What Is an Offer to Settle?
An Offer to Settle is a legal proposal made by one party to resolve a family law dispute without going to trial. It outlines specific terms under which a case could be settled, such as child custody, spousal support, or property division.
Offers to settle are governed by Rule 18 of the Ontario Family Law Rules, which states:
“An offer to settle” means an offer to resolve one or more claims in a case, motion, appeal, or even before a case is started.”
This means that you do not need to file a court case to make an offer. You can propose a settlement at any time before or during litigation.
Why Should You Consider an Offer to Settle?
An Offer to Settle can be beneficial for both parties because:
- It saves time and money by avoiding lengthy court battles.
- It gives parties more control over the outcome rather than leaving it up to a judge.
- It can lead to better cooperation, especially when children are involved.
- Courts may penalize a party who refuses a reasonable offer and later loses at trial.
Key Legal Requirements for an Offer to Settle
🔹 Who Can Make an Offer?
Any party in a family law dispute, including cases related to divorce, separation, child custody, or support, can make an offer.
🔹 When Can You Make an Offer?
You can make an offer at any stage—before a court case starts, during litigation, or even during an appeal.
🔹 Does It Have to Be in Writing?
Yes. An offer must be in writing and signed by the person making the offer. If they have a lawyer, their lawyer should also sign it.
🔹 Are Offers Confidential?
Yes. The terms of an offer cannot be included in any court record or mentioned to the judge until all issues (except costs) have been decided.
How to Accept or Withdraw an Offer to Settle
🔹 How Do You Accept an Offer?
If you receive an offer and wish to accept it, you must serve a written acceptance to the other party before the offer is withdrawn or before the court makes a final decision.
🔹 Can an Offer Be Withdrawn?
Yes. The person making the offer can withdraw it anytime before it is accepted by serving a written notice of withdrawal.
🔹 What Happens If an Offer Has an Expiry Date?
If an offer includes a time limit (e.g., “This offer is valid until January 1, 2025”), it will expire automatically if not accepted within that period.
What Happens If Someone Accepts an Offer But Doesn’t Follow It?
If one party accepts an offer but does not follow through, the other party has two options:
✔ File a Motion to Enforce the Offer: Ask the court to turn the agreed terms into a binding court order.
✔ Continue Litigation: Proceed with the case as if the offer was never accepted.
Cost Consequences of Rejecting an Offer
Under Family Law Rule 18(14), if a party rejects a reasonable offer and later receives a court order that is equal to or worse than the offer, the refusing party may be required to pay the legal costs of the other party.
For cost penalties to apply, the following must be true:
- The offer was made at least one day before a motion hearing OR at least seven days before a trial.
- The offer was not withdrawn before the hearing began.
- The party who made the offer received a court order equal to or better than the offer.
⚠ Tip: If you receive an offer, consult a family lawyer immediately. Rejecting an offer without careful consideration could result in financial penalties.
Example: How an Offer to Settle Works in Family Law
🔹 Scenario: Jane and Mark are divorcing and cannot agree on child support. Jane makes an offer for Mark to pay $1,000 per month in child support.
🔹 Mark’s Options
✔ If Mark accepts the offer, they avoid going to court, saving money and time.
✔ If Mark rejects the offer and the court later orders him to pay $1,000 or more, he may be ordered to pay Jane’s legal costs.
🔹 Lesson: Offers to settle are powerful tools to encourage reasonable settlements and avoid unnecessary legal expenses.
How to Draft an Offer to Settle
- Clearly state the terms of settlement.
- Include all relevant issues (e.g., custody, support, property division).
- Ensure it complies with Family Law Rule 18.
- Specify whether the offer has an expiry date.
- Have a lawyer review the offer before serving it.
FAQs: Offers to Settle in Ontario Family Law
❓ Do I need a lawyer to draft an Offer to Settle?
💡 While not required, a lawyer can ensure that your offer is legally sound and in your best interest.
❓ Can I make an offer after my court case has started?
💡 Yes, you can present an offer at any time before the final decision is made.
❓ What if the other party refuses a reasonable offer?
💡 If they lose in court and receive the same or a worse outcome, they may have to pay your legal costs.
❓ Is an Offer to Settle legally binding?
💡 Only if accepted. If accepted, it can be enforced as a court order.
Final Thoughts: Why Offers to Settle Matter
Offers to Settle are a powerful tool in family law. They help:
- Resolve disputes faster
- Reduce legal costs
- Encourage cooperation
If you need to make or respond to an offer, contact Progressive Legal Solutions for expert guidance.
Written by Erick McKinlay