How Much Does a Lawyer Cost?

Are you dealing with a business matter, such as whether to hire a contractor or a full-time employee? Or do you need help with a prenup? Legal advice is invaluable when you want to do the right thing and need help with how to proceed. The upfront cost of hiring an attorney averages around $260 per hour—a figure that can scare many away. Learn the different fee structures law firms use and identify the key factors driving a lawyer's cost. 

Understanding potential costs will help you make an informed decision about legal matters. Here are some of the most common legal specialties and how much it would cost to have legal help on your side of the table. 

Different ways lawyers charge clients 

Law firms have a few tricks up their sleeves when it comes to billing. They use different methods depending on your needs and the complexity of your case. The most common ones are flat fees, hourly rates, retainer, and contingency. 

Flat fees

A flat fee is when a lawyer charges a predetermined amount upfront before they do any work on your case. Attorneys typically employ this billing method for specific legal services where it’s easy to estimate the time it will take to complete the task, such as reviewing legal documents, drafting a will, or writing a cease and desist letter. 

Other areas where flat fees are common are trademark and immigration issues. This is because most of the work, like preparing documents to file for a trademark, is done upfront. Once the submission is done, the attorney just needs to monitor the process instead of continuously being involved, as in divorce trials or personal injury claims. 

Hourly fees

The most common way for an attorney to charge for their expertise is an hourly fee. The attorney commands a fixed hourly fee and will bill you for the hours spent on your case. The hourly rate can vary greatly depending on the field of legal practice, location, case complexity, and attorney's experience level. For instance, you can expect a lawyer from a coastal or top metropolitan city to charge a higher hourly rate than someone in a small Midwestern city. 

A law firm uses the hourly fee method when the lawyer has to be continuously involved, and there’s no clear-cut answer to how long it will take to resolve the issue. Hourly rates are standard in divorce, real estate, and employment matters.  

Retainer

A retainer is like an advance or down payment to a lawyer. It is something they will subtract from your final bill. The retainer amount is based on the attorney’s hourly rate, and many lawyers ask for a retainer to increase financial stability and provide a better customer experience. 

There are also multiple types of retainer fees, and depending on the law firm, you could get various payment options, like paying via a lump sum or installment plan.

A lawyer retainer agreement will detail the payment terms (including what constitutes billable time) and working relationship between the law firm and client. 

Contingency

In a contingency-based payment structure, the lawyer earns a percentage, typically between 25% and 50%, of the recovery amount. So, the lawyer only gets paid if they successfully represent you and get a settlement. This billing method is common practice in personal injury claims, such as car accident cases, product liability claims, slip-and-falls, and medical malpractice. 

Suppose you are suing a bike manufacturer for a brake issue that resulted in injuries; you will only pay your lawyer if you get a settlement from the manufacturer. 

There are various fields of legal practice, and each has its own way of billing. 

Employment lawyer

Take action if your employer denies you rightful overtime pay or if a client refuses to pay you as a freelancer. After giving a fair warning or following the employee handbook, there’s still no light at the end of the tunnel, it's clear you need legal help. Hire an employment attorney to get the justice you deserve.

What does an employment lawyer do? 

Employment lawyers are masters of workplace cases and know all the applicable federal and state protections and regulations. They handle matters such as pay classification, unlawful termination, harassment, workplace injury, wage disputes, and workplace discrimination. 

An employment attorney can: 

• Draft and review employment contracts
• Advise on federal and state employment laws 
• Provide updates on the latest developments in employment law
• Assist with worker classification (W-2 vs. 1099 or exempt vs. non-exempt) 
• Ensure compliance with federal, state, and local regulations
• Give guidance on wage and salary thresholds
• Develop and implement employee handbooks 

How much does an employment lawyer cost?

Employment lawyers tend to charge hourly fees. As the attorney works on your case, the law firm will keep a tab on those hours and send a monthly bill. Contingency billing, where the attorney takes 30%-50% of the settlement, only comes into the picture if the client seeks monetary damages for discrimination or violation of rights. However, this alternative fee agreement is becoming increasingly rare as most cases are high-risk, and there's minimal chance of walking away victorious.

