KEY TAKEAWAYS

  • Lawyers fees could be hourly, flat, or contingent.

  • Lawyers' fees may vary based on the skill of the attorney, the difficulty of the case, and the time spent on the case.

  • To avoid financial surprises, clients should get written estimates of the fees.

How Much Does a Lawyer Cost?

If you are considering hiring an attorney for business or personal purposes, you should be aware that hiring a lawyer can involve various costs and fee structures. They depend on factors like the service needed, the lawyer's experience, the location, and the case's complexity. Knowing these factors can help you choose a lawyer.

Understanding Different Types of Legal Fees

Hourly Rates

Many lawyers charge hourly fees. However, according to Rule 1.5 of the Model Rules of Professional Conduct, a lawyer cannot charge, or collect an unreasonable fee or an unreasonable amount for expense. If a lawyer is found to have done this, they can be reported to the Office of Bar Counsel in your jurisdiction.
 

While the fees cannot be unreasonable, the hourly rates will vary based on experience, location, and type of case. Include typical ranges for different legal services.

Flat Fees

The Model Rules of Professional Conduct say that fees must match the local standard for similar legal services. These fees also need to be clearly expressed to the client. Putting the fee arrangement in writing is the ideal mode of communication. With this being said, lawyers typically charges a flat fee for the following services:

  • Filing a petition for expungement

  • Filing an uncontested  divorce  

  • Filing immigration petitions

  • Drafting a will

  • Reviewing contracts

  • Drafting a contract

Contingency Fees

Like flat fees, contingency fees must match local rates. You will typically see contingency fees charged in contested accidental claims, property damage cases.

Contingency fees are fees that are charges based on the outcome of the case . If your lawyer is charging a contingent fee, this fee must be communicated to you in writing. The writing must state the percentage or percentages that will go to the lawyer if there is a settlement, trial, or appeal. It must also include:

  • Any litigation and/or other expenses deducted

  • Whether to deduct those expenses before or after calculating the contingent fee.

The agreement must also notify the client of any expenses they will owe, even if they win. At the end of a contingent fee matter, the lawyer must give the client a written statement. The report must state the outcome. If a recovery occurs, it must show how the remittance to the client was calculated. 

Retainer Fees

Some lawyers may also charge a retainer fee. A retainer fee is a payment made to your lawyer to use their services in the future. It is similar to making a reservation or renting a space for a period of time. In some cases, this fee may be refundable; however in most cases this fee is non-refundable. However, once you pay it, you’ll have your lawyers' full attention for the time you paid for.

Additional Costs and Factors Influencing Lawyer Fees

Additional Expenses

Hiring a lawyer may also come with some additional cost. These cost include, but are no limited to:

  • Court fees

  • Expert fees

  • Travel expenses

  • Investigation fees

  • The cost of hiring an expert witness

  • Administrative fees

Factors Affecting Legal Costs

Whether you pay a flat fee, contingent fee or pay the hour, the cost will vary from attorney to attorney. According to the Model Rules of Professional conduct, a lawyer may charge you based on the following factors:

  •  The time and labor required, the novelty and difficulty of the questions involved, and the skill of the lawyer 

  • If taking on the case will prevent the lawyer from accepting other work 

  • If the fee is normally charged in your local area

  • If the client is expecting a quick turnaround

  • The nature and length of the case

  • The experience, reputation, and ability of the lawyer  

Why is the Cost of a Lawyer Important?

Understanding the cost of a lawyer before you enter into an agreement can help prevent unpleasant surprises or costs that you cannot afford. Some people might start working with an attorney, only to find that the fees are mounting dramatically. You don't want to put undue financial strain on yourself or your family, nor do you want to have to file bankruptcy or take other legal measures to get out of debt.

 

Expenses and court costs add up quickly, so talk to any potential lawyer in detail about expected fees and costs. Get a written estimate and make sure it includes things like delivery charges, court costs, time spent on the case by paralegals and/or legal secretaries, and filing fees. If these aren't included on the written estimate, make sure to ask. You might end up with a separate bill, unless your attorney absorbs the extra fees into the total bill.

 

It's also important to make sure that the cost of the lawyer is worth the overall cost of the case and what you could recoup. For example, if you're trying to file bankruptcy for a debt of $15,000, you probably don't want to hire a lawyer whose estimate comes in at $10,000.

Reasons to Consider Not Using a Lawyer Based on Cost 

 

Many people don't have enough money to hire a lawyer for legal help. The United States of America offers rights to its citizens, called Miranda Rights or the Miranda Warning. Under the Miranda Warning, a citizen has the right to an attorney. If he or she cannot afford one, an attorney will be provided. So, if you find that you aren't able to pay for the legal fees associated with your criminal case, you may qualify for this resource.

