What is the Difference between Billable Hours (Hourly Billing) versus Flat Fee?

Divorce can become an expensive experience where fees and bills are unforeseen and unpredictable.  In order to maximize profit, most family law attorneys favor the traditional method of billable hours (hourly billing) compared to a flat fee method.  The Rivera Law Firm has converted to the flat fee method for many of their offered services. 

The billable hours (hourly billing) method consists of a family law attorney collecting an initial retainer or deposit for roughly $1,000.00-$1,500.00.  The attorney will then bill the Client against that retainer/deposit for every hour or fraction of an hour.  A typical hour is charged roughly $175.00-$225.00.  In the agreement with the attorney, the Client will be charged for the attorney’s time spent working on their case, letters, phone calls, e-mails, etc.  Therefore, roughly four (4) hours are spent working on the Client’s case before the retainer/deposit has depleted.  The attorney will demand from the Client an additional retainer/deposit in order to continue work or the attorney will withdraw from the Client’s case.  As you can see using the billable hours (hourly billing) method, Clients are uncertain of how much their case will cost to complete. 

On the other hand, the flat fee method consists of a family law attorney quoting the Client a fixed fee in order to complete the Client’s case.  The fee will remain a fixed fee unless unforeseen services are needed that are beyond the scope of the Client’s case.  If an unforeseen service is required, the attorney will quote the Client a fixed fee for this service.  The flat fee is determined based on the agreement of the spouses on property division, debt(s), and/or parenting plan for their child(ren).  As you can see using the flat fee method, Clients are explained upfront what the Client is being charged for, which gives the Client a financial peace of mind about their case.

In sum, Clients have different views on whether to utilize the billable hours (hourly billing) method or the flat fee method.  The Rivera Law Firm has determined that the flat fee method leads to attorneys working more efficiently rather than prolonging or delaying the Client’s case.