Flat fees are uncommon in employment law, but there may be times when the lawyer charges $100-$200 for a standard employment contract review.

Estate planning lawyer

Matters of the estate can be overwhelming and uncomfortable—nobody wants to discuss what will happen after their death. But these seemingly dreary matters are important and not as straightforward as they appear. Creating a comprehensive estate plan will reduce legal headaches, conflict, and stress between loved ones after your death. 

What does an estate planning lawyer do? 

An estate planning attorney specializes in end-of-life planning, such as who will receive assets after a person's death and the tax implications for beneficiaries. 

An estate planning attorney assists their clients with the following tasks: 

• Drafting a valid living and last will
• Identifying beneficiaries for assets
• Creating a trust
• Planning for tax liabilities 
• Drafting a power of attorney
• Appointing estate executors
• Creating healthcare directives
• Strategizing on ways to avoid the probate process 

How much does an estate planning lawyer cost? 

Estate attorneys typically charge a flat fee between $100 and $200 for quick matters like drafting a will or power of attorney. However, a lawyer could charge by the hour for designing a comprehensive estate plan with significant assets and multiple trusts. Hourly fees for estate lawyers range from $250 to $350. 

Divorce lawyer

Feel like you’ve drifted apart from your spouse and unsure of what to do next—file for divorce or temporarily separate? This emotionally challenging phase can be overwhelming, and a divorce lawyer can serve as your legal sounding board and trusted confidant as you weigh your choices. 

What does a divorce lawyer do? 

Divorce lawyers represent couples through one of the most demanding stages of their personal life—ending their marriage. A divorce lawyer is familiar with the divorce process and can set the right expectations around how much time your divorce can take and whether exploring other dispute resolution methods would be beneficial. They can understand your circumstances and provide legal strategies to give you the most favorable outcome. 

The main functionalities of a divorce lawyer are to: 

• Advise a married couple on marital matters like alimony, property division, and child support
• Explain legal rights and obligations 
• Draft divorce paperwork
• Negotiate with the other party 
• Advocate for each party’s interests and needs 
• Suggest mediation, trial separation, or alternative resolution solutions 
• Ensure enforcement of divorce terms 
• Support clients emotionally 
• Represent clients in court 

How much does a divorce lawyer cost? 

The average cost of a divorce lawyer in the U.S. is $270 per hour; newly practicing divorce lawyers start at approximately $100 per hour. This hourly rate can also go as high as $500 if you opt for a lawyer to handle the entire divorce process—from filing the papers to representing you in court. Factors that sway the billing rate are how agreeable both spouses are, whether children are involved and whether it’s a contested vs. uncontested divorce. The more work and handholding the divorce lawyer has to do, the more they’ll charge. 

Contract lawyer

Contracts are a part of everything you do—from your job to the online shopping site where you bought that dress. Yes, the fine print of the returns and refunds policy is a contract. Recent data state that almost a third of the country’s civil cases stem from contract breaches or instances in which you feel the other party has “cheated” you or is not holding up their side of the bargain. If you are facing a similar situation, a contract attorney is the specialist to call.

What does a contract lawyer do? 

A contract lawyer is a specialist in contract law. Their primary role is to help their clients negotiate, draft, review, and enforce legally binding agreements that limit their liability and decrease the chances of misrepresentation. They also have the skillset to mediate between parties and suggest alternatives. They also know contract legalese and can explain to you what you’re signing and prevent you from legal loopholes. 

It’s advisable to get a contract lawyer for any of the following: 

• Negotiating business contracts 
• Contemplating a new job offer 
• Entering a new contract with a vendor or client 
• Revisiting old contract 
• Purchasing any significant asset (car, house, capital equipment)
• Taking out a loan 
• Getting investment from bank or angel investors 
• Dealing with complex issues like intellectual property, licensing, or trademark infringement
• You’re accused of breach of contract 

How much does a contract lawyer cost? 

The average hourly rate for a contract lawyer to draft and review a contract is $150-$350. Some attorneys also prefer charging a flat fee, ranging between $200-$800, for drafting a prenuptial agreement or independent contractor agreement. 

