Do Minors Pay a Lower Attorney Fee in New Mexico?

By the FigureMyTax Editorial Team · How we calculate

We found no New Mexico statute that caps injury contingency fees or sets a lower rate for a child. The fee comes from your written agreement, and the court that protects the child's money can look at it.

What we looked for

We searched the New Mexico provisions on payments to minors (NMSA 45-5-103), liens and limitation periods and found no percentage cap on a contingency fee and no separate fee rule for a minor. We did not read the Rules of Professional Conduct, so we cannot say what they require of a fee agreement.

Court review

If a court appoints a guardian ad litem or approves the settlement, the fee will be visible to it, and the guardian ad litem's fee is also deducted from the child's share. We did not read a rule on what fee information a court requires, so ask your lawyer.

A worked example

On a $60,000 settlement with a one-third fee ($20,000), $2,500 in costs and $8,000 in medical bills and liens, the child's net is $29,500, over $10,000, so it could not be paid in a single year under the simplified payment rule. At 25 percent the fee is $15,000 and the net $34,500. The New Mexico minor's settlement calculator lets you change the fee.

Other amounts that come out

Costs, medical bills and liens, and any guardian ad litem fee reduce the child's share. A hospital lien reaches only what remains after attorney fees and expenses; see what a lien can take from a settlement.

Ask before you sign

Ask for the fee agreement in writing and what the court will be told. Then read how the child's money may be held.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how New Mexico's rules apply to your specific case with a licensed New Mexico attorney.