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WHENEVER RETAINING AN ATTORNEY FOR A FAMILY LAW RELATED MATTER, PLEASE NOTE EACH RETAINER AGREEMENT MUST HAVE CERTAIN PROVISIONS [R. 5:3-5]
All matrimonial retainer agreements must have the following nine elements:
- Description of the legal services to be provided
- Specific statement of any services intended not to be covered by the agreement.
- The method by which the fee will be computed.
- The amount of the initial deposit or retainer and how that retainer will be used.
When bills are to be provided to clients (not less than once every 90 days, if services have been provided); when the client is to make payment; whether the client will be charged interest; and whether or not the initial retainer must be replenished.
- The name of the attorney having primary responsibility for the matter, and his or her hourly rate, as well as the same information as to any others who may also work on the matter. Whether and how often rate increases will be permitted.
Expenses and disbursements for which the client will be responsible and how they will be paid.
- The effect of counsel fees awarded on application to the Court.
- A statement of the attorney's right to withdraw from the case if the client does not comply with the agreement.
INTEREST ON UNPAID COUNSEL FEES [ R. 5:3-5(b); R. 1:21-7(a)]
If interest is to be charged on delinquent fee accounts, the attorney must include in the retainer agreement, the amount of interest to be charged. In addition, no interest may be assessed sooner than 30 days after the client's receipt of a written statement.
SECURITY INTEREST IN CLIENT'S PROPERTY [R. 5:3-5(a)]
Matrimonial attorneys are expressly prohibited from taking a security interest (ie. mortgage or other lien) in a client's property.
WITHDRAWAL FROM REPRESENTATION [R. 5:3-5(d); R. 1:11-2]
Judges are permitted to allow counsel to withdraw from representation if a client does not comply with the retainer agreement. The amendment also sets forth factors for the judge to consider, and the procedure to be followed in such cases.
NON-REFUNDABLE RETAINERS [ R. 5:3-5 (b)]
Non-Refundable retainers are prohibited for matrimonial matters.
CONTINGENT FEES
Contingent fees are not permitted in matrimonial matters, except for proceedings involving claims of tortious conduct of another (such as personal injury from violence, or damages for transmission of sexually transmitted diseases). |