Disbursement refers to the act of paying out money from a fund or settling a debt or account payable. When a company pays its employees’ salaries, it is considered a disbursement. The verb form of disbursement is disburse.
Disbursement refers to the action of paying money from a fund or settling a debt or payable account. For instance, a company may disburse $10,000 to its shareholders as a dividend payment, meaning that it pays out money from its funds to its shareholders. Similarly, when a loan amount is disbursed, the lender pays it into the borrower’s account. Lastly, in the case of a settlement, the defendant would disburse the settlement amount to the plaintiff’s attorney. In all these examples, the act of paying out money is known as disbursement.
A disbursement refers to the payment of funds or expenses made on behalf of a client by a lawyer or law firm. It can include costs such as court fees, expert witness fees, or other necessary expenses incurred during the legal process.
While legal fees are the charges for the services provided by a lawyer or law firm, disbursements are the out-of-pocket expenses incurred during the legal process. Legal fees are typically based on the time and effort put into a case, while disbursements are the actual costs incurred.
Yes, as a client, you have the right to request an itemized breakdown of all disbursements made on your behalf. This breakdown should include details such as the date, description, and amount of each expense incurred.
Generally, the client is responsible for paying disbursements. However, some lawyers or law firms may have different arrangements, such as requiring the client to pay a retainer upfront to cover both legal fees and disbursements.
In some cases, you may be able to negotiate the amount of disbursements with your lawyer or law firm. However, certain expenses, such as court fees, are typically fixed and non-negotiable.
If you win your case, it is common for the opposing party to be ordered by the court to reimburse you for reasonable disbursements. However, the specific rules and procedures for reimbursement may vary depending on the jurisdiction and the nature of the case.
If you are unable to afford the disbursements, you should discuss this with your lawyer or law firm. They may be able to offer alternative payment arrangements or explore options such as applying for legal aid or seeking third-party funding.
Disbursements are generally not subject to taxation as they are considered expenses incurred in the course of legal proceedings. However, it is always advisable to consult with a tax professional or accountant to ensure compliance with applicable tax laws.
If you believe a disbursement was unnecessary or excessive, you should discuss your concerns with your lawyer or law firm. They should be able to provide an explanation or justification for the expense. If you are still unsatisfied, you may consider seeking a second opinion or filing a complaint with the appropriate legal regulatory body.
The timeframe for paying disbursements can vary depending on the agreement between you and your lawyer or law firm. It is important to clarify the payment terms and deadlines upfront to avoid any misunderstandings or potential issues.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/disbursement/
- Modern Language Association (MLA):Disbursement. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/disbursement/.
- Chicago Manual of Style (CMS):Disbursement. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/disbursement/ (accessed: May 09 2024).
- American Psychological Association (APA):Disbursement. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/disbursement/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts