Billing Practices for Attorneys

There are various ways that attorneys are paid depending on the specifics of the case and the arrangement agreed upon between you and your attorney. Here are the most common payment methods: 

Hourly Rates: Many family law attorneys charge hourly rates for their services, whereby clients are billed based on the amount of time spent working on their case. Hourly rates can vary depending on the attorney's experience, expertise, and geographical location. Staff members at the attorney’s office, like paralegals or associate attorneys, also usually bill by the hour. On a regular schedule, typically monthly, you will receive a detailed invoice outlining all work done on your case.  You should see who did the work, what work they did, and how long they spent (usually in fractions of an hour - either 15 minute increments (0.25) or 6 minute increments (0.10)). The monthly invoice will the total of all work done for that time period and a deadline for you to make payment.

Retainer Fees: Some attorneys require clients to pay a retainer fee up front. A retainer agreement is a lump sum payment that serves as an advance payment for legal services. If you provide a retainer, your attorney then bills against that amount as work is performed and you may need to replenish the retainer when it is depleted. You will still receive monthly invoices outlining all the work done on your matter and then the payment will come out of your retainer. Any unused portion of your retainer is refundable to you. For example, if you provide a $5,000 retainer up front, if the first month invoice shows $1,500 of legal work, it will be paid out of your retainer and the remaining balance will be $3,500. Most retainer agreements require you to replenish the retainer amount once it drops below a certain amount. Any remaining balance in your retainer after all work is complete is refundable to you. Similarly, if you terminate the representation before the retainer has been used up, the remainder should be refunded. The funds in a retainer agreement are the clients. There are regulations that require the attorney to clearly manage these funds in a separate trust account because they should not be co-mingled with general funds until they have been earned by providing services.

Flat Fees: In certain family law matters, such as uncontested divorces or drafting prenuptial agreements, attorneys may offer flat fees, where clearly defined services are provided for a fixed amount. Flat fees provide clients with predictability and clarity regarding the cost of legal representation. If you are considering this type of billing arrangement, you should make sure that you know exactly what services will be provided for the flat payment. There are typically limits on the legal work provided in these arrangements so be clear in your understanding before moving forward. If the work expands beyond the original scope, you will likely need to pay more.

Contingency Fees: You may have heard of contingency fee arrangements in a legal setting where an attorney represents a client for little or no cost and then receives some of the final settlement in payment.  Because the attorney's payment is contingent upon the client receiving a favorable outcome, typically a monetary award or settlement, it is not common in family law matters. You should be wary of any attorney offering contingency arrangements in a divorce matter.

Hybrid Fee Structures: In some instances, attorneys may offer hybrid fee structures that combine elements of hourly rates, retainers, and flat fees, tailored to the specific needs and circumstances of the case and the client's preferences.

Pro Bono Representation: Pro bono representation refers to legal services provided voluntarily and without expectation of compensation. Pro bono is a shortened form of "pro bono publico," meaning "for the public good."  Attorneys may offer pro bono services to individuals who cannot afford legal representation, particularly in cases involving significant financial hardship or social justice issues. (See module on Pro Bono/Self Representation). There also may be "Low Bono" options in your area where you pay a reduced rate for legal services if you have a proven need.

It's essential for clients to discuss fee arrangements with their attorney upfront and ensure they have a clear understanding of how they will be billed for legal services. Clients should also inquire about additional costs and expenses, such as court filing fees, expert witness fees, and administrative costs, which maybe incurred throughout the legal process. By establishing transparent communication regarding fees and payment structures, clients and attorneys can work together effectively to navigate family law matters while minimizing financial uncertainty.

Know that you can only do so much to control legal fees. In highly contentious situations, the obligation to respond to your spouse can sometimes cause additional expenses regardless of your efforts to keep costs down.

Finally, remember you always have a right to know what work an attorney has done on your behalf and know what you are paying for.