When you're considering a divorce, the idea of dealing with an attorney can be intimidating. So preparing yourself with a little vocabulary lesson beforehand isn't a bad idea. Here's a list of helpful legal terms you may need to know when you're talking about legal fees with your lawyer.
Consult Fee – A fee charged by the lawyer to hear a potential client’s case. This fee can be a flat fee or hourly fee. Some lawyers don’t charge consult fees.
Costs – An expense in addition to legal fees, costs are related to the case and incurred by the lawyer. Costs vary by lawyer and may include filing fees, mileage, copies, service or papers, parking, and postage.
Experts – Under certain circumstances, divorce cases require the use of experts. Experts are an additional cost to the legal fees. Independent custody evaluators and vocation experts are two examples of experts used in court. The need for an expert depends upon the issues of the case.
Flat Fee – Some lawyers accept a flat fee for their service. Flat fees come into play when both parties have reached an agreement and seek an uncontested divorce. The lawyer can estimate the fee upfront, which allows the client to budget for the expense and not worry about racking up a bill.
Hourly Rate – In the event of a contested divorce, lawyers usually charge an hourly rate or fee. This rate ranges greatly dependent upon the lawyer’s legal experience and reputation. Most rates range between $50 and $250 per hour. Note that services provided by associate attorneys, law clerks, legal assistants and paralegals should come at a reduced hourly rate.
Minimum Billing Increments – Lawyers who charge an hourly rate do so in minimum billing increments. Increments can be charged by the quarter hour, or per 15 minutes. Increments are rounded up. Therefore, if the lawyer charges a minimum billing increment of 15 minutes and spends 10 minutes reviewing a court document, the time is billed as 15 minutes.
Minimum Fee – A minimum fee is charged as part of a specific service. An example of a minimum fee is when a lawyer drafts a petitioner. There may be a minimum fee of $200 for the draft regardless of how long it takes to complete.
Payment Arrangements – Legal fees are usually paid through monthly payments. Other payment arrangements may be available depending on the lawyer.
Retainer – Retainer fees are advance payment used towards hourly fees and other lawyer related costs. Lawyers will sometimes request a retainer to serve as a security deposit for future legal fees. Clients who have an established relationship with their lawyer or firm are less likely to be subjected to a retainer fee.
Written Retainer Agreements – Lawyers provide written retainer agreements that relay hourly fees and costs applicable to a specific case. The retainer agreement is legally binding once both parties have signed it. It does not mean the client cannot fire the lawyer. In return, the lawyer has the right to withdrawal from a case once the agreement has been signed.
