Legal fees are one of the biggest worries for anyone hiring a lawyer. Most firms use one of a handful of fee models - sometimes a mix. Knowing how each works helps you compare quotes and avoid surprises.

Hourly rates

You pay for the time the lawyer and their team spend on your matter, usually recorded in short increments. Rates vary with seniority: a partner costs more per hour than an associate or paralegal.

Good for: matters whose length is hard to predict, such as disputes. Ask: what are the rates of everyone who will work on the file, how time is recorded, and whether you can receive regular updates on costs incurred.

Fixed fees

You agree a set price for a defined piece of work, such as drafting a will, registering a company or handling a property purchase.

Good for: predictable, well-defined tasks. Ask: exactly what is included, and what would count as extra work outside the fixed fee.

Contingency and success fees

The lawyer's fee depends on the outcome - for example, a percentage of the amount recovered. Whether these arrangements are allowed, and in what form, depends heavily on the country and the type of case. In many places they are restricted or prohibited for certain matters.

Good for: some claims where you could not otherwise afford to bring a case, where permitted. Ask: what percentage applies, what happens if you lose, and who pays costs such as court fees and experts.

Retainers

Some firms ask for money on account before starting, which is then drawn down against fees. Others charge a regular retainer for ongoing availability, common for businesses.

Costs on top of fees

Expect possible disbursements: court or registry fees, translations, expert reports, travel and couriers. Ask for these to be estimated separately.

Questions to ask before you start

  • Can you give me a written estimate, and will you tell me if it is likely to be exceeded?
  • Who will work on my matter, and at what rates?
  • How and when will I be invoiced?
  • Are taxes such as VAT included?

Many directory profiles show an indicative price range ($ to $$$$). Treat it as a rough guide only - always ask the firm for a quote for your specific matter.

This guide is general information, not legal or financial advice.