divorce-and-money

How to Reduce Your Attorney Fees

Are you spending too much in attorney fees?  Everyone embroiled in a family law dispute wants to know how they can pursue a legal action without spending a lot of money.  While finding a family law attorney with a lower hourly rate or who requires a lower retainer may seem like the least expensive way to go, what most people fail to realize is what they can do to reduce their attorney fees.  Having a firm grip on your legal bill begins with your very first step – selecting the family law attorney who will represent you.  To start out on the right foot, consider the following:

Free Consultation vs. Paid Consultation:  Everyone wants something for free and a free consultation, or your very first meeting with a prospective attorney, is no exception.  So, why would you pay for a consultation with an attorney when you can find many others who would talk to you for free?  Consider the source.  Who would be providing the free consultation?  Is it the attorney you would really like to represent you, the one who has the reputation as being the best in his or her area of specialty, or is it with a new associate who doesn’t have as much experience?  Most attorneys who have earned a reputation as being the go-to person for a certain type of legal action are too busy with current clients to give their time away for free.  They charge a premium because if they talked to prospective clients for free, they’d spend all of their time meeting with potential clients rather than practicing law – it’s the simple law of supply and demand. 

How Much Expertise Does Your Case Require?  Consider your needs and shop accordingly.  Divorcing couples with no children or no assets don’t need the same level of legal expertise as couples who are facing nasty custody disputes or who may own a business or several businesses.  If you don’t have a lot to fight over or are able to amicably agree on how to divide the marital assets or time with the children, look in to mediation or consider an attorney who can transact a simple, non-contested divorce.  If yours is a relatively simple matter, you may want to specifically ask that an associate handle your case.  Associates generally charge much less than partners but you will still benefit from the knowledge and advice of the senior attorney on an as-needed basis.

Understand How You Will Be Billed.  In entering into an attorney-client relationship, your attorney will present you with an agreement outlining the scope of the services to be provided as well as how you will be charged for services.  This is commonly known as the Engagement Letter or Fee Agreement.  While it is common for only the senior attorney’s billing rate to be presented in the agreement, ask who else will be working on your case and what billing rates they charge.  In addition, don’t assume that your initial advance fee (formerly called a retainer) will cover the cost of your entire action.  There are many factors that affect overall cost but after learning the details of your case at the initial meeting, the attorney should be able to give you a ballpark estimate of how much you can reasonably expect to spend in attorney fees and give a range for overall expected costs.

Be Honest With Your Attorney.  The attorney-client relationship is privileged, meaning that what you say to your attorney is confidential.  If you have made poor decisions in the past, don’t try to hide it from your attorney.  Secrets have a way of coming out in a legal dispute and your attorney needs to know what skeletons are in your closet.  If you hide something, it will most certainly come to light later and will end up costing you more in attorney fees.  Your lawyer needs to know what he or she is dealing with up front.

Get Organized.  Keep it as simple as possible for your attorney.  For example, if child support is an issue, organizing your receipts and payments in chronological order rather than handing over a shoebox full of receipts for the last 5 years will save you money since the paralegal won’t need to spend time organizing your file.  One caveat:  before spending a lot of your time, ask if there’s a specific format or manner in which you should organize it.

Save Money on Correspondence.  E-mail is a great money-saver.  Rather than spending money on postage, a cost which is usually passed through to the client, let your attorney know that e-mail is your preferred method of communication.  In addition to correspondence, ask that they transmit forms and other documents to you via e-mail.  Not only will you save money on postage, scanning and e-mailing the documents will also save money on copying cost – another cost that is usually passed through to the client.

Do Some of the Leg Work.  Are you seeking a modification of custody or child support?  Then make sure you provide your attorney with a copy of your previous Judgment on your very first visit.  If you don’t, you will end up paying the time required for a paralegal to retrieve it from the court.  The same is true for addresses, dates of birth, and social security numbers – ensure that the information you have is accurate and complete.  If you don’t want to spend the time to locate the information or are unable to,   you will pay for the time required for an employee of the firm to locate that person or information for you.

Pay Your Bill On Time.  Most fee agreements provide for interest or late payments if you don’t pay your balance in full each month.  Don’t get caught in a debt spiral, be sure to communicate with your attorney to prevent interest charges from accruing on your account.  If you’re not able to pay your balance in full, contact your attorney or the administrator of the firm to find out if they will waive interest if you set up a payment plan where a set amount is deducted from your bank account or charged to a debit or credit card each month.  Most firms will be happy to work with you if you make a good faith effort to pay your bill.

Negotiate Your Final Payment.  This is one thing I rarely see a client do.  If your matter is finished and you’re left with a staggering legal bill, ask if your attorney will accept a smaller lump sum as payment in full.   A discount on the final bill is a way for you to significantly reduce the total amount you pay and benefits the attorney since they won’t have to pay the administrative costs associated with collecting the bill over time.

 

Do you have other questions about divorce and money that you’d like answered?  I’d love to hear from you!  Send me an e-mail and I’ll answer your question in a future blog post.  Submissions should be in the form of a general question and should not contain specific information regarding people or events.  The publication of a blog post addressing your question does not create an attorney-client relationship and should not be construed as legal or tax advice.  Please see our legal disclaimer for additional information.

By Tina Sabbagh, CPA, MBA on behalf of The Law Offices of Kathleen E. Shaul, PC

Child Support for Children in College

Missouri child support laws allow benefits to continue past the age of 18, up to the age of 21, if the child is enrolled in an institution of higher education by the October following graduation from high school.  Generally, any community college, college, or university will qualify as an eligible institution as long as the child attends classes regularly and meets the requirements for continuation of support.

