Fees

Don't let your divorce legal fees break the bank!

Take Control of Your Divorce Legal Fees

by Steve McDonough, Esq.

Owner of The Divorce Collaborative LLC

As if getting divorced or dealing with some other family law matter in Massachusetts were not enough, clients also have to contend with paying their legal or mediation fees.   You likely know someone who had high legal fees for their divorce.  Maybe they even shared with you how high fees added financial stress, made a difficult time even worse, and made it much more difficult to start fresh when it was all over.

Even couples with moderate incomes and assets can spend tens of thousands of dollars on legal fees.  More complex cases, or cases with very high conflict that spiral out of control can cost over six figures!

Besides staying in an unhealthy relationship, is there anything you can do to avoid out of control legal fees?

Fortunately, yes! There are a number of things you can do to help control your legal expenses.

What are the Main Variables Related to Your Legal Fees?

At TDC, we find the main drivers of total fees are based upon the following four factors:

1)  What process a couple selects to get divorced;

2)   The efficiency and skill of the law firm or mediator selected;

3)  The overall “reasonableness” of you and your spouse and of opposing counsel  (if applicable); and

4) The type of fee agreement between the client and the law firm (or mediator).

Let’s look at each one of these factors in more detail.

1.   Careful consideration of your process options

The process you and your spouse select to navigate the divorce can have a big effect on your fees.  Although there are exceptions, mediation tends to be the best value in our experience.

Unfortunately, you may not always be able to control this factor.   Perhaps you have researched carefully mediation, and are confident that it would be a good choice for your family.   Your spouse may unfortunately not be willing to explore this option and could select a “lawyer-driven” process, such as litigation.   Hello higher legal fees!

Can you control this?   Not really.  You can try to have an open discussion about this topic, but still, your spouse can veto your opinion since mediation or collaborative divorce is voluntary.

2.   Efficiency of the law firm or mediator

A law firm that has good systems in place, makes use of modern technology, and effectively uses non-lawyer support staff should have en edge over an inefficient attorney or mediator.

But wait – if you are like most people and pay for your legal services based upon an hourly rate because that is the way things have been done in the past, then this system could encourage an inefficient lawyer.  You want to get your case finished in a manner that is good for you with good results, but more time on your case translates into higher fees for you.  A fixed fee rewards the efficient lawyer or mediator, and provides you with better value, assuming the fee is reasonable of course.

Can you control this variable?  Not really.

3.   The Reasonableness of the Parties Involved

There is often a correlation between the reasonableness of the parties involved and the amount spent on legal fees.  Some of the more reasonable parties are good candidates for alternative forms of dispute resolution, including divorce mediation or collaborative divorce.

In other cases, if one person has an unreasonable position, or hires a lawyer that is overly-aggressive and submits a mountain of discovery requests, this can increase your legal fees, especially under the hourly billing model.  Why?  Your own lawyer will need to respond. For example, if your spouse’s lawyer schedules a deposition, even though you may feel as though it is clearly unnecessary, then your own lawyer will need to respond and attend the deposition, increasing your total legal expenses.

If, instead, you have a reasonable party on the other side, your divorce will likely go smoother and require less work.  Similarly, if you have reasonable positions and goals as part of your case, you have just taken care of the other half of this variable.

4.  The Type of Fee Agreement You Employ with your Lawyer or Mediator

Fixed fees, also called “value-based billing” are not common in Massachusetts divorce cases – yet; however, they are common in a number of other practice areas.  Around the country, progressive law firms are realizing the benefits of fixed fees for clients and practitioners alike.  Some firms, such as the divorce-only law Rosen Law Firm in North Carolina, only offer fixed fees, and have been serving clients effectively for years under this model.

Interestingly, some of the most sophisticated purchasers of legal services – large corporations and insurance companies for example, frequently require outside counsel to provide fixed fees.

Fixed fees may not be the best scenario for all types of legal work, but if you are concerned about being billed for every email, telephone call, or letter, you should consider a fixed fee.

I have had clients tell me they wanted to call with a question but did not even call because they knew they would be charged for our time.   This is not an optimal situation…for anyone.

At TDC, we believe clients should have a say in how they pay their legal fees.  For most matters, we offer fixed fees or traditional hourly billing.