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To flat fee, or not to flat fee?

Wed, Dec 15, 2010

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By Kellie Bigham

In the current financial climate, clients in family law want to know how much it’s going to cost them to weather the nuptial storm. And these days, attorneys are willing to un-bundle their services and even charge a flat rate for divorce and other family-related proceedings. While this has been a common practice for divorces that are uncontested, requiring little or no court involvement, flat fees have not until recently been offered for contested divorces.

Contested family law cases, however, are often far too unpredictable to determine the cost of the case at the onset. From the opposing counsel to the mental stability of the clients, there are many variables that can turn what seems to be a simple divorce into a lengthy battle.

The straightforward consequence of fees set too high or too low is that either the attorney or the client is going to take a monetary loss. But another concern regards the effect that the flat fee could have on the resolution process.

It seems that most of the costliest cases are driven by the client’s highly charged emotions. These emotions combined with the desire—especially in this economy—to get the most value out of a “bought and paid for” attorney could hugely hinder the negotiation and mediation efforts.

Ultimately, the hourly rate is a huge incentive for clients to put emotions aside and focus on settlement. Without this incentive, manageable cases could too easily turn into wars of attrition.

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- who has written 6 posts on JDs Rising.

Kellie Bigham is a 2010 graduate from the University of St. Thomas School of Law, where she co-founded the Student Collaborative Law Society and wrote for Tommie Law News. She received her undergraduate degree in Journalism from Minnesota State Mankato. Kellie is currently clerking at a small family law firm in Edina and volunteering at VLN. When she is not searching for a full time job, her hobbies include cooking, running, reading, photography and being outdoors and on the lake.

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1 Comments For This Post

  1. Law Lacky Says:

    When I worked in family law, we split the baby. (Pun intended.) We would offer a flat upfront rate. If case exceeded 10 hours of work, we switched to an hourly billing rate. We were able to very accurately estimate during the initial consultation whether the case would exceed 10 hours based upon the amount of property involved and whether children were involved (and in some cases who the other attorney was). The retainer agreement did not include appellate work.

    I differ in your conclusion that either the attorney or the client will take a monetary loss in a flat fee scenario. A flat fee works really well if you are very focused in your practice and you know your stuff. A flat fee forces you to be efficient.

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