How Much Do Lawyers Cost? 2023 Guide – Forbes Advisor

You don’t just need to ask, how much do lawyers cost? You also need to know how different fee arrangements are set up. There are three common payment structures for legal professionals including a contingency fee, hourly fee and flat fee.

Contingency Fee

Contingency fees are common in injury claims but are forbidden for certain types of cases, such as criminal defense.

As the name suggests, a contingency or contingent fee means that payment is contingent upon–or conditioned on–the successful outcome of the case. If the desired goal is not met, the attorney is not paid for their professional services.

When a lawyer handling a personal injury claim charges contingency fees, the attorney collects payment only if:

• The case is settled out of court with the victim obtaining compensation or
• The victim wins a lawsuit and is awarded damages that the defendant pays

The contingency fee lawyers charge for injury claims typically ranges from 25% and 40%, depending on whether a case is resolved quickly in an early settlement or goes forward to trial or even appeal.

When a lawyer charges on a contingent fee basis, this usually applies only to legal services. In some cases, you may still have to pay actual expenses associated with your case even if your lawyer doesn’t win and recover compensation for you. For example, you might have to pay court filing fees or the costs of expert witnesses–although some firms do cover these costs and don’t expect reimbursement if your case isn’t a success.

Hourly Fee

Many attorneys charge on an hourly fee basis. This means you pay them a set rate for each hour (or portion of an hour) that they work. This is a common billing practice in virtually all areas of law ranging from divorce and criminal law to estate planning to corporate law and beyond.

The hourly fee attorneys charge could range from as low as $50 or $100 per hour to as high as several thousand dollars per hour for specialized legal work performed by a top professional.

According to the Clio 2022 Legal Trends Report, the average attorney hourly rate was $313.00 in 2022. You may pay more or less depending on the kind of service you need, where you live and which attorney you hire.

Flat Fee

Finally, some attorneys charge a flat fee. This means that they give you a set price for a specific service or batch of services.

Flat fee arrangements are more common when an attorney is doing a standard, simple task with a clear scope of work. For example, a lawyer might charge you a flat fee to create a simple will or to file the paperwork for an uncontested divorce.

The amount you are charged under a flat fee arrangement varies widely depending on the nature of the legal services. The good thing about this arrangement is that you know up front exactly how much your legal bills will be unless something unforeseen happens.