How Much Will My Divorce Cost? Part Two of Four - The Hourly Rate

Thanks for wading through Part One of this series.  Gird your loins for Part Two.

There are four main ways an attorney in the Trenches can bill for services:  hourly rate, flat fee, capped fee, fixed fee/value billing.  There are also combinations of the two, such as an hourly rate with some items charged as a flat fee, but we're not going to be talking about those.

Most clients who enter the Trenches hire an attorney and pay an hourly rate.  What that means is that the attorney charges for the time it takes them and their staff to complete a task.  It has the benefit to the client that they know how much the attorney charges per hour.  It has the benefit to the attorney that they know that everything that they do for the client it quantified.  Beyond that, what are the pros and cons of using an hourly rate here in the Trenches?

Pros

1. The client knows that every time they call the attorney, they are going to be charged. The attorney knows that the client knows that every time they call, they'll be charged, so they won't call too much and monopolize the attorney's time.
2. The client knows exactly what they are going to be charged for the time the attorney spends on their case.  The attorney knows how much to charge for every task. because it all gets charged the same.
3. The client just has to be concerned with paying the monthly bill for their attorney's fees.  The attorney can spread out receipts because they're based on time, not the case.
4. The client doesn't have to come up with a large sum of money up front.  The attorney can get a client signed up for not a lot of money, so more people will retain the attorney.
5. A more expensive attorney probably takes less time to do a task, so they're no more expensive than a cheaper attorney who takes longer. A more experienced attorney can charge a higher rate.
6. The client can determine what is and is not important to them based on the fee.  The client has no knowledge of what is appropriate to do or not to do and so a decision on process based on the hourly rate for the services may not be informed. 

Cons

1. The client knows that every time they call the attorney, they are going to be charged, so they don't call the attorney.  The attorney doesn't know vital information because the client didn't want to be charged to provide it.
2. The client has no ability to budget for legal fees because they vary based on the amount of work done.  Because the client has no ability to budget, the attorney may not get paid in full each month.
3. The client has no control over the amount of fees charged in a month. The attorney controls the amount of fees charged in a month by the amount of time they spend on a case.
4. The client doesn't want the attorney to pursue an issue because they don't have the money.  An attorney may limit the issues they pursue if they know the client has limited means (it shouldn't happen, but sometimes it does).
5. Every task is worth the same, no matter if it involves high skill and creativity, or simply churning out a form.  Every task is worth the same, no matter if it involves high skill and creativity or simply churning out a form.
6. Because a client is charged for time spent by the attorney, time spent waiting for a hearing, waiting for a judge, waiting for the other side in mediation, all increase the client's cost because they're being charged for the waiting. The attorney feels pressure to do work for other clients while waiting so they don't charge the client they're waiting for, and miss an opportunity to connect and learn more about the case. 
7. The attorney has no incentive to be efficient; being inefficient is more profitable.
8. The client is surprised by the amount of the fee.  The attorney spends years collecting the fee.
9. The client doesn't appreciate the value of the legal advice and expertise. The attorney doesn't appreciate the value of their legal advice and expertise.
10. The client may run out of money and have to enter into a settlement they don't want because they can't afford to keep negotiating.  The attorney may not have the money to explore all avenues of settlement.