Disbursements: A Comprehensive Guide to Legal Expenditures

Definition & Meaning

Disbursements refer to the process of paying out money, particularly in legal contexts. It encompasses the expenses that an attorney incurs on behalf of a client while preparing a case. These expenses can include costs for photocopying, mailing, court fees, and payments for expert reports. Essentially, disbursements are the financial outlays that attorneys pass on to their clients as part of the legal service.

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Real-world examples

Here are a couple of examples of abatement:

For instance, if an attorney needs to file court documents, they may incur a court filing fee of $200. This fee would be considered a disbursement and charged to the client. Another example is when an attorney hires a medical expert to provide a report for a case, which may cost $1,500. This expense is also classified as a disbursement.

State-by-state differences

Examples of state differences (not exhaustive):

State Disbursement Practices
California Attorneys must provide a detailed breakdown of disbursements to clients.
New York Clients may be charged for disbursements only if agreed upon in the retainer agreement.
Texas Disbursements must be reasonable and necessary for the case.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition
Expenses General costs incurred in the course of business, not specifically related to legal services.
Fees Payments made to attorneys for their services, distinct from disbursements.

What to do if this term applies to you

If you are a client and disbursements apply to your case, review the breakdown of costs provided by your attorney. Ensure you understand what each charge is for and how it relates to your case. If you have questions, don't hesitate to ask your attorney for clarification. You can also explore US Legal Forms for templates that can help you manage and document these expenses. If your situation is complex, consider seeking professional legal assistance.

Quick facts

  • Disbursements include costs like court fees and expert reports.
  • Clients are responsible for reimbursing these costs.
  • Disbursements are distinct from attorney fees.

Key takeaways

Frequently asked questions

Disbursements can include court fees, expert witness fees, and costs for document preparation.