If your matter is more complex or you need to fight a breach of contract case, you can expect to spend between $250-$1,000 per hour as these require more work and involvement from the lawyer.

Debt collection attorney

Are you a freelancer struggling with a non-paying client or a business owner looking to protect yourself from overzealous debt? A debt collection attorney is the legal expert you need. A debt collection attorney can not only help in the above situations, but they can also assist in recovering a significant loan.  

What does a debt collection attorney do?

A debt collection attorney can help you take legal action against a non-paying client. They’re well-versed in the Fair Debt Collection Practices Act (FDCPA). So, they can also protect you from harassing creditors or investors who could be seeking their money. 

You should work with an experienced debt recovery attorney if you: 

• Need money from a non-paying client
• Foresee your case to go to trial
• Wish to send a demand letter 
• Are unable to pay the loan within the stipulated time
• Are being mistreated by creditors
• Are up against a large corporation with legal representation

Now, if you owe a significant amount of money to someone, a debt collection attorney can’t make your debt disappear into thin air. But they can protect your legal rights and create middle-ground solutions to buy you some time and respite as a borrower. 

How much does a debt collection attorney charge? 

Debt collector attorneys are known to charge a flat rate and by the hour. If you have a simple case, such as you want the credit card company to back off, the attorney might charge a flat fee of $500 to resolve your case. The more complex the matter, the more creditors the lawyer has to negotiate with, the more it will cost. 

The average hourly rate for debt collector attorneys in the U.S. ranges between $125-$350. 

Real estate attorney

After years of saving, you’re finally ready to buy your dream home. You might be wondering, “Do I need legal help?” We’d say that real estate is a legal matter, and having an extra pair of eyes would be beneficial. A real estate attorney will make sure your real estate transaction goes off without a hitch. 

What does a real estate attorney do? 

A real estate attorney handles all transactions related to property. Their scope of work includes deeds, zoning, titles, and property taxes. Real estate law changes from state to state, so getting an attorney familiar with your state’s regulations and procedures is ideal. Some states require the requirement of a real-estate attorney. For example, if you’re buying a home in New York or West Virginia, you must have a law firm handle certain aspects of the purchase transaction.

A real estate attorney can assist in scenarios like:

• Reviewing home purchase documents
• Explaining applicable state law
• Negotiating real estate deal
• Drafting a contract with home seller
• Performing a title search
• Creating title insurance policy
• Providing a title opinion 
• Overseeing transfer of funds and closure process 
• Managing a short sale

How much does a real estate lawyer cost? 

On average, you can expect to pay an hourly rate between $150-$500 for a real estate attorney’s services. For a simple home closing, the attorney’s fee would be $750-$1,250. For complex cases, like when there is no title, the range would be around $1,500-$3,000. 

Some real estate attorneys offer a flat fee for their expertise in routine legal matters, like reviewing home ownership contracts. 

What affects how much lawyers cost?

Most attorneys do have a reputation for being pricey. But, people don’t understand that many factors impact their final billing rate. Let’s look at the three most important criteria that affect the legal fees you’ll pay. 

Type of work and complexity

The more work and time a lawyer spends on your case, the higher the cost will be. For instance, if you just need a lawyer to draft your prenup, the lawyer may charge a flat fee for this standard service. On the flip side, if you’re embroiled in an estate battle that requires verification of will and minor children as beneficiaries, you can expect your billable hours to be much higher as the attorney has to put in continuous work and effort. Many attorneys are also known to charge a higher percentage of fees for high-risk cases with lots of legal issues. 

Legal specialty

High-demand lawyers with niche knowledge tend to command a higher price. High-contention and high-value cases like intellectual property infringement, criminal law, and corporate battles are complex with significant financial implications. Other specialties, like medical malpractice or tax law, require additional study and certification post-law school, driving up the lawyer’s fee. 

State and jurisdiction  

How much an attorney costs also varies depending on where they are based. Lawyers inland, in rural areas with fewer clients tend to be more moderately priced than an attorney from the top legal firm in New York City. The higher the cost of living, the more likely the attorney’s hourly rate will be pricier because there are automatically more overhead costs (higher rent and utilities). 

