Divorce Attorney Payment Arrangements
Few people plan to hire a divorce lawyer. So when you encounter the need to hire a lawyer for a divorce, one of the first questions you may have concerns how to pay for the costs of hiring legal representation. Perhaps you have savings or family support to pay a divorce lawyer’s hourly fees. But if not, you may be wondering if your lawyer can take your case on contingency. Can a divorce lawyer get paid a percentage of the divorce settlement?
Contingency Fee Arrangements
A contingency fee agreement describes a payment arrangement in which a lawyer’s fee is dependent upon obtaining a successful outcome for the client. Typically used in personal injury cases or some types of business litigation, contingency agreements permit a lawyer to receive a specified percentage of any monetary recovery achieved in the case. Because the attorney is compensated according to a share of the client’s monetary results, such agreements align the attorney’s financial incentives closely with the client’s interests.
Are Divorce Lawyer Contingency Fees Permissible in Virginia?
In Virginia, contingency fee arrangements for divorce matters are explicitly prohibited. Rule 1.5(d) of the Virginia State Bar’s Rules of Professional Conduct explicitly states that attorneys may not charge or collect contingent fees in domestic relations cases where payment is contingent upon securing a divorce or upon the amount of alimony, child support, or property settlement obtained for the client. A divorce lawyer contingency Virginia arrangement is not permitted within the applicable professional standards governing attorney conduct.
By forbidding contingent fees in divorce cases, the Virginia Bar aims to reduce the incentive to engage in unnecessary conflict, and preserve the sanctity and emotional stability of familial relationships, which are heavily involved and deeply affected in divorce proceedings. A contingency fee agreement in divorce could arguably promote extensive litigation in issues such as property division, alimony, or child support, each of which dramatically impacts family structures. Therefore, such contingent arrangements are seen as being in conflict with the core values and ethical duties of lawyers practicing family law.
Alternative Payment Structures for Virginia Divorce Lawyers
Despite the explicit prohibition of contingency fees for divorce cases in Virginia, it is important for clients and attorneys alike to understand the viable alternatives for structuring payment agreements.
One common option is hourly rate billing, the most prevalent and familiar payment arrangement in family law matters. This method involves an agreement between client and attorney in which the client compensates the lawyer for each hour spent on the case. Hourly billing ensures transparency, as the lawyer provides detailed periodic statements clearly outlining time devoted to each task, from drafting pleadings and attending hearings to negotiating settlements.
Alternatively, some firms offer flat-fee or fixed-fee arrangements for uncontested or simple divorce cases. Under a flat-fee arrangement, the parties agree at the outset on a specific, predetermined fee to cover the entire legal service, simplifying budgeting and billing.
Finally, a retainer payment approach is frequently employed, particularly in contested or more complex divorce cases. In these arrangements, a client deposits an upfront amount (retainer), held in a trust account, upon hiring legal counsel. As legal work proceeds, the attorney withdraws fees from this account to pay for services rendered. Clients replenish retainers periodically to maintain proper funding throughout litigation.
A divorce lawyer might bill their client by the hour for their work – but not seek collection for payment until after the divorce is settled and property is divided.
Contact Our Divorce Lawyers
While contingency fees are not permissible in Virginia divorce cases, we strive to make it affordable and reasonable when hiring our Roanoke divorce lawyers. When you contact our firm, you will not have to guess at the cost of hiring counsel for your case. We understand that few budget for hiring a divorce lawyer. Our rates are reasonable and affordable. We will work with you on hourly billing, flat fee billing, or fixed fees, to ensure that you have representation to protect your rights. Contact us today to schedule a consultation.