How Offers to Settle Affect Costs in Alberta Family Court

Most family disputes in Alberta settle before a judge makes a final decision. Along the way, one side often sends the other a written offer. If you are on either end of one, you probably want to know what happens to legal costs if the offer is accepted, ignored or turned down.

This article explains, in general terms, how offers to settle can protect you from a costs award or expose you to one in the Court of King's Bench of Alberta. Every case is different, so a lawyer can tell you how these rules apply to your facts.

This article covers the law of Alberta.

Why costs and offers are connected

Costs are a payment one side may be ordered to make toward the other side's legal expenses. The general starting point is that a successful party to an application, a proceeding or an action is entitled to a costs award against the unsuccessful party.

That entitlement is not absolute. It is subject to the Court's general discretion, the assessment officer's discretion, any specific rule or enactment on who pays costs, and the special rule for matters heard without notice. So costs in family cases are discretionary, not automatic.

An offer to settle matters because it shows the Court what each side was willing to do and when. A party who turned down a reasonable offer and then did no better in court may look different from one who made a fair offer that was ignored.

What the Court may weigh when it decides costs

When deciding on costs, the Court may consider the result and each party's degree of success, the amount claimed and the amount recovered, the importance of the issues, and the complexity of the action. It may also consider conduct that shortened or lengthened the action and any other matter related to costs.

In deciding whether to impose, deny or vary a costs award, the Court may also look at any settlement offer, whether or not it complies with Part 4, Division 5 of the Rules. That means an offer does not have to follow the formal rules to be considered. How much an offer matters in your case depends on the facts, so it is worth confirming with a lawyer.

• The result and each party's degree of success.
• Whether anyone took unnecessary steps or conduct that delayed or lengthened the case.
• Whether someone refused to admit what should have been admitted.
• Whether a rule or an order was breached.

How an offer can protect you or expose you

Because the Court has a wide discretion, an offer can work in more than one direction. How an offer affects costs in your case depends on your situation, so it is worth confirming with a lawyer.

Where the party ordered to pay is also owed costs, the Court may net the amounts by deduction or set-off.

What a costs award can look like

After considering the factors, the Court may order one party to pay the other the reasonable and proper costs incurred, or any amount the Court considers appropriate. That can include an indemnity for the party's lawyer's charges, or a lump sum instead of or in addition to assessed costs.

Reasonable and proper costs can be all or part of the costs, with or without reference to the Schedule C tariff. They can also be a multiple, proportion or fraction of a Schedule C amount, costs on a particular issue or application, or a percentage of assessed costs.

Unless the Court orders otherwise, reasonable and proper costs leave out the costs of certain dispute resolution processes under rules 4.16 and 4.18, unless there was serious misconduct, and certain fees for investigations or for assisting at a trial or streamlined trial. If you are self-represented, the Court may in appropriate circumstances order a payment equal to all or part of the Schedule C fees, but you are not automatically entitled to them.

Settling and costs: timing and paperwork

Costs can be part of a settlement. A costs award may be made as part of a settlement where one party agrees to pay costs without the amount being fixed. If no costs award or assessment order is made when the matter is decided, either party may ask an assessment officer for an assessment appointment date.

A party entitled to costs who wants or must have them assessed prepares a bill of costs in Form 44, itemizing fees, disbursements and other charges and signed by the preparer. Because of this, it is wise to deal with costs expressly in any settlement, rather than leaving them open.

What to do next

• Put every offer in writing and keep the date it was sent and any reply.
• Say clearly whether costs are included in your offer, and how they are to be handled.
• Compare any offer you receive with the realistic range of outcomes if the case went to a decision.
• Ask a lawyer whether your offer meets the requirements of Part 4, Division 5 of the Alberta Rules of Court before you send it.
• Check the current Court of King's Bench family practice items, since processes changed in 2026.
• If you are self-represented, ask about help with forms and options from a family court counsellor.

A short conversation with a lawyer before you send or answer an offer can help you understand how it might be viewed on costs later.

Frequently asked questions