Attorney costs in each state

Want to know how much it would cost to hire a lawyer in your state? According to Statista, a leading statistics database, here are the hourly billing rates of attorneys nationwide, listed from cheapest to most expensive. 

• West Virginia $162
• Maine $193
• Montana $199
• South Dakota $199
• Iowa $202
• Kentucky $204
• Alabama $208
• Mississippi $217
• Nebraska $218
• Ohio $224
• Kansas $227
• Wisconsin $231
• Idaho $233
• Tennessee $233
• Oklahoma $235
• Rhode Island $240
• Wyoming $241
• Indiana $242
• Arkansas $242
• New Mexico $242
• Louisiana $245
• New Hampshire $248
• Missouri $249
• South Carolina $249
• Utah $250
• North Dakota $253
• North Carolina $254
• Oregon $255
• Colorado $261
• Arizona $266
• Michigan $266
• Vermont $266
• Minnesota $271
• Massachusetts $285
• Georgia $286
• Pennsylvania $288
• Washington $288
• Virginia $295
• Florida $297
• Texas $300
• Illinois $305
• New Jersey $306
• Maryland $310
• Nevada $311
• Connecticut $342
• California $344
• Delaware $344
• New York $358
• District of Columbia $392

How to find the right lawyer

Protect your case and reduce your risk by choosing the right lawyer with the specific expertise you need. These methods can help you find a lawyer who is a perfect fit for your case and makes you feel comfortable. When researching law firms, prioritize these qualities.

Ask other lawyers for recommendations

Just like you ask your primary care physician for their recommendation on a specialty doctor, it’s best to ask any lawyer you have worked with for references. Lawyers know who else is best in different fields of practice, making this a reliable source of recommendations. They also know how to assess the competence of another professional more effectively than a complete outsider. 

Research local law firms and bar associations

Your state or local bar association is another excellent starting point. Find your state bar association website via a Google search and see if they have a members’ directory or a contact number you can call for referrals. However, not all of the lawyers listed might be verified or actively practicing. Limited information might also be available, so you’d have to do further research to get more details about a specific lawyer. 

Use an online lawyer directory

One of the best and most efficient ways to find a lawyer is to use an online attorney directory like LegalZoom. You don’t have to spend time meeting lawyers or getting second opinions on their skill set as you would have to do with local law firms. You can find specialized lawyers, read their reviews, and get a quick free consultation to see if their work style suits you, all from the comfort of your couch.

FAQs

Do lawyers negotiate?

Most lawyers don’t negotiate for straightforward services where they charge a flat fee. They might be open to negotiating their hourly rate or reducing overhead charges, like administrative costs, if you’re upfront about what you can and can’t afford. You can also speak to your lawyer about exploring alternative fee arrangements like a sliding scale or a payment plan. Keep in mind that squeezing out the best deal or just going for the lowest-priced lawyer might compromise the quality of work. 

Who pays if my lawyer wins in court? 

Typically, each party must pay their lawyer’s fees, regardless of whether they win or lose. In a personal injury case, where your lawyer is working on contingency, and you win the settlement, your lawyer will take a percentage of the final settlement. However, there could be cases where a stipulated statute or contract specifies how lawyer’s fees will be paid. Your lawyer can explain if there’s a chance to recover their fees from the opposing party. 

Do lawyers charge less if we don’t go to court? 

A lawyer’s hourly fee will probably remain the same, but their billable hours will decrease if your case doesn’t head to trial. Trials are complex and time-consuming and require more hours and prep work from the lawyer, thus increasing your cost. 

What goes into a lawyer’s bill? 

In addition to the lawyer’s billable hours, you can expect your final bill to include the cost of paralegals, investigators, and additional support staff. Law firms are also known to bill their clients for administrative expenses like photocopying and delivery services.

How much do lawyers take from a settlement?

There’s no fixed number to answer this because this depends on the complexity of the case, potential risks involved, and how much work the lawyer will have to work on your case. But the bright side is that lawyers are open to negotiating their cut from a settlement amount.