Low-income clients may also qualify for free legal help in certain types of cases, including divorce and landlord-tenant disputes. Attorneys and law firms might dedicate a certain percentage of their time to pro bono (or free) work for clients who need help. Search online for lawyers in your area who might offer these services, or contact the state bar association.

Other resources include:

  • Union-provided legal representation

  • Support from civil rights or advocacy groups (such as those that help victims of crimes)

  • Insurance-provided legal representation

If you don't feel comfortable with a specific attorney, don't hire him or her just because the price seems right.

Reasons to Consider Using a Lawyer Based on Cost 

How to Choose the Right Lawyer Based on Cost

Whether you pay a flat fee, contingent fee ,or hourly, the cost will vary from attorney to attorney. Your fees may be affected by, among other things, the attorney's reputation, the time spent on the case, the need for an expert witness, and travel expenses. If you're unsure if the fee is reasonable, contact your local bar association to review it.

Evaluating the Cost vs. Value of Legal Services

When determining whether the fee is reasonable, you should considering some of the following factors:

  •  The fee structure

  • The amount of time and labor that your case will require

  • The level of expertise of the attorney

  •  Whether taking on your case will prevent your lawyer from taking on any other cases

You should also weigh the benefits of a skilled lawyer against their cost.

A higher fee may be worth it if the lawyer can:

  • Get a better outcome.

  • Save you money in the long run.

  • Resolve the matter more quickly.

Payment Plans and Financial Considerations

Since hiring a lawyer may cost a significant amount of money, some lawyers may allow you to set up a payment plan,  you also might be able to sign up for a financial assistance plan or be able to obtain free advice through a local law school or bar association.

What Could Happen When You Use a Lawyer? 

When you use a lawyer in any type of legal proceeding, you now have someone on your side who understands the complex legal system. Even something that seems simple, like filing for custody or going through a divorce, can quickly become complicated and overwhelming. Courts in different states require different documentation and forms to be filed, and most people just don't have a firm understanding of these requirements.

When you work with an experienced attorney, he or she will understand what is necessary and how to handle all requirements properly and on time. Your lawyer can also help break down complicated legal forms, terms, and discussions for you. In a 1999 study conducted by the Insurance Research Council, data showed that those who obtained legal representation received 3.5 times more settlement money in personal injury cases than those who did not.

What Could Happen When You Don't Use a Lawyer?

Without legal representation, you could miss a due date for forms or documents, causing delays in your case or even a ruling that is not in your favor. The most common problem that comes up among those who don't hire lawyers is complete confusion as to what they need to do to close out the case. You could end up in limbo, not sure what to do next or where to go for help.

Steps to File

The first step in finding out how much a lawyer will cost is scheduling consultations. Some offer free consultations, while others will charge a small fee for the initial meeting. During this consultation, you should present all information relating to your case and ask for more information about billing and estimated total costs.

If you need help with how much a lawyer costs, you can post your job on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Managing and Understanding Legal Costs

Before hiring an attorney you should have a clear understanding of the different types of legal fees and the factors influencing them. If you are not clear on what you are being charged, you can always ask your lawyer to explain the fees or have the member of the bar association review the fees your attorney charged.

Frequently Asked Questions

How much will a lawyer cost for a divorce?

Some lawyers offer flat-rate pricing for simple, uncontested divorce proceedings. But when a divorce involves custody of minors, a lot of property to split, or other aspects that make it more complicated, the price may go up.

What is the average hourly rate for a lawyer?

The average hourly rate for a lawyer is between $250 and $520.

How can I find out the total estimated cost for a lawyer's services?

Before hiring a lawyer, request a written estimate for the total cost. But remember that even a written estimate is just a guess, and the fees can change depending on the outcome and duration of your case. One thing that should not change is the hourly rate. Some lawyers also accept payments toward the total cost.

How can I pay for legal fees?

Most lawyers accept standard methods of payment, such as credit cards, debit cards, checks, and cash. Your lawyer might allow you to set up a payment plan toward the total cost. Before you sign an agreement with a lawyer, find out how often he or she requires payment. Some require it monthly, while others require weekly payments toward a bill.  If payment to your attorney includes part of a settlement, make sure you understand how that will be paid after the case is closed.

How do lawyer salaries differ by specialty?

Lawyer salaries can vary a lot. They depend on specialization, experience, location, and the employer.

How does the size of the law firm affect a lawyer's salary?

The size of the law firm significantly affects lawyers' salaries. Larger firms typically have more resources available to pay larger salaries. Smaller firms on the other hand, may not be able to pay lawyers as much.