It’s exciting to get a new client. You’re facing a new legal challenge and you’ve got an an opportunity to make a difference in your client’s life. You’re getting to know someone new and learn about the challenges they face. It feels good to know they trusted you enough to select you at this critical time.

But, but, but, this is a business. It’s essential that you run your operation as a business. You’ve got to get paid and you shouldn’t get excited about a new case until you’re sure you’re going to get paid. In fact, you should not take any action on behalf of the client until you’re certain that your business is guaranteed payment for the work.

There are plenty of ways to ensure payment. They differ by jurisdiction and practice. Some firms take fixed fees, in advance. Some secure retainers for their trust account. Some obtain a security interest in property to guarantee payment. The way you do it is less important than being certain you do something that absolutely, positively secures the payment of your fee.

It is not an acceptable business practice for you to extend credit. It doesn’t matter how reliable the client is. It doesn’t matter how able they are to pay. You’ve got to secure payment, in advance.

You can’t be certain that a client, solidly able to pay your bill, is going to be WILLING to pay your bill. People experiencing divorce don’t always behave in predictable ways, right? You learned that, probably the hard way, on your first case. You can’t count on, even the most credit worthy client, to make payment when due. You’ve got to get your payment taken care of in advance if you want to avoid problems down the road.

Even credit worthy clients decide they don’t want to pay. That leads to collection actions, malpractice counterclaims, disciplinary complaints, etc. If you don’t extend credit you eliminate a bunch of problems at the end of the case.

You’ve got enough trouble managing a family law practice. Stay out of the banking business. Don’t extend credit. Leave that to the bankers.