Last updated and Version: 27 August 2021, v2.
[888924] Correspondence - To Client - Estimating legal fees; lowering legal fees; the path forward.
Purpose
To advise that legal fees should not be viewed as a fixed number and instead viewed as ranges. Reason, clients often do not realise that legal fees depend upon the work required and the work required depends upon the degree of disagreement between the parties.
To advise how we estimate our legal fees. Reason, client’s wonder where the numbers put forward to them come from.
To advise of the worst case scenario. Reason, even though the amount of legal fees are shocking, it is unethical to mislead clients. It is best to inform the client so that they can make sound decisions.
Correspondence
In relation to anticipated costs to finalise your family law matter, in essence, we operate on ranges:
If the parties can come to an quick agreement and formalise same by Consent Orders, then in the range of $4,800 to $8,000 plus GST.
If the parties come to agreement and formalise same by Consent Orders but the process is drawn-out, then in the range of $9,600 to $14,400 plus GST.
If the parties cannot agree and proceed to Court but settle before the final hearing, then in the range of $20,800 to $35,200 plus GST.
If the parties cannot agree and proceed to Court all the way to final hearing, then in the vicinity of $50,000 plus GST and beyond.
These estimates provide for the worst case scenario so that you are never shocked and acts as a reference for making financially sound decisions. We would never encourage you to go to Court and spend enormous sums on legal fees unless it were the last and final resort and was commercial to do so. The fundamental and best way to lower legal fees at it’s core is for the parties to come to an agreement with as little friction as possible. As a rule of thumb, the less the parties agree, the higher the legal fees (including Court filing fees and other disbursements, if required).
We note that our fees are calculated by estimating the time required to achieve the goal. For example, we estimate the time required to come to a quick agreement and formalise same by Consent Orders involves between 15 to 25 hours of work. As our hourly rate is $320, 15 hours of work amounts to $4,800 and 25 hours of work amounts to $8,000. We estimate the time required by considering past matters similar to yours and the unique facts of your matter.
In terms of paving the path forward, we recommend that we first ensure the financial disclosure is in order. Once this phrase is finished, the next phase is to put in an offer for settlement. If accepted, then the final phase is to formalise the agreement by way of Consent Orders.
As this is a lot to consider, please do not hesitate to call me and I can walk you through it.