Earlier this week, The Hart Law Firm took a big step forward. We signed up our first client on a flat fee basis and it feels great. Until now, I had done what most other divorce lawyers do – charge a retainer combined with a refundable trust deposit that I billed against at my normal hourly rate. Neither my clients, nor I, have any clue as to what the final fee would be for their case. The way I see it now, that system sucked.

Clients never called to give me updates for fear that they would get billed for the call. I was afraid of taking too much time on a single client in a short period of time for fear that the client would freak out at the huge legal bill and think I was trying to gouge them. My perceived incentive was to bill as much as possible (not true – because those who work with me know that I try to be extremely reasonable with their bills), while the client wants their case done ASAP at a reasonable cost.

So I decided to do something about it.

Now, for each new contested divorce client, I will offer a flat fee schedule for their entire case. The client will know, from day one, how much their legal costs have the potential to be. I will charge a flat fee for various steps in the process, such as initial pre-litigation negotiating and drafting of separation agreements, a separate fee to initiate litigation, another to attend hearings or conduct mediation, etc. If the client decides to settle the case sooner, the rest of the fees will never come due.

Also, if you are an existing client and would like to convert over, let me know – I’d be happy to prepare a quote for the remainder of your case.

Why does this system work so well?

1. Your interests and my interests are aligned. We both want to get your case done quick.
2. You have complete control over your legal costs.
3. Unlimited phone and email time without getting charged for it, and in fact, I have eliminated the disincentive for you to contact me to talk about your case.
4. I have incentive to work more efficiently and get more done for the client.

Now, if you are reading this and thinking that you really want to do an hourly fee, that is ok. If a prospective client still wants to pay an hourly fee, I will honor that request. But I think that you will probably see the benefits to a fixed fee approach and switch over pretty soon.