Tag: Lower Divorce Attorney Fees

Temporary Attorneys’ Fees

Posted by Ron Kauffman on

Canada’s Financial Post has an article explaining temporary attorneys’ fees to get you through a divorce. The process is similar in Canada to here, but then again, there are important difference in attorneys’ fees you should know about.

As the Financial Post asks:

What happens when the parties are not in an equal financial position? As contingency fees are not available in family law, how can a spouse with few assets or little income retain the professionals?

In Canada, the answer is found in the Family Law Rules, which say:

A Court can make an order that a party pay an amount of money to another party to cover part or all of the expenses of carrying on the case, including lawyer’s fees.

The test before interim disbursements may be granted is to show that the case cannot proceed unless the funds are granted. In addition, the party must show that their position is sufficiently meritorious to warrant pursuit, and that special circumstances exist to allow the Court to exercise this extraordinary remedy.

Florida Attorneys’ Fees

Costs can be high in divorce in Florida too. One way to level the playing field of high divorce costs in Florida is to ask one side to pay for attorneys’ fees.

In Florida attorney’s fees may be awarded in a divorce, including enforcement and modification proceedings, separate maintenance, custody and support proceedings and appellate proceedings.

The court may from time to time, after considering the financial resources of both parties, order a party to pay a reasonable amount for attorney’s fees, suit money, and the cost to the other party of maintaining or defending any proceeding.

I’ve written about reducing attorneys’ fees through various means before. The purpose of awarding attorneys’ fees is to make certain that both parties in a divorce proceeding “will have similar ability to secure competent legal counsel.”

There are also fees for frivolous cases. A reasonable attorney’s fee can also be awarded to the prevailing party if the court finds that someone brought a claim that was not supported by the material facts the then existing law to those material facts.

Leveling the Playing Field

While temporary attorneys’ fees may sound like a windfall for the recipient spouse, in many complex matters, one spouse alone may spend $50,000 or more on experts’ fees, with legal fees being in excess of that amount in a divorce.

When making an order for interim disbursement, the court has discretion to decide both when the payment must be made by the wealthier spouse, and the way in which a payment will be accounted for.

Often in Canada, the payment is advanced against a future equalization (property) payment owing by the wealthier spouse. In many cases, it is clear early in the litigation that a property payment is owing — the only issue is “how much.”

Courts also have the discretion to order that the payment of attorneys’ fees be advanced as a loan to the recipient spouse, or on account of spousal support.

And sometimes, a court will simply order payment to be “uncharacterized,” meaning that whether or how the payor is credited will be determined in the future by the trial judge.

The Financial Post article is here.

 

Paying for Divorce

Posted by Ron Kauffman on

A joke floating around the internet asks:  “Do you know why a divorce cost so much? Because it’s worth it.” The joke, although in bad taste, poses another interesting question: how do you protect yourself from today’s high divorce costs?

An Un-level Playing Field

As Forbes magazine recently reported, divorce is never easy. It represents the end of a way of life you have known for years.

Not only could a divorce wear you out emotionally, it could wear you out financially.

Even the wealthiest may not have sufficient access to capital during a divorce. Assets could be frozen during the divorce. Some turn to friends or family for capital but, for some, this is not an option and certainly it is not an easy ask.

It’s not uncommon for the spouse with the financial power during the marriage to declare war against their former partner by cutting off credit cards and hiding assets.

Those who can’t bear the divorce costs, often “surrender,” reluctantly agreeing to a sub-par settlement, all because he or she can’t afford the steadily mounting divorce costs, or can’t take the stress of protracted litigation, with someone who can afford to litigate a case to death.

Florida Law on Attorneys’ Fees

One way to level the playing field of high divorce costs is to ask one side to pay for attorneys’ fees. In Florida attorney’s fees may be awarded in a divorce, including enforcement and modification proceedings, separate maintenance, custody and support proceedings and appellate proceedings.

The court may from time to time, after considering the financial resources of both parties, order a party to pay a reasonable amount for attorney’s fees, suit money, and the cost to the other party of maintaining or defending any proceeding.

I’ve written about reducing attorneys’ fees through various means before. The purpose of awarding attorneys’ fees is to make certain that both parties in a divorce proceeding “will have similar ability to secure competent legal counsel.”

There are also fees for frivolous cases. A reasonable attorney’s fee can also be awarded to the prevailing party if the court finds that someone brought a claim that was not supported by the material facts the then existing law to those material facts.

Paying for Divorce

People are often surprised to find out that divorce costs so much, they can be shockingly expensive. Attorneys can cost many hundreds of dollars per hour and require substantial retainers up front, and then you have to add on fees for accountants, psychologists, guardians, and other professionals.

Clients often do not have the money to simultaneously engage in divorce proceedings and be able to afford living expenses such as mortgage payments, school tuition and other personal costs during the proceedings.

Divorce funding can “level the playing field,” enabling people to fund their attorney and expert fees while maintaining their standard of living. A business niche has emerged to provide financing for those without the immediate means to fund the legal battle.

This levels the playing field significantly against the well-known tactic of wealthy husbands or wives dragging on divorce proceedings and costs ad infinitum until their spouse runs out of money and are forced to concede.

With independent financing, these individuals can pursue settlements they might not otherwise have been able to attain.

The Forbes article is here.

 

Lower Your Divorce Costs

Posted by admin on

By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Attorneys’ Fees on Tuesday, January 27, 2015.

A post on lowering legal fees by a lawyer may seem contradictory, but not if your attorney is looking out you. Unless your divorce is a friendly ‘conscious uncoupling’, it can be costly. But there are a few things you can do to keep legal fees down.

The Huffington Post recently ran an article on this topic that rings true:

Shop around for an attorney.

Most states have a Board Certification process to recognize expert lawyers. Using an expert, as opposed to someone who also handles criminal defense cases, bankruptcies and slip and falls, will save money over time. Also, many attorneys offer free initial consultations. I do, and encourage people to take advantage of a face to face meeting with your attorney.

Pick Your Battles.

If you intend to argue over every sponge, plant, and towel in your possession, be prepared for an expensive bill. Fight the battles that really matter, like custody and alimony or the house.

Think Before Calling Your Attorney.

Attorneys bill by the hour. If your attorney charges $350 an hour, and you’re constantly calling, you are going to have sticker shock – Those 15-minute phone calls add up, so write down questions and make one call. You may discover you have the answer you need and avoid a call altogether.

Your Attorney is Not Your Therapist.

I recommend seeing a therapist while going through a divorce. Most insurance will cover at least a portion of that cost. Using your attorney or the paralegal doesn’t get you the help you really need and is far more expensive.

Check Your Invoices.

You should be receiving monthly invoices from your attorney. If not, ask for one. Know where your money is being spent, and if there is a mistake on your bill, don’t be afraid to discuss it.

Watch Out for Advice from Friends.

Everyone knows someone who went through a divorce. People want to share what they know. Attorneys hate that. We hate it because no two cases are alike, and people have biases. For instance, people seem to remember what they want to, forgetting the bad parts.

Control Your Emotions

I’ve written before about this common mistake before. When it comes to meetings, mediations, and court, time is money. Be prepared when it comes to mediation, and don’t get angry because you don’t like the offer made. Anger is expensive.

The Huffington Post article can be read here.