Legal

Books and taxes for family law and divorce firms.

Retainers that get topped up mid-case, guardian ad litem fees, forensic accountant costs for splitting assets, and flat fees for the simple ones. Gus sorts it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
SeptemberExample month
$14,500
what you made

September came in at $14,500. The Alvarez retainer got topped up twice this month, so I logged both draws against the same matter instead of counting them as two separate wins.

  • Alvarez retainer drawRetainer billing
  • Osei flat fee, uncontestedFlat fee filings
  • Hartline & Associates GALGuardian ad litem costs
  • Whitfield Forensic AccountingForensic and valuation fees
  • County clerk filing feeCourt and filing fees
Money in$41,000
Money out$26,500
Set aside for taxes$3,200
An example month. Yours will have your numbers.

Why your books are different

Family law books go wrong in the same few places.

A generalist sees a retainer deposit and calls it income. Your business is a retainer that gets topped up as a custody fight drags on, a guardian ad litem fee split between two parties, and a flat fee that turns into hourly work the day the other side lawyers up.

  1. 1

    A retainer deposit is not automatically income

    Money that lands as a retainer belongs to the client until it is actually earned by billed work, and any unused balance is owed back when the case closes. Booking the whole deposit as income the day it arrives overstates what the firm has actually earned.

    What we doTracks retainer draws as they are billed against, not the day the deposit lands, so income reflects work actually done.
  2. 2

    A topped-up retainer hides what a fight is really costing

    A contested custody case that gets refilled three times over six months can look like three separate wins instead of one expensive matter, which makes it hard to see which cases are actually profitable to take on.

    What we doKeeps every retainer draw tied to the same matter, so you can see the full cost of a drawn-out case, not just each top-up in isolation.
  3. 3

    A flat fee turns into hourly mid-case

    An uncontested divorce quoted as a flat fee sometimes becomes contested once the other spouse hires counsel, and the firm needs to shift to hourly billing without losing track of what the flat fee already covered.

    What we doFlags when a flat-fee matter starts generating additional hourly charges, so the switch is visible instead of buried.
  4. 4

    Guardian ad litem and evaluator fees get split unevenly

    A custody evaluation or a guardian ad litem fee is often paid up front by one party and later split or reimbursed by the other, and if that split is not tracked, it looks like the firm absorbed a cost it will actually get back.

    What we doBooks what the firm advances for evaluators and guardians ad litem as its own line, separate from ordinary overhead, so reimbursements are easy to match up.
  5. 5

    Forensic accounting fees on asset division get lost in overhead

    Dividing a business, a pension, or investment accounts often means bringing in a forensic accountant, and that cost can get buried in general expenses instead of tracked against the specific high-asset case that needed it.

    What we doKeeps forensic and valuation fees in their own line, so you can see what a complex asset case actually costs to run.

Your categories

The categories Gus keeps for a family law firm.

Set up once for how retainers get billed and what gets advanced along the way. You never pick a category. He does, and an accountant checks it.

Money in

  • Retainer billingHourly work billed and drawn down against a client's retainer.
  • Flat fee filingsUncontested divorces, simple modifications, and other defined-scope work.
  • Reimbursed evaluator costsWhen the other party or the client repays a guardian ad litem or custody evaluator fee.
  • Court-awarded feesThe occasional order requiring one party to cover the other side's attorney fees.

Money out

  • Guardian ad litem costsFees advanced for a court-appointed representative for the children.
  • Forensic and valuation feesAccountants and appraisers brought in to divide a business, pension, or investments.
  • Court and filing feesClerk fees for petitions, motions, and modifications.
  • Mediation costsFees for a mediator when a case is sent to try to settle outside court.
  • Staff and paralegal wagesThe people who move discovery and filings through a busy custody docket.
  • Legal research subscriptionsWestlaw, LexisNexis, or a similar service.
  • Malpractice insuranceAnnual or quarterly professional liability premiums.

What we watch for you

  • Retainer balance trend

    Whether client retainers are being drawn down faster than they are replenished, a sign a case is running longer than quoted.

  • Flat fee to hourly conversion

    How often flat-fee matters turn hourly, worth knowing when quoting the next uncontested case.

