Monday, August 24, 2009

Securing Legal Fees

There is a way, when, as now the real estate market seems to be on the rise, that clients can secure their lawyers' legal fees for services rendered in family law matters (including divorce, custody, visitation, support, enforcement, collaborative law and mediation). It is called "Family Law Attorney Real Property Liens" ("FLARPLs"), which provide an alternative means for payment of fees and costs in ". . . a proceeding for dissolution of marriage, for nullity of marriage, or for legal separation of the parties." (Fam. Code §2033.) These liens originated under common law, but are now codified in Family Code sections 2033 & 2034, where the modern guidelines are set forth. These FLARPLs prevent the use of a bankruptcy petition to discharge the attorney's claim for fees and costs. Section 522 of the Bankruptcy Code permits the debtor to avoid certain liens on exempt property, such as the former marital residence. The reason for the statute is to protect the debtor’s exemptions in order to facilitate his "fresh start." Although this is indeed important, this concept only applies to "judicial liens." It is unclear whether a FLARPL is a statutory lien or a judicial lien. However, the statutory text of the Family Code and cases which are similar suggest that a FLARPL is a statutory lien that cannot be avoided, if properly perfected.

1 comment:

  1. Thanks for this posting.
    Your blog is very knowledgeable!! Keep it always updated.
    Cobleys LLP Solicitors have over 28 years experience in Family Law Lawyers.

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