Can a family court costs order be paid in installments instead of a lump sum?
Yes, in appropriate circumstances. While a costs order is generally expected to be paid promptly once made, a court has discretion to allow payment in installments rather than requiring a single lump sum, particularly where the paying party can show a genuine, demonstrated inability to pay all at once, and where a structured payment plan is a realistic way to actually get the amount paid rather than triggering enforcement action that might not recover much anyway.
Whether installments are ordered, and on what schedule, depends on the specific financial circumstances of the paying party and how the request is presented — a vague request for more time is less persuasive than a specific, realistic proposal supported by financial information. Parties can also simply agree between themselves to a payment schedule without needing a court order, which is often the more practical route where both sides are willing to cooperate. Anyone facing a costs order they can't pay immediately should raise the possibility of installments proactively, either with the other side directly or through a request to the court, rather than simply falling into default.
Key takeaways
- Courts have discretion to allow a costs order to be paid in installments rather than a lump sum.
- This generally requires showing a genuine inability to pay the full amount at once.
- A specific, realistic payment proposal is more persuasive than a vague request for more time.
- Parties can also agree to a payment schedule directly without needing a court order.