How do attorneys bill in family law?  (Remember, this is in general terms, but is still a standard practice.)

 

First, it is important to understand what hourly billing is and how that rate effects your finances.

 

When you hear that an attorney bills “per hour”, what does that mean?

 

• Attorneys bill on the tenth (1/10th) of an hour.   

• There are 60 minutes in an hour, so there are 10 increments of 6 minutes to equal (=) an hour.  

• The time is expressed as “.1” for 6 minutes and “.2” for 12 minutes, etc.  

• When an attorney bills at $200.00 per hour then every 6 minutes is $20.00.  

• If the attorney spends 7 minutes on the phone with you then the attorney charges a “.2” is equal to twelve (12) minutes.  The attorney rounds-up to the nearest tenth.  

• For example, if the attorney spends seven (7) minutes on the phone then the time charged is .2, which is equal to $40.00.  

• If the attorney bills at $300.00 per hour, then .2 or (12 minutes) of time is equal to $60.00.

 

Second, it is important to know that there are two types of accounts attorney usually maintain:

 

• A general operating account, which is the Attorney’s account for business and personal income; and 

• A TRUST account is an account containing third-party funds, which may consist of other clients’ funds, as well as, your funds; these funds are held for the Client or other clients to be used for costs or for future fees; these funds held in “trust” are not the attorney’s funds, unless authorized by a fee agreement or other agreement. 

 

Third, it is important to know some terms and types of fee arrangements: 

 

• A “retainer” is a fee paid to the attorney to hire (or “retain”) that the attorney to be available for advice and legal services as agreed in writing, and retainers can have different forms.   

 

• A “General Retainer”, ensures that the attorney is available for legal services, which precludes the Attorney from taking any other cases that would conflict with the client’s interest and ensuring availability to the client; the general retainer is earned by the attorney on receipt, so, it is placed in the attorney’s general operating account.  It can be nonrefundable in whole or part. 

 

• Nonrefundable means that you will NOT get any of the retainer you pay refunded back to you, even if the attorney does not expend all of his or her time.  (See example below).

 

• An “Advanced Fee Retainer” or “Fixed/Flat Fee”, is a fixed payment for all of an attorney’s services on a matter, and this retainer is earned on receipt and placed in an attorney’s general operating account; it is nonrefundable.  

 

• A “Security retainer” is intended to secure a client’s fees for payment of future services performed on a matter and is placed in an attorney’s trust account, so that as the attorney performs services at the billable rate, the attorney transfers the earned funds from the trust account to the general operating account. 

 

Most attorneys will charge a $2,000.00 to $5,000.00 non-refundable retainer and will add the expenses of the lawsuit, such as, the filing fee and summons costs.  

 

For example, if an attorney bills at $200.00 per hour and you pay a $2,000.00 non-refundable retainer and the attorney will bill towards the entire retainer then you will have 10 hours of work from the attorney before hourly billing will commence, or you may have to replenish the retainer.  If your attorney charges $250.00 per hour, you will have 8 hours of work from the attorney.  If the attorney charges $300.00 per hour, you will have 6.6 hours.  Ask your prospective attorney for a copy of a blank fee agreement, so you know the specific terms for which you will be obligated to pay.

 

 What do I offer?  

 

In addition to the above General Retainer and Security Retainer Fee Agreements, I offer a Pay-Per-Hour legal service for Limited Scope Legal Services.  

 

You pay NO Retainer. I offer a sliding scale hourly fee arrangement.

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Limited Scope means that you pay just for the legal services you need.

Tennessee allows for an attorney to offer limited scope legal service (in Florida it is called an "unbundled legal service"), meaning you and I agree to the legal services I will provide, and you only pay for the time expended as you use my services.  For example, I charge $150.00 per hour for clients making under $50,000.00 per year and have under $50,000.00 in net assets, so if you need legal advice for an issue and my research time and response takes 1/2 hour then you are charged $75.00.  For those individuals making over $50,000.00 per year or have over $50,000.00 in net assets, I charge $200.00 per hour, so the fee for the 1/2 hour would be $100.00.  

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CALL FOR AN HALF-HOUR FEE CONSULT

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Limited Scope Legal Services are not for everyone, and we will discuss your circumstances to determine whether this is the right service for you.