What is a "Retainer" and Why Do I Have to Pay It?

When you hire a divorce attorney or family lawyer to represent you, you may be asked to pay a “retainer” before any work is done. Depending on the nature and complexity of your case, this may be several thousand dollars. Understanding what this retainer is, and why you have to pay for it, can help you overcome the “sticker shock” and help you make the right choice in hiring the best attorney, rather than the cheapest one.

What is an Attorney Retainer Fee?

A “retainer” is a downpayment on the legal fees your attorney anticipates earning over the course of representing you. The amount you are required to pay, and whether you can make installment payments, should all be described in your retainer agreement – the contract you sign to hire a law firm.

This money doesn’t immediately go into your lawyer’s pocket, though. Instead, it is held in a separate trust account. As your case progresses, all work your attorney and her staff do, as well as any costs advanced for things like filing fees and copies, are billed against this retainer. The retainer only becomes your attorney’s money once it is earned. You should receive periodic invoices showing you what has been billed so far, how much money you have left in your trust account, and any amount still owed according to the terms of your retainer agreement.

Does Your Law Firm Charge a Retainer?

Attorneys can have different fee structures. The most common practices in divorce and family law are the use of retainers and hourly billing. In other areas of law – like personal injury – contingency fee arrangements are more common (where the attorney takes a percentage of the amount collected in the case). Still others charge “flat fees” for specific services (a set amount charged, no matter how much or how little time is spent on the case).

However, flat-fee and contingency fee structures are not generally used in family law cases because the time it takes to resolve a family law case can vary and not all our clients’ goals are financial. Most divorce attorneys require clients to pay a retainer up-front before any work can begin.

Before choosing the best attorney for your Maryland divorce, be sure you understand how that attorney will charge you for their work. This includes:

• Whether you will have to pay a retainer upfront
• How frequently you will be billed
• Your attorney’s hourly rate
• How much work will be done by support staff (paralegals, legal assistants, filing clerks, etc.)
• How much you will be charged for that support staff’s work
• The terms of payment (such as interest rates and grace periods)
• Whether the attorney accepts payment plans
• Methods of payment accepted (such as online or credit card payments)

Cost should not be the deciding factor on which attorney you hire. After all, more experienced and skilled attorneys generally have a higher hourly rate. However, that experience may allow them to perform certain tasks more quickly. Understanding what you will be required to pay, and how much you will be billed upfront, can help you choose the best lawyer for you.

Why Does My Family Law Attorney Use a Retainer Fee?

Your family law attorney may use a retainer to ensure that she can be paid for services rendered. In Maryland, once a lawyer files an appearance on behalf of a client, she must keep representing that client until the case is over or the Court gives her permission to withdraw from the case. By asking you to pay a retainer up front, your attorney knows that she can keep working on your behalf without the risk of non-payment.

The idea of paying a large retainer fee up front may seem off-putting. However, in many ways, retainers work to protect you and your attorney-client relationship. Paying a retainer before the work begins, and keeping any periodic payments up to date:

• Confirms that the attorney-client relationship has been formed (preventing the lawyer from being hired by your spouse or co-parent)
• Puts “gas in the tank” for your lawyer to get started working on your case right away
• Removes financial tension between you and your attorney
• Makes sure funds are available for filing fees, discovery costs, and other time-sensitive expenses that arise in your case

Will I Have to Pay More Money After My Retainer?

Most family law attorneys don’t ask for the full amount of anticipated attorney fees up front. Instead, the retainer amount is based on an assessment of what it will take to get the case under way. Your retainer agreement should lay out when and how additional payments will be made. You may be asked to refresh your retainer periodically, to keep a certain balance, or make additional payments before big events, like the trial. In other cases, once the retainer runs out you will be billed hourly on any outstanding balance.

Pay attention to the amount of retainer required compared to the hourly rates for services to be provided. Some lawyers set their retainers low as a marketing strategy and to get you to select their firm over the competition that may take a higher retainer. When evaluating which lawyer to hire and which retainer amount is more reasonable, the retainer should be broken down by the hour. A higher retainer often provides a more realistic expectation of the work to be performed. Don’t be afraid to ask your attorney about how she determines what an appropriate retainer should be and if there is anything you can do to minimize costs.

Can Someone Else Pay My Retainer Fee?

Many clients get help paying for their divorce from family or friends. Third parties are allowed to pay your retainer fee on your behalf. However, if there is a balance at the end of the case, that money will generally be refunded to you directly. If someone else paid for your attorney fees, you will need to forward that refund on to them unless you have made other arrangements with your attorney ahead of time.

In some cases, including fault-based divorces and cases involving prenuptial agreements, you may be able to ask the judge to order your spouse to pay some or all of your attorney fees. However, this will not replace the need to pay a retainer. Instead, if the court awards you attorney fees and your former spouse pays them, they will be used to offset any outstanding balance and the difference will be refunded to you at the end of the case.

Hiring an experienced divorce attorney can be intimidating. A retainer fee can seem like a lot of money. But hiring the right lawyer is key to reaching a resolution that will make sure you are provided for in the years following your divorce. When making a choice like that, the cheapest option generally isn’t the best. At the Law Office of Shelly M. Ingram, our divorce attorneys know how to get you a fair resolution in your divorce that will protect you and your assets, without spending all your money on attorney fees. We have strategies to help you resolve the various issues that could arise in your divorce, saving you time, frustration, and possibly money. Call (301) 658-7354 or contact us today to schedule a consultation with an attorney.