If you're considering hiring a divorce lawyer in New Jersey, one of the first questions you're probably going to ask is: "What is your hourly rate?"
That's a perfectly reasonable question. But there's something important I want you to understand before you start comparing lawyers based solely upon that number.
The lawyer with the lower hourly rate isn't necessarily going to cost you less. And the lawyer with the higher hourly rate isn't necessarily going to cost you more.
Let me explain.
How Do New Jersey Divorce Lawyers Charge?
Many New Jersey divorce lawyers charge for their time by the hour. That means you're generally paying for the amount of professional time spent working on your case.
That can include time spent reviewing documents, communicating with you, speaking with the other attorney, preparing correspondence, conducting legal research, negotiating, preparing court papers, reviewing financial information, appearing in court and handling the other work your case requires.
Different attorneys charge different hourly rates. There isn't one official hourly rate for New Jersey divorce lawyers, and I wouldn't choose an attorney simply because one lawyer charges less per hour than another. The hourly rate is only one part of what your divorce will ultimately cost.
Why Do Hourly Rates Vary?
A number of things can affect what an attorney charges.
Experience is one obvious factor. An attorney who has practiced family law for decades may charge a different rate from an attorney who has been practicing for several years.
Geography can matter. The size and structure of the law firm can matter. The attorney's experience with the particular issues involved in your case can matter. Overhead and market conditions can also affect rates.
There is nothing unusual about two qualified New Jersey divorce attorneys charging different hourly rates. The more important question is what you're receiving for the money you're spending.
A Lower Hourly Rate Doesn't Always Mean a Lower Bill
Suppose Lawyer A charges $350 an hour and Lawyer B charges $500 an hour. At first glance, Lawyer A looks considerably less expensive.
But what if Lawyer A spends four hours handling something Lawyer B can handle in two?
Lawyer A's bill: $1,400.
Lawyer B's bill: $1,000.
Obviously, real legal work isn't that mathematically predictable. But the example illustrates the point. Hourly rate and total cost aren't the same thing. Experience, efficiency, judgment and strategy can all affect how much attorney time your case ultimately requires.
What Is a Divorce Retainer?
Don't confuse an attorney's hourly rate with the initial retainer. They aren't the same thing.
A retainer is generally money you pay at the beginning of the representation that is then handled in accordance with the terms of your attorney's fee agreement and applicable rules.
Your lawyer bills for work performed according to the agreed fee arrangement. If your case continues and the available retainer funds are depleted, your agreement may require you to replenish them.
So if a lawyer tells you: "My initial retainer is $7,500," that doesn't necessarily mean your entire divorce will cost $7,500.
Likewise, a larger initial retainer doesn't necessarily mean the divorce itself will ultimately be more expensive.
Read the fee agreement carefully so you understand how the retainer and billing actually work.
What Are You Being Billed For?
Before hiring a divorce lawyer, understand what the attorney considers billable time.
Ask questions. How is telephone time billed? What about emails? Does the lawyer bill for travel? Will other attorneys, paralegals or staff members work on the case? If so, what are their rates? How frequently will you receive invoices? How does the retainer work? When would you be expected to replenish it? What other expenses might you be responsible for?
You shouldn't be embarrassed to ask about money. You're hiring a professional service, and you should understand how you'll be charged for it.
The Lawyer's Rate Isn't the Only Potential Cost
Attorney's fees may not be the only professional expense involved in a divorce. Depending upon your case, you could potentially need other professionals.
For example, a complicated divorce might involve a business valuation expert, real estate appraiser, forensic accountant, pension expert, custody professional or another specialist.
Not every divorce needs those things. Many don't. But if your case involves complicated assets or disputed issues, it's important to understand that the attorney's hourly rate is only one potential component of the overall cost.
Your Own Decisions Can Affect Your Bill
This is something people sometimes overlook. You can hire an excellent attorney with a reasonable hourly rate and still spend a tremendous amount of money if every disagreement becomes a legal battle.
Every phone call takes time. Every email takes time. Every motion takes time. Every discovery dispute takes time. And when your lawyer bills by the hour, time costs money.
That doesn't mean you shouldn't call your lawyer when you need legal advice. And it certainly doesn't mean you should give up something important simply because addressing it will cost money. It just means you should use your lawyer strategically.
How Can You Use Your Lawyer More Efficiently?
Stay organized. If you have five non-urgent questions, consider keeping a list and discussing them together rather than making five separate calls.
When your lawyer asks for financial records, gather them carefully rather than sending incomplete information over multiple emails.
Read correspondence before calling to ask what it says. Keep important documents organized. And before asking your attorney to take action over a disagreement with your spouse, consider whether the issue actually matters to the outcome you're trying to achieve.
Good organization won't eliminate legal fees. But unnecessary disorganization can certainly increase them.
Should You Hire the Cheapest Divorce Lawyer?
I wouldn't choose a divorce lawyer based solely upon price. Your divorce may involve your children, your home, retirement savings, support obligations, a business and other issues that can affect your life for years.
Price matters. But so do experience, judgment, communication, responsiveness and whether you trust the lawyer's approach to your case.
You should understand what the lawyer charges. You should understand how billing works. And you should decide whether the value you're receiving makes sense for your particular situation.
Ask About Fees Before You Hire
When you're interviewing New Jersey divorce lawyers, don't just ask: "What's your hourly rate?" Ask: "How do you bill?" "What is the initial retainer?" "When does it need to be replenished?" "Who else may work on my case, and what do they charge?" "What other costs might I encounter?" "What can I do to keep my legal fees under control?"
Those questions will tell you considerably more than the hourly rate alone. Because ultimately, the number that matters isn't simply what your lawyer charges for one hour. It's what your divorce costs from beginning to end and whether the money you spent was used effectively.
If you're preparing for divorce and want to understand the decisions that can affect both your case and its cost, my free Divorce Smarter Course will walk you through the major issues involved in a New Jersey divorce.
Until next time,
Steve