The hidden costs of divorce cases–and how to avoid them

Divorce is stressful enough. Here are our tips for making sure finances don’t complicate things further.

What's Inside

What's Inside

Getting divorced is never fun, but there’s one thing that can make the process feel even more daunting: a surprise bill. When your lawyer sends you a bill you don’t understand–or worse, can’t afford–it compounds the stress of an already tough situation. And if this is something you’ve experienced, you’re not alone: in a survey of nearly 300 respondents, all of whom have gone through divorce cases with a lawyer, over 30% reported that they were surprised by a bill they received during the process. If you’re considering working with a lawyer who works on the typical, billable model, there are a number of ways they can (and might) overcharge you

How law firms typically charge–and overcharge 

Many lawyers and law firms charge by the hour, which is called a billable model. This means you’ll be charged a lawyer or law firm’s pre-set hourly rate for every billable hour they work on your case. 

Typically, a lawyer or firm that charges in this way will also require a retainer, a fee that can often range anywhere from $500 to $5,000. Lawyers subtract the cost of the billable time they work on your case from the retainer fee, but many people find that it dwindles surprisingly quickly. 

It’s standard practice for lawyers to keep track of their time every six minutes (or one-tenth of an hour) and bill accordingly. Unfortunately, some lawyers take advantage of this model. In fact, the California State Bar once alleged that 10-30% of lawyers over-bill their clients. 

Let’s use a lawyer writing an email as an example. Your lawyer may take five minutes to send you an email with a case update. But if they get caught up in a non-work related conversation with a colleague or spend time dealing with a tech issue that requires IT before hitting send, they may inadvertently bill you for that time, too. And with the average hourly rate of a New York-based lawyer sitting between $76 and $506 per hour (though some lawyers rates are far higher, with associates at Big Law firms charging well into the thousands per hour), that “bill-padding,” as it’s known, could add up to a hefty additional fee. 

There’s also the concept of bill-churning, which came to light about a decade ago during a court case involving a prestigious law firm. Bill-churning is when a lawyer or firm creates unnecessary projects for or adds unnecessary associates to an existing case. For example, if your lawyer asks you to jump on a call, but when you join the call, there are multiple associates listening in as well–it may be the case that each one of them is billing you for that time. In many cases, there’s nothing that legally prohibits a  law firm from engaging in this practice, but it’s not fair to you, necessary for your case, or easy on your wallet. 

Unethical and unclear billing practices are one thing, but what about the completely fair but totally unexpected costs of divorce lawyers? In most cases, these are the out-of-pocket legal expenses, meaning the relevant personal expenses lawyers incur while working on your case. One of the biggest culprits for fees in this area is transportation, which is why it can be good to work with a local lawyer wherever possible. You’ll need to work with a lawyer who’s licensed to practice law in the state you’re getting divorced in no matter what, but it’s also a good idea to make sure they don’t live hours away from your county court or anywhere that would require them to make long drives to represent you–they may well bill you for transportation costs, whether that’s gas or a car service. 

Lawyers can also charge for printing copies of documents, as well as postage for anything they need to send to you or the opposing party in your case for signature. To avoid this, you can ask at the outset of your case that your lawyer send as many documents for digital signature as possible. Digital signature platforms like DocuSign typically let you sign a number of documents for free, which could save you shipping costs throughout your case. 

How to check if you’re getting overcharged–and when to dispute

If you’re already working with a lawyer who charges by the hour (and many of these lawyers charge hefty upfront retainers, too), there are a few ways to ensure the costs don’t get too out of control–but they’ll require a lot of attention and effort on your part. 

First, know your rights: in most states, you have the legal right to “request and receive an itemized bill from your lawyer at reasonable intervals.” If your bill is costlier than expected, or if you received one out of nowhere, take a look and make sure the services you’re billed for feel like they match the level of legal care you’re receiving. If you look at your itemized bill and notice you were billed three hours for an email that was one sentence long, you may have cause to dispute the fee. It is worth noting that disputing a fee may require arbitration, which could mean even more bills.  

The easiest way to avoid billing issues

If you’re looking for a stress-less payment experience–and more financial autonomy, you might want to explore your options with firms that don’t operate on a billable model. Law firms like Marble operate on a pay-per-step, limited-scope basis. That means we charge you an upfront for one step of your case at a time, and we only charge for the specific services your case requires. Divorce is stressful enough–paying for it shouldn’t have to be. 

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Disclaimer: This article is provided as general information, not legal advice, and may not reflect the current laws in your state. It does not create an attorney-client relationship and is not a substitute for seeking legal counsel based on the facts of your circumstance. No reader should act based on this article without seeking legal advice from a lawyer licensed in their state.

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