Requirements for Continuation of Support

Completion of at least 12 credit hours per semester

To be eligible to receive support payments, the child must enroll for and complete at least 12 hours of credit each semester, not including the summer session.  If half or more of the classes are failed in any one semester, child support may be terminated and ineligible for reinstatement.

Sufficient grades

The child must achieve grades sufficient to reenroll at the college.

Course information must be provided to parents

At the beginning of each semester, the child must submit to each parent a transcript or similar official document which lists the courses enrolled in and completed for each term, the grade and credit received for each course, and an official document from the school listing the courses the child is enrolled in for the upcoming term including the number of credits for each course.  If the noncustodial parent requests notification of the child’s grades, the child must produce the required documentation within 30 days of receipt of grades from the school.

Completion of at least 9 credit hours per semester if employed full-time

A child who is employed at least 15 hours per week during the semester may take as few as 9 credit hours per semester and remain eligible for child support as long as the other requirements are met.

Children with Disabilities

A child who has been diagnosed with a developmental disability, or whose physical disability or diagnosed health problems limits the child’s ability to carry at least 12 credit hours per semester, remains eligible for support as long as the remaining requirements are met.

Payment of Child Support Directly to Child

The child or the parent obligated to pay support may petition the court to amend the order to direct the obligated parent to make the payments directly to the child.  Courts look at the specific circumstances of each case before they make a determination of whether or not payments can be made directly to the child.  Some factors that may affect the Court’s decision include whether the child is capable to handle his or her own money, if he or she has handled money in the past, and whether the child lives with the custodial parent for all or a portion of the time he or she is enrolled in school.

The Law Offices of Kathleen E. Shaul represents mothers and fathers, as well as children, in actions for child support of adult children while attending school.  If you have attempted and failed to settle child support issues on your own, schedule a confidential consultation to discuss your case with an experienced family law attorney.

Hiding Assets in a Divorce

Do you suspect that your spouse is hiding assets in a divorce but don’t have access to your financial information?  Your tax returns provide a good starting point for tracing assets but it’s not uncommon for the returns to disappear once the discussion of divorce comes up.  If you don’t have access to prior year’s tax returns, contact the IRS to get copies of the transcripts.

What You Need to Know About Getting Federal Tax Return Information

  1. You can get copies of your federal tax return via the web, phone, or by mail.
  2. Transcripts are FREE and available for the current and past three tax years.
  3. A tax return transcript shows most line items from your tax return as it was originally filed, including any accompanying forms and schedules.  It does not reflect any changes made after the return was filed.
  4. A tax account transcript shows any later adjustments either you or the IRS made after you filed your return.  This transcript shows basic data including marital status, type of return filed, adjusted gross income, and taxable income.
  5. To request either type of transcript online, go to IRS.gov and use the online tool called Order A Transcript.  To order by phone, call 800-908-9946 and follow prompts in the recorded message.
  6. To request a 1040, 1040A or 1040EZ transcript through the mail, complete IRS Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript.  Businesses, partnerships and individuals who need transcript information from other forms or need a tax account transcript must use Form 4506-T, Request for Transcript of Tax Return;
  7. If you order online or by phone, you should receive your tax return transcript within 5 to 10 days from the time the IRS receives your request.  Allow 30 calendar days for delivery of a tax account transcript if you order by mail;
  8. If you need an actual copy of a previously filed and processed tax return, it will cost $57 for each tax year you order.  Complete Form 4506, Request for Copy of Tax Return, and mail it to the IRS address listed on the form for your area.  Copies are generally available for the current year and past 6 years.  Allow 60 days for delivery;
  9. The fee for copies of tax returns may be waived if you are in an area that is declared a federal disaster by the President.

For the purposes of gathering information in preparation for a divorce settlement or trial, it’s a good idea to obtain the free tax return and tax account transcripts if you don’t have a copy of the original returns.  Your attorney will generally want to see returns for the last 3 years and you can order the actual copies later, if needed. 

If you believe your spouse is hiding assets in a divorce, contact The Law Offices of Kathleen E. Shaul to discuss your case and schedule a confidential consultation with an experienced divorce attorney.

 

How to Get a Divorce in Missouri

Your spouse has cheated on you, his or her spending is out of control, or you just can’t seem to get along anymore.  There are many reasons why marriages fail and getting divorced can be a long and complicated process.  Whether you are the one seeking a divorce or you just found out your spouse has filed, it’s important to get an experienced divorce attorney to help guide you through the emotional process of getting a divorce. 

A brief overview of how the divorce process works in Missouri: Continue reading “How to Get a Divorce in Missouri”

Divorce Mediation: The Basics

Divorce mediation is private and voluntary and it gives you the opportunity to end your marriage in an amicable way.  You can identify and discuss the issues, describe your interests and feelings, clear up misunderstandings, explore areas of compromise, and find points of agreement.  The mediator’s role is to help you negotiate your own agreement without taking sides. The goal is to reach an agreement that works for you – one that is based on your decisions.  A court can require a case to go to mediation, but it is still voluntary because mediation does not have to end in an agreement.

You can initiate mediation at any time, even if you have already filed for divorce. The process for beginning mediation after a court case has been filed differs by county so if you have already filed and are interested in pursuing mediation, consult with a family law attorney to find out  what your next steps should be. Continue reading “Divorce Mediation: The Basics”