We’ve employed fixed fees in our practice for a long time. As a result, I get lots of questions from other attorneys seeking advice about the best way to set up fixed fees for their practices.

It’s tough for me to provide an answer because the sequence of events varies from jurisdiction to jurisdiction.

My state, for instance, does not require the initiation of a lawsuit to resolve property division, alimony, child custody, and support if the parties reach agreement.

Some states, the majority I believe, require that you file an action with the court regardless of whether you’re able to negotiate a resolution.

Each state has different rules regarding allowing counsel to withdraw from representation, and the progression of the case varies wildly from state to state.

Regardless of your state’s system, it’s important to avoid a trap that results in fixed fees causing you more harm than good.

The key is to avoid being locked into a case where the client has paid all attorneys’ fees and can now litigate without mercy.

If the client is paid in full and you must keep litigating, you’re giving the petty client the opportunity to turn every molehill into a mountain.

You need the fee structure to provide a disincentive to continued litigation.

If a client insists on fighting over a toaster oven, fine, but don’t let it be at your expense. You need a fee structure that encourages reasonable cost/benefit analysis.

Each time the client decides to press on with more litigation, there should be a need to pay for that service. Don’t let the client litigate without limitation.

In our jurisdiction, we stage the fees for litigation in phases. If the case settles before a fee is due, then the client pays no further fees. If the client chooses to press on, the client pays an additional fee.

In other words, we don’t charge by the hour for our services, but we charge by the stage. We want the client to feel some pressure related to fees without having to worry about the fees incurred for each and every interaction.

The fee must be organized in a manner that encourages economically reasonable behavior.

You need to be able to put the brakes on crazy behavior. Your fee arrangement is an essential element of that braking mechanism.

Fixed fees have worked well for us for more than a decade. It’s important, however, that you carefully develop your strategy for making them work for you.