Fees. Attorney’s fees are usually determined by the difficulty of your case, the lawyer’s experience and reputation, and/or the result obtained. It’s expensive to hire a lawyer. According to a 2006 survey of law firms, the median hourly billing rate for law firm partners is $305 an hour and $200 an hour for associates. Rates vary by geographic region, with the highest hourly rates for partners and associates reported in the Middle Atlantic region.

There are three common types of fee arrangements.

• Hourly Fees - Lawyers often charge an hourly rate for the time they spend on a case. For example, a lawyer may charge $170 per hour. If your matter takes only one hour, your attorney’s fees would be $170. If your matter takes 10 hours, your fees would be $1,700. The disadvantage is that you do not know until the end how much it will cost. When charging by the hour, some lawyers require a "retainer," which is a deposit paid by you in advance—hourly fees and costs (discussed below) are then charged against this deposit. If your lawyer requires a retainer, it should be made clear whether any unused portion is refunded to you at the end of the case.
• Fixed Fees - Some lawyers will charge a flat fee set in advance. This is particularly common for simple, easy-to define matters such as wills.
• Contingent Fees - These fees depend on the outcome of your case. They are commonly used in personal injury matters. For example, if you are not successful in recovering any money, then no attorney’s fees are paid. If a recovery is made, then the attorney’s fees are based on a percentage of the recovery. This contingency arrangement applies only to the attorney’s fees and not to costs. The client must pay the costs, regardless of the result. Attorneys sometimes require an advance deposit to be used for the payment of costs.

Costs. Payments made to third parties - or "costs" - are always an additional expense the client must bear. Some common examples of costs include court costs for filing fees and serving papers, costs paid to reporters for depositions and costs paid to investigators. Oftentimes you will pay these expenses through your lawyer.

Sometimes lawyers consider certain overhead expenses to be costs. They will charge separately for such items as photocopying, long distance telephone calls and computer research. Before work begins on your case, you should have a clear understanding as to whether such expenses are included in the lawyer’s fee or are billed separately. All of these matters can be made clear in a written fee agreement between you and your attorney.