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Family

What happens if a party cannot afford the costs awarded against them?

TSL Written by the Treadstone Law team· Updated August 2026

An inability to pay doesn't erase or reduce a costs order simply because the paying party finds it difficult — the debt remains owed and enforceable, and the court generally won't excuse payment purely on the basis of financial hardship after the order has already been made, though hardship can sometimes be a relevant factor the court considers before deciding the costs amount in the first place. Once ordered, a costs award functions like any other debt, and the party who's owed the money can pursue standard enforcement tools if it isn't paid voluntarily.

That said, a party who genuinely can't pay a lump sum all at once may be able to negotiate a payment plan or installment arrangement directly with the other party, since a structured, reliable partial payment arrangement is often more practical for everyone than aggressive enforcement action against someone with limited assets or income. Ignoring the order rather than addressing the situation proactively tends to make things worse, both because enforcement steps can add further cost and because it can affect how the court views that party's conduct in any future disputes in the same case. Anyone facing a costs order they can't pay should get legal advice on realistic options.

Key takeaways

  • Inability to pay doesn't erase a costs order; it remains an enforceable debt.
  • Financial hardship can be a factor before a costs order is made, but not typically after.
  • A negotiated payment plan is often more practical than aggressive enforcement for both sides.
  • Get legal advice on realistic options rather than simply ignoring an unaffordable costs order.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone family lawyer can help.
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