legal fees

[Dogbean]

I was wondering, how do people pay legal fees that pile up to be more than they have in their savings? Say a couple gets divorced and it gets ugly and they then realize that the legal fees are more than the cash they have on hand? How do they pay? Do the lawyers do installment plans? Do they get loans? Do the lawyers work with them? What happens?

 

[Macx]

Lawyers realize that they can't get blood out of a turnip. They will make a payment plan, or . . . they will pursue a judgement for the money and your paycheck will get garnished to pay them . . . either way, they lawyer is GONNA get paid.

 

[Dogbean]

So they'll do payment plans, and not force you to pay it all up front?

 

[Macx]

The initial retainer fee is usually all up front. Once you have a lawyer on retainer, they will accept payments. It has been my experience that it is better to pay more up front for a better lawyer on retainer. Paying more than you can afford (like a bank loan to finance the retainer) up front will often save you money down the road. Think of it like buying the more expensive reliable car Vs. the cheaper car that is in the shop all the time.

 

[Dogbean]

How aobut in a divorce case, when the husband and wife both have to hire lawers and at that time are working out of the same savings acct? That can get draining.

 

[Macx]

Yes. It will be draining. Even if you try and be as amicable as possible, the lawyers are there to take your money, they will piddle around and drain your account unless you both agree to the first set of terms and don't let them talk you into any "well maybe if" stuff. I lost 3 months and a BUNCH of cash on something as ridiculous as the placement of a comma in a sentence.

 

[BarelyBreathing]

How aobut in a divorce case, when the husband and wife both have to hire lawers and at that time are working out of the same savings acct? That can get draining.

The first thing I would say is to protect yourself monetarily. The second is to see if you can amicably sit with your spouseand discuss your current money as it is. If you have joint accounts, the last thing you want to happen is for your spouse to clean it out. Go get current statements on all accounts and bills that the two of you have. Keep track of any and all money taken out of those accounts. If you can amicably discuss finances with yoru spouse, the two of you may want to close all joint accounts and divide the money in there for each of you to start your own account. If you haven't already, start your own account, and don'tput any new money into the existing accounts. All new money/ income needs to go into your own account. If there are any kids involved, and you voluntraily pay any support to your spouse (child or spousal support) then keep record of all payments. Ask for receipts. Use check stubs or money order stubs if necessary.

I do not advocate divorce, nor am I a supporter of it in any way, but I will say that if you are going to get a divorce then it is time to start documenting everything, especially financial, and start protecting yourself.

As for lawyers, they are all different. If you have not selected one yet, I would suggest "shopping" around. Almost all lawyers will see you the first time for free, in order to find out your situation and give you an estimate of what it could cost. This is the time for you to bring all your questions, including those about payment arrangements. Not all lawyers will take them. Some want several thousand up front. You can find a good lawyer who is willing to work with you financially, and doesn't cost a lot, but you just have to really look and not be afraid to ask questions. If you already do have a lawyer, then the person you should be asking about taking payments is your lawyer.

I will say that the more that you and your spouse can amicably agree upon on your own, the less it could cost you ultimately with the lawyers.

 

[Seagal]

They definitely have a payment plan in place

 

[b.hopeful]

I have friends that had a fairly amicable divorce and they sat down with a mediator. It saved them a ton of money in legal fees.

 

[NoMoreLocusts]

In my divorce, I chose a lawyer with a median retainer and offered to do some of the ground work myself - however, since my ex had left the state, it might be a different circumstance than what you (or friends of yours) are in. My divorce should have been cut and dry but due to working through interstate and him not cooperating with signing papers and such, it was drug out and ugly. Even so, I only had to pay about $1K more than the retainer. In both cases, I took out a loan from my dad and then paid him back - as it saved the interest that a bank or the lawyer would charge. If that was not an option, the lawyers are usually willing but there is a fee each month that is a percentage of the remaining balance, such as with a past due amount on any bill. Good luck with everything. As others have said, the best thing would be to try a mediator or figure out a way to do it as amicably as possible.