An offer to settle is a legal option available to both parties involved in a family law case in Australia, serving as a means to conclude matters without proceeding to a trial. The agreement allows the parties to resolve the case without heavy involvement from the Federal Circuit and Family Court of Australia (the court), and at times promotes a more prompt  and affordable resolution.

However, parties may choose to forego this option and proceed directly to trial. The court does not compel parties to make offers to settle or counteroffers, but the benefits of engaging in this making or taking offers to settle include cost savings and avoidance of the stress, time, and expenses associated with court proceedings.

The advantages of making offers to settle

Making offers to settle can spare you from incurring additional expenses on your case and you can avoid entering a protracted legal battle. Making the decision to settle reduces costs and offers a more effective way to resolve family law disputes. 

The advantages of making offers to settle also extend beyond financial considerations. Both The Federal Circuit and Family Court of Australia acknowledge that settling disputes outside the courtroom can have positive effects on the emotional well-being of the parties involved, especially in family law matters. Timely resolution through settlement can minimise the emotional toll associated with prolonged legal battles, and is especially at times in the best interests of the children and families affected by the legal proceedings.

How do I make an offer to settle?

Typically, the court does not actively participate in the offer and counteroffer process. Instead, it encourages the involved parties to voluntarily make offers to settle, emphasising the importance of resolving family law cases in a timely and cost-effective manner. 

Any offer to settle, regardless of whether it covers all or just some of the case’s issues, must be recorded in writing. It is important to emphasise that the settlement negotiating process is discrete in nature and that written offers should not be submitted to the court.

To ensure the effectiveness of offers to settle, Parties must follow the deadlines set forth in the Family Law Rules. Rule 10.18 emphasises that an offer to settle remains open for acceptance until the allotted time or until a reasonable period has passed. This clause underscores the importance of clear communication and diligence in the negotiation process, allowing both parties enough time to evaluate and respond to settlement offers.

When can I make offers to settle?

In the context of Australian family law, the capacity to make settlement offers is not limited to particular stages of the judicial proceedings. According to the Family Law Rules (Rule 10.05), parties have the flexibility to make offers to settle at any point in the legal process, whether it be before the court issues an order to dispose of the case or during an ongoing case. Parties are empowered to initiate offers to settle even before formal court orders are issued.

When can I accept an offer to settle?

The Family Law Rules (Rule 10.13) explicitly affirm The right of parties to accept an offer at any point up until the opposing party formally withdraws the proposal or until a court judgement is rendered. This flexibility allows parties to consider settlement options until a definitive legal decision is reached.

Can a party withdraw the offer?

The withdrawal of an offer to settle is contingent upon the nature of the offer, whether compulsory or non-compulsory. In instances where the offer is non-compulsory, the party extending the offer has the prerogative to withdraw it at any time by delivering written notice to the other party involved. 

On the other hand, when an offer is deemed compulsory, The Family Law Rules (Rule 10.15B) outline that if a party wishes to withdraw the offer, they are only permitted to do so by presenting another genuine offer to settle. 

Compulsory offers to settle

In property and parenting cases, it is mandatory for a prospective party to make an offer to settle before initiating court proceedings, adhering to pre-action procedures that encourages resolution before resorting to litigation.

Empowering Resolutions: Consult a Legal Professional for Informed Guidance

In navigating the intricacies of family law in Australia, understanding the significance of offers to settle is crucial for a streamlined and cost-effective resolution. To gain comprehensive insights tailored to your unique circumstances, consider consulting a legal professional specialising in family law. By seeking expert guidance, you empower yourself to make informed decisions that align with your best interests and contribute to a smoother resolution process. Don’t hesitate—reach out to a legal professional today and take proactive steps towards resolving your family law matters efficiently and effectively.

About Quill Legal

At Quill Legal we innovate, educate, and plan to evoke excellence and confidence. Our principal solicitor, Shams, and his team are focused on delivering an honest, first-class service. With Quill legal by your side, you have lawyers who will passionately listen, advise and advocate your rights from start to finish.

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