Many people think that you need a lawyer only when you want representation before a court. You need a lawyer for more than that; basically, it would be best to have a lawyer anytime you wish to make any significant financial or social decision. This can be purchasing an asset, getting into a business partnership, adopting a child, or getting married. When getting an attorney, you also think about paying them. There exist various payment options depending on the legal representation you need. Here is an in-depth guide on how to pay a lawyer.
Contentious and non-contentious representation
Paying an attorney for their services can be broken down to whether they are offering contentious or non-contentious representation.
Contentious representation is where you need legal services for court hearings
Non-contentious representation is where you need representation in matters where courts are not involved, like a tribunal or financial and social issues
The legal representation you are looking for notwithstanding, you should start by asking the attorney to be clear about the amount of payment they expect for the legal services. If you feel that what they are quoting is beyond your means, you should find another lawyer. You don’t want them suing you for failure to settle your legal bills.
Methods to pay your lawyer
1. Hourly rate
Hourly rate is one of the most prominent ways to pay a lawyer for either contentious or non-contentious legal advice. The attorney with more experience will charge a higher hourly rate, and they will leverage their expertise to do the work faster. For contentious matters that may take years to complete, paying an hourly rate may not be your best option. This method favors cases that don’t take a long time to conclude.
2. Flat Fee
You should consider paying your lawyer a flat fee if the legal representation they are about to provide you is a one-time thing. Let’s say you want your will written or presentation when purchasing real estate; pick a flat fee. It may also work for a one-time contentious representation like appearing in court for a misdemeanor traffic violation.
3. Contingency fee/ Damaged-based agreements
Contingency fee payments are popular for individuals pursuing contentious or non-contentious matters where one expects to receive damage payments or compensation. Here, the lawyer will take a percentage of the settlement as their legal fees. The attorney’s percentage will vary depending on the difficulty of the matter at hand. This option can work for you if you don’t have sufficient money to hire a quality lawyer to pursue your settlement claim case.
4. Prepaid plans
When you take prepaid plans to pay for a lawyer, you will be paying a certain amount to them monthly or so for the duration of your legal relationship. As a result, whenever you are in a matter that requires legal representation, they will come to your aid. Then, you won’t have to pay them any extra money for the legal services they offer. This option is excellent if you are in a line of work or have a lifestyle where you are bound to need legal representation often.
5. Retainer
When seeking legal service from an attorney, they may ask you to pay them a retainer. Here, you pay the attorney part of your estimated legal costs before they start working on your matter. The payment is supposed to cover the initial legal expenses of the case and a sign of good faith from you to your lawyer. Deposit the retainer in a separate account to avoid expenditure confusion with the lawyer’s main account.
6. No win, no fee agreements
As the name suggests, the no win, no fee payment agreement option means that you only get to pay the lawyer if they win the case. Despite this, you will still have to cover the cost of court fees and other minor services related to the legal representation provided. Sometimes, this payment option is utilized alongside damage-based agreements.
Detailed bill vs. summary bill
Your lawyer can send you two bill types once they have offered legal services, a detailed bill, and a summary bill. The former indicates the details of the cost of the legal services, while the latter gives the summed-up costs of the legal services with no details
No matter the kind of payment method you opt for, except maybe for the prepaid plans and flat fee, it’s best to ask your lawyer to send you a detailed bill and not a summary bill. It will help you better understand the quality of legal service you were offered in relation to the cost. Additionally, you can use the detailed bill in your defense if the lawyer sues you for not paying them.