Attorney's Fees and Costs

It is important to both you and your lawyer that you talk about fees and costs at your initial conference. Unless fees and costs are discussed, either of you might make incorrect assumptions about what the other expects. False assumptions can lead to misunderstandings which can harm the lawyer-client relationship.

If you are concerned about the cost of your divorce, discuss with your lawyer how much you can afford to pay, how extensive the lawyer's work needs to be, and any limits you think should be placed on fees.

If you feel you can't afford the fees of the lawyer you consult, say so and ask for the names of other lawyers or agencies that can handle your case. You should make an agreement to pay fees only if you know you will be able to honor it.

Different Fee Arrangements

Fees charged by lawyers vary from state to state and community to community. Some arrangements are the: retainer, hourly fee, contingency fee, engagement fee, bonus (or results accomplished) fee, and flat fee. These terms are described in the Glossary.

Fees are based on many factors including the complexity of the case, the skill needed to perform the service properly, whether agreeing to represent you requires your lawyer to turn away other clients, the amount involved, the results obtained, the experience, reputation, and ability of your lawyer, the time limitations you impose, and the circumstances under which the services will be performed.

Written Fee Agreements

Your lawyer should ask you to sign a written fee agreement. You are entitled to an opportunity to review the fee agreement, to think about it, and to get answers to any questions you have about it. You should read and understand it. Once you sign, the fee agreement is a legally binding and enforceable contract.

Costs And Expenses

Different law offices have different procedures for handling costs and expenses. Those procedures are usually described in a written fee agreement. You may be responsible for paying out-of-pocket costs incurred for your case by your lawyer, such as photocopies, postage, long-distance calls, court filing fees, process servers, court reporters, computer time and similar expenses. You will be responsible for paying any experts that you and your lawyer decide to hire. If you have questions about costs, ask your lawyer.

Security for Payment

Your lawyer may ask you for security for payment of fees and costs in the form of a mortgage on your real estate or a lien on your property. You should carefully review and understand the security agreement and other papers. It is a good idea to review them with another lawyer before signing them. Similarly, your lawyer may ask you to have a friend or relative guarantee payment of your fees. Be sure that the details are thoroughly discussed and that you and the guarantor both understand the papers before signing them.

If You Can't Pay According To Your Agreement*

Talk to your lawyer. Most lawyers will try to resolve fee problems with clients and often something can be worked out that will satisfy both of you. Your lawyer may want some security for payment (if permitted in your state), a promissory note, or a regular payment schedule. You might be able to borrow from friends, family or an institutional lender.

There are many ways to handle a divorce. If you have instructed your lawyer to do everything possible on your behalf, you might rethink the cost of your strategy. If you revise your instructions so that your lawyer does only those things essential to your proper representation, your fees and costs may be less.

If you can't resolve the problem after talking to your lawyer, here is what might happen.

• Withdrawal Your lawyer might withdraw from your case.
• Liens Some states allow a lawyer to have a lien against your property or files until the fees have been paid. Even the states that allow liens have strict rules about how they can be enforced. Before you find yourself in this situation, you should ask your lawyer to explain the rules and procedures to you. You might also want to consult another lawyer about your rights and responsibilities as to such liens. Most states require lawyers to turn over all of the client's papers to the client when withdrawing from a case.
• Mediation If you and your lawyer can't resolve a fee dispute, you might agree to take the dispute to a mediator. A mediator is a person who meets with both of you and tries to help you work out a settlement, usually by reaching a compromise.
• Arbitration Arbitration is presenting your case to someone other than a judge who has power to decide the case. An arbitration award can be made into a court judgment and enforced. Your written agreement with your lawyer may contain an agreement to arbitrate any fee disputes. Some states provide you the right to arbitrate even if it's not in your fee agreement. Arbitration can be faster, simpler and cheaper than litigation in court.
• Lawsuits If you do not pay the fees you have agreed to pay, the lawyer has a right to sue you for the unpaid fees. In that event, the dispute will be decided by a judge or jury. Many lawyers will only sue a former client as a last resort.