remedy proceedings does not, by itself, mean that the other party will have to pay their legal costs.

However, where there has been unreasonable conduct, the court has the power to make a costs order. The position can also be different in relation to certain interim applications, where different costs principles may apply.

The safest approach is therefore to comply carefully with court orders, provide full financial disclosure and engage constructively in settlement discussions throughout the proceedings.

If you are involved in financial remedy proceedings and are concerned about your legal costs, it is important to obtain advice about your particular circumstances and the potential costs consequences of the way your case is conducted.

How can we help?

We understand that it can be difficult to deal with the financial matters on a divorce. Our team of family law experts can offer guidance and support to reach the right outcome for you.  Please speak to a member of our family team on 01926 422 101 or leamspa@fieldoverell.com