(I Promise This Isn’t Too Boring).
No, this isn’t the most exciting thing you’ll ever read, but it is important to understand if you’re going to retain an attorney to work with you on your family law matter. I’ll try to make this as painless as possible.
TL;DR: Legal professionals bill you in tenths of an hour for specific work performed on your case. Payment for their services come from a retainer that you pay up front. It should always be obvious on your invoices what you are being billed for. If you have money left in your retainer once the legal relationship has ended, it is returned to you as soon as possible.
TOP FIVE THINGS TO KNOW ABOUT BILLING
- What is a retainer? Generally speaking, when you retain a lawyer to work with you on your case, you pay a retainer, which goes into a trust account mandated by the State Bar of California. The reason for the retainer is to ensure that your lawyer is committed to your case, and reasonably available when you need their services. Additionally, it is insurance for the lawyer that they will be paid for work done on your matter, which leads me to number 2.
- How is your retainer used? At Bloom, we apply the retainer payment held in your trust account to invoices for work performed. For example, if you paid an initial retainer of $3,500, and we performed work that adds up to $500, we will apply $500 to your invoice, leaving you with $3,000 remaining in your trust account.
- What should you look for on your invoices? First thing to note is when there is active work being performed on your case, you should be receiving invoices regularly so that you are kept abreast of your legal fees. You should also see on your invoices a summary of your trust account so that you are aware of how much money remains. The third thing to pay attention to is how you are being billed, addressed below.
- How do attorneys and paralegals bill for their work? Truth be told, this part isn’t very exciting, but it’s crucial to understanding your invoices. Legal professionals bill clients in 6 minute increments. Each 6 minute increment is equivalent to one-tenth of an hour. For example, if an attorney spends 18 minutes working on your case, they will bill you for 0.3 hours of their time. (6 minutes x 3 = 18 minutes).
If your attorney’s hourly rate is $450/hour, then 0.3 hours of their time equates to $135 ($450 x .3).
It is essential that your legal professionals carefully track their time spent working on your case. In our office, we utilize legal software that tracks our time and allows for accuracy on our time entries.
Additionally, it is required by the State Bar of California that legal professionals include what services you are being billed for on your invoices. At Bloom, we do our best to be specific about what a time entry entails. For example, instead of just listing “Email to client”, we will list “Email to client RE: spousal support payment.”
- What happens to the money in your trust account after your case is closed? Once you receive your final invoice, should there be any money remaining in your account, it will be refunded to you via check in a timely manner.
That wasn’t too bad, was it?
At Bloom, we strive for transparency and accuracy when it comes to billing our clients. It is our goal for our clients that they understand exactly where their money is going, and that they feel comfortable to ask questions related to billing.
- Kate Hanna, Paralegal at Bloom Family Law
