Legal fees are one of the biggest concerns for people going through a divorce, particularly if one spouse is in a much stronger financial position than the other.
For those struggling to afford legal representation, a Sears Tooth Agreement may offer a way forward.
In this article, we’ll explain what a Sears Tooth Agreement is, how it works in UK divorce proceedings and when it may be the right option for you.
What is a Sears Tooth Agreement?
A Sears Tooth Agreement is a legally binding contract between a client and their lawyer. It is usually used where the marital pot is over £1 million and so on a 50-50 split the client would recover at least £500,000.
Under this agreement, the lawyer agrees to defer payment of their legal fees until the end of the case, in exchange for the right to recover their fees from the financial settlement which the client receives.
Usually it will set a fee structure up to 1) the first appointment hearing, 2) then up to FDR, and 3) then up to a final (evidential) hearing (if applicable given many cases settle at FDR).
This type of agreement is often used in divorce and family law cases, where one party may not have the resources to fund legal proceedings but expects to receive a share of marital assets.
How did the Sears Tooth Agreement get its name?
The Sears Tooth Agreement is named after the London law firm Sears Tooth, which pioneered this type of funding arrangement in family law cases.
The term gained legal recognition following the 1997 case Sears Tooth (A Firm) v Payne Hicks Beach (A Firm), which confirmed that a solicitor could secure an equitable charge over a client’s future financial settlement to cover unpaid legal fees.
The case set a key precedent for the use of these agreements in divorce proceedings, particularly where one party lacks immediate access to funds.
How does a Sears Tooth Agreement work?
When you sign a Sears Tooth Agreement, you agree to assign part of your future financial settlement to your lawyer. This means:
- We will carry out work on your case without requiring payment upfront.
- When the case is settled and you receive your financial award (e.g. from property, pension or lump-sum payments), we are paid directly from that settlement.
- We register an interest in your award, ensuring we get paid before the remainder is released to you.
The agreement only covers legal fees and disbursements related to your case – it does not apply to personal debts or general expenses.
Who can use a Sears Tooth Agreement?
Sears Tooth Agreements are most commonly used by individuals who:
- Have limited access to funds or income during divorce proceedings.
- Are likely to receive a substantial settlement or financial award.
- Cannot access other funding options, such as litigation loans or borrowing from family.
These agreements are generally not suitable for people with no realistic expectation of receiving a financial settlement.
When is it appropriate?
Some common situations where a Sears Tooth Agreement may be helpful include:
- One spouse controls most or all of the family finances.
- The client has been financially dependent throughout the marriage.
- The client cannot afford to pay legal fees until after assets are divided.
In many cases, the agreement levels the playing field, allowing the financially weaker spouse to access strong legal representation.
Are there any risks?
While a Sears Tooth Agreement can be a useful solution, there are a few important considerations:
- Loss of control over funds: We will be entitled to take their fees from your settlement before you receive any money.
- Costs can add up: Legal fees may grow over time, especially in lengthy or complex cases. It’s essential to understand our hourly rates and estimated costs before entering the agreement. This is why working with us can be beneficial – offering transparency and cost control from the outset, particularly for those concerned about rising legal bills.
- Limited to family law: Sears Tooth Agreements are usually only used in divorce and financial remedy proceedings. They are not applicable in most other areas of law.
How is it different from Legal Aid or Litigation Funding?
- Legal Aid is no longer widely available for divorce cases unless there is evidence of domestic abuse. A Sears Tooth Agreement offers an alternative for those who don’t qualify.
- Litigation loans are another option, but they typically involve interest and credit checks. A Sears Tooth Agreement does not require a loan. It is an arrangement directly with your solicitor.
Is a Sears Tooth Agreement legally enforceable?
Yes, it is legally enforceable. However, the agreement must be clearly written and the client must understand the implications before signing. Courts may scrutinise the agreement to ensure it is fair and not exploitative.
Reputable lawyers will provide full transparency about costs and ensure clients receive independent legal advice where appropriate.
Does no-fault divorce make a difference?
With the introduction of no fault divorce in the UK, divorcing couples no longer need to assign blame to end their marriage. While this streamlines the divorce process, financial disputes still often arise. A Sears Tooth Agreement can help ensure both parties have fair access to legal advice and representation, particularly when negotiating financial settlements.
Get clear advice on divorce funding and financial settlements
If you’re facing divorce and unsure how to cover legal fees, we can talk you through your options – including whether a Sears Tooth Agreement is right for you.
We offer a free 15 minute consultation to help you understand your legal position and available routes. Contact us on 01913692383