  • Advanced evaluator costs

    What has been fronted for guardians ad litem and forensic experts and not yet reimbursed.

  • The set-aside

    What the firm will owe, tracked every month, so tax season is a number you already know.

Ask Gus

Things family law attorneys ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

The Alvarez retainer got refilled twice this month. Does that count as new income each time?

No, I keep every draw tied to the same matter, so you can see the whole case cost, not three separate wins that make the month look bigger than it is.

We paid $2,200 for a custody evaluator and the other side owes us half. Where does that sit?

I booked it as an advanced cost, not an expense, so it stays visible as money owed back once the other party pays their share.

Do I need to send a 1099 to the forensic accountant we brought in on the Whitfield case?

If you paid them $2,000 or more this year and they are not on payroll, yes, a 1099-NEC by January 31. I keep that list running as the year goes.

The tax side

The tax side of a family law practice.

Most of what goes wrong here is timing and labels. A retainer counted as income too early, an advanced cost treated as spent instead of owed back, and a set-aside built on an average month a contested docket does not actually have.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Retainer income is counted as it is earnedMoney held as a retainer becomes income when it is billed against, not the day it is deposited. Booking it too early overstates what the firm has actually earned that month.
  • Advanced fees need a 1099A forensic accountant, appraiser, or other non-employee paid $2,000 or more in 2026 gets a 1099-NEC by January 31, whether or not the other party later reimburses the cost.
  • The pass-through deduction has a ceilingMost owners can deduct up to 20 percent of business profit, but law counts as a specified service trade, so a strong year of retainer billing can push taxable income above $201,750 single or $403,500 joint, where the deduction begins to shrink.
  • Employee or contractor for a contract paralegalA paralegal who sets their own hours and works for more than one firm often looks like a contractor, while one who works your schedule under your supervision usually looks like an employee. Getting it wrong gets expensive.

Deductions family law and divorce firms miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Bar dues and CLE
  • Malpractice insurance
  • Legal research subscriptions
  • Case management software
  • Forensic and appraisal fees on complex cases
  • Court and filing fees on the firm's own matters
  • Mediation session fees
  • Mileage to court and evaluator meetings
  • E-filing and PACER fees
  • Payment processing fees
  • Office rent and utilities
  • Answering or intake service fees

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A family law year, kept every month.

Custody dockets do not follow the seasons. Gus keeps the set-aside honest through a quiet stretch or a full one. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, the 1099 list for evaluators and forensic experts is ready, and a monthly set-aside is planned around retainer billing.

  2. April

    Filed, custody season or not

    Your return is filed and signed, whether the spring brought a quiet docket or a full one. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where the firm stands, what retainers are drawing down faster than expected, and whether the set-aside still fits.

  4. October

    Before year end

    A look at outstanding evaluator reimbursements and any equipment or software worth buying before December.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for family law and divorce firms. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions family law attorneys ask first.

Can Gus manage our client trust account for retainers?

No. Client trust accounts have strict state bar rules around commingling and reconciliation that your ethics counsel or a trust accountant handles. Gus works only from the firm's operating account, after retainer funds have already been billed against and moved.

How does Gus handle a retainer that gets refilled mid-case?

Every draw stays tied to the same matter, so a case that gets refilled three times shows up as one expensive case, not three separate deposits that make the month look better than it is.

We quoted a flat fee and the case turned contested. Now what?

Gus flags when hourly charges start showing up on a flat-fee matter, so the shift is visible and the accountant can help you see what the flat fee actually covered against what came after.

How does Gus track guardian ad litem costs we expect to get reimbursed?

They go in as an advanced cost, not a plain expense, so what is owed back once the other party pays their share stays visible instead of disappearing into overhead.

My caseload swings hard between busy and quiet. Does that mess up my taxes?

No. The set-aside is built around what actually lands each month, not an assumed average, so a quiet stretch between contested cases does not leave you owing more than expected in April.

Can Gus tell me whether a case is actually profitable once the retainer keeps getting refilled?

Yes. He keeps every draw tied to the same matter, so once a case closes you can see its full cost against what it billed, not just how the month looked while it was open.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever