We’ve discussed how to keep your divorce fees down in our previous post, so we’re going to delve deeper into how much matrimonial lawyers charge. Knowing the pricing structure could help you decide on how to save some more dollars, or rather, lessen the financial casualty the breakdown of your marriage caused.

Most lawyers bill you by the hour, so if they charge $200 per hour, it will cost you $2,000 for 10 hours.

But most full-service lawyers would want some payment upfront, and this is called a retainer. This amount varies from firm to firm and from state to state, but to give you a very rough idea, lawyers in the New York City area charge $10,000 to $20,000 for a retainer. That’s just getting started so if you have a long and complicated case, it will truly cost you thousands of dollars.

After you pay the retainer, your lawyer will subtract the hourly rate until the case is over or when the retainer amount is depleted. You could either sign another retainer or just pay your lawyer by the hour that is billed to you weekly or monthly.

Will my lawyer try to milk more money by prolonging my case?

Ethically lawyers are not supposed to do this and it could be to their detriment if they did so. By dragging out a case, they put themselves at risk if the client is unable to pay such a big bill. Whatever doesn’t get paid is written off and, in effect, reduces a lawyer’s hourly rate going forward. There are rules in place, so don’t worry. In fact, there are incentives for lawyers to finish their work within the amount of time covered by the retainer so they get their full hourly rate.

How much time is needed to close a divorce case?

It is hard to predict how much time will be needed, so you can calculate how much money you need to set aside. The retainer is a very rough ballpark and optimistic figure.

If you have a fairly straightforward divorce where you and your ex agree on all issues, the lawyer only needs to draft the legal documents, make sure you understand them, get them to your ex-spouse’s lawyer, and then, submit them to the court. If you or your spouse clash over many issues, then you should expect a very huge bill as negotiation will take up a lot of your lawyer’s time.

What should be in the retainer agreement?

In any retainer, there should be clause that says the firm will return you a refund if the fees are not used up.

The agreement should also state what happens when the retainer is used up — is another lump sum required or will you be billed on a monthly basis?

Like any legitimate contract, you should be able to bring it home to read all the fine print before signing it.

You should be invited to call and ask any questions you have. As eager as you might be to sign the retainer and write out a check, hold back until you read the agreement and thoroughly understand what it says.

What should you look out for in the fine print?

Your agreement should not only flesh out your lawyer’s hourly rate but also others who may assist in your case, like junior lawyers and paralegals.

Your retainer should also outline what other expenses will be incurred, such as photocopying, courier services, and court fees to name a few. You should take note if these bills be deducted from the retainer or treated separately.

Also, look for a clause that tells you how you will be kept informed of the bill as the retainer dwindles.

Do watch out for any lawyer who demands that you put up assets or your house as collateral in the event you cannot pay the bill. Don’t give up something you can’t afford to lose.

Related posts:

1. Britney’s lawyer says K-Fed should pay his own legal fees
2. K-Fed splashes out big money: good or bad idea during a custody battle?
3. How to keep your legal fees down during a divorce

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