Legal Definitions - fee-sharing

Fee-sharing refers to the division of attorney's fees between two or more lawyers. This can happen in two ways:

1. When a lawyer who handled a matter refers the matter to another lawyer, and they divide the fees earned from the case.
2. When two or more lawyers represent a client jointly, but they are not in the same law firm, and they divide the fees earned from the case.

It is important to note that some states consider fee-splitting unethical, and attorneys are prohibited from splitting fees with non-lawyers.

Example 1: Attorney A refers a personal injury case to Attorney B. Attorney B handles the case and wins a settlement of $50,000. Attorney A and Attorney B agree to split the fees earned from the case, with Attorney A receiving 25% and Attorney B receiving 75%.

Example 2: Attorneys C and D jointly represent a client in a divorce case. They work together to negotiate a settlement of $100,000. Attorneys C and D agree to split the fees earned from the case, with each receiving 50%.

These examples illustrate how attorneys can divide fees earned from a case when they work together or refer cases to each other. However, it is important to follow ethical rules and regulations when doing so.