Transcript
Woman: When you are going through separation or divorce, you will understandably want to ensure that a good balance is struck between the legal costs you outlay and the result you achieve.
Man: There are a few different ways in which you can arrange with your lawyer to conduct your case. Time-based fees are when your lawyer charges for the time actually spent in completing a task. Often measured in parts of an hour.
Woman: A fixed fee is when you and your lawyer agree on the fee for completing your case or for part of your case.
Man: Some lawyers do both, often called hybrid billing. They will fix particular tasks, steps, or stages of your case and charge on a time spent basis for other tasks, steps, or stages.
Woman: A fixed fee delivers certainty, but it is often not flexible. Even if the job ultimately involves less work, you will still pay the same fee. Sometimes there are exclusions, work which is not covered by the fixed fee. So it is important to understand what is included in the fixed fee and what is not. A timed-based fee is less certain but is flexible. If the job ultimately involves less work, you will pay less.
Man: The hybrid model can potentially deliver both flexibility and certainty. Defined parts of your case can be at fixed costs, and other parts, based on time actually spent.
Women: Whether certainty or flexibility is more important to you will be an entirely personal decision. Whatever model is attractive to you, be informed.
Man: If your lawyer charges a fixed fee, it is important to understand how that fixed fee is calculated. If the fixed fee is simply a projection of time, plus a margin to cover unexpected events, it can work out more expensive than time-based billing. Accordingly, ask yourself, “What if any contingencies which are built into the fixed fee never happen?” Will you have paid a premium? In short, be sure that a benefit is actually being received by agreeing on a fixed fee.
Woman: If your lawyer charges on a time spent basis, it will be important to ensure that your lawyer is efficient, the time spent is recorded and justifiable, so that you understand what work is being done at what cost. You will also want to know that your lawyer is only working on tasks or moving in a direction which you have approved.
Man: In many cases, an experienced lawyer can deliver a superior outcome, adopting the time-based model in comparison to a fixed fee. Because their experience enables them to identify the work requiring attention and to complete it with economy. It is this experience that you’ll be looking for. Poor outcomes can be the result if this efficiency is not present.
Woman: Whatever the fee structure to which you commit, look for value. Either that the fixed fee is beneficial to you and that you understand how it is calculated, and what is included, and what is excluded, or that time-based work is being completed by an experienced lawyer with efficiency.
