Separation means a lot of change. One of the big changes is in relation to finances. In the early stages of separation, while property and financial settlement are still being finalised, it can be a financially challenging time. You may feel as though your budget is tighter than it used to be and that your expenses are always more than your income. When finances are tight, the additional expenses associated with separation, like lawyers’ fees, can feel overwhelming and like the final straw.
When you need the help of a family lawyer, it is important to understand how lawyers charge and what payment options are available. Our family lawyers are always happy to chat with you and explain how fee arrangements would work for your individual situation.
Fixed fee family lawyers
All family lawyers set and charge fees differently. Some family lawyers have fixed fees for certain services, such as applying for a divorce; however, most other services, such as resolving parenting disputes and property settlement, are charged at an hourly rate based on the time required to achieve the outcome.
How do I find out how much a family lawyer costs?
A family lawyer has a professional responsibility to disclose information about the fees charged for services, when the fees are going to exceed a certain amount. In Queensland, the threshold amount is $3,000.
Information needs to be provided about how fees are charged, as well as an estimated range of the likely fees. This information is required to be provided by way of Costs Disclosure and a Cost Agreement. It is important that you carefully read the Costs Disclosure and Costs Agreement before signing and ask questions if you don’t understand anything contained in the documents.
How do I know if a family lawyer’s fees are reasonable?
It can be helpful to get fee estimates from a couple of different family lawyers so you can compare the amounts and make an informed decision. When comparing estimates of fees, it is helpful to consider the following:
- Whether the law firm is a general practice law firm or whether they practice exclusively in family law (a general practice law firm may at face value offer lower rates, but their total fees may be higher in the end because they don’t have the specialised skill and experience of a family lawyer)
- The level of skill and experience of your family lawyer (less experienced lawyers generally charge less, while more experienced and senior lawyers charge more – the appropriate skill level required will depend on the individual circumstances of the situation)
- The scope of the work included in the estimate (it is important to make sure you are comparing like with like and that the scope of work for the various estimates is similar. For example, a lower estimate may not include the same level of work and inclusions as a higher estimate)
What are the normal payment arrangements for family lawyer fees?
Generally, lawyers require a specified amount of funds to be deposited into their trust account before they can commence work on your matter. There are special laws and rules that apply to trust accounts. A lawyer cannot access the funds in the trust account until the agreed work has been completed and a bill has been issued. You may be required to make further deposits into the trust account over the course of your matter if the funds fall below a certain amount. If funds remain in the trust account after completion of all work, they will be refunded to you.
Do lawyers do payment plans?
In some limited circumstances, family lawyers may offer alternative payment arrangements to the usual upfront payment of funds into a trust account. For example, some law firms may offer agreed payment plans, or alternatively, there may be eligibility for a deferred payment arrangement.
What is a deferred payment arrangement of lawyers’ fees?
Deferred payment arrangements may be offered by some family law firms. Sometimes the law firm will facilitate the deferred payment arrangement directly. This usually involves a higher-than-normal hourly rate being charged, which effectively amounts to interest. Alternatively, the law firm may partner with a litigation funder such as Just Fund, who pays your lawyers’ bills during your matter and is then repaid from the funds received as part of the final settlement.
Who is eligible for a deferred payment arrangement for family law fees?
Deferred payment arrangements generally aren’t offered for parenting matters. They are usually only offered in relation to financial and property settlement matters when a party is receiving an entitlement in the form of real property or a cash payment.
How can I find out more about deferred payment arrangements?
Learn more about Just Fund. You can also contact one of our family lawyers for a free 20-minute chat, during which we can explain more about deferred payment arrangements. Contact one of our experienced family lawyers for a free 20-minute phone consultation about your individual situation.