When managing legal matters, cost is often top of mind. Many people turn to online legal documents to save money, not realizing that this “cost-effective” solution may lead to much more expensive issues down the line. Though online legal documents may appear to provide the forms you need, relying on a service to draft these crucial documents can create serious legal complications. Here’s why using an online legal document drafting service could be the most costly mistake you make.
The Risks of Online Legal Documents: A False Sense of Security
Online legal documents are tempting—they’re quick, convenient, and often inexpensive. However, they offer a false sense of security. These services frequently use generic templates to draft legal documents, leaving out critical elements unique to your situation. Personal or business matters require customized legal language, a tailored approach, and expertise in applicable laws, which online services simply cannot provide.
For example, an online template for a prenuptial may leave out or misrepresent crucial financial information that will render the agreement invalid or unenforceable. Without a lawyer’s careful eye, these omissions could expose you to legal disputes, financial liabilities, or contract breaches—consequences that could have been avoided with a professional’s guidance.
Limitations of Online Legal Document Services
Most online legal document providers include disclaimers stating that they are not law firms and cannot offer legal advice. This disclaimer is crucial; it highlights that these services are not designed to ensure the accuracy or completeness of legal documents.
When using an online service, clients often don’t realize that:
- The documents are often too generic: These documents are intended for a broad audience and may not address specific requirements based on local laws or unique circumstances.
- The service can’t provide legal advice: Questions about your document can’t be answered, leaving you with potential misunderstandings about your rights or obligations.
- Customization is limited: Templates are rarely adaptable enough to handle the nuances of each unique case.
For example, suppose you’re drafting a business operating agreement. An online template may not account for the specific roles, responsibilities, and decision-making processes needed for your business, which can lead to misunderstandings or disputes between partners.
Real Costs of Choosing the Wrong Legal Document
While the initial cost of online legal documents may be lower than hiring an attorney, consider the potential hidden costs. A poorly drafted document can lead to expensive court battles, regulatory penalties, or tax consequences—all far exceeding any initial savings.
A few common issues that arise from generic online legal documents include:
- Contracts with unenforceable terms: Poorly worded contracts or missing essential clauses can result in disputes that may lead to costly litigation.
- Property and estate issues: Property ownership documents, wills, and trusts need to be drafted with clear and specific instructions to avoid family conflicts and probate complications.
In one case, a business owner relied on an online service for a partnership agreement. When disputes arose, the agreement’s vague language failed to protect the client’s rights, and he had to spend thousands of dollars to resolve the dispute—costs that a carefully drafted contract could have easily prevented.
Benefits of Hiring a Professional Attorney
Working with a licensed attorney gives you access to specialized legal knowledge, experience, and local expertise. Attorneys can tailor each document to your unique needs and ensure compliance with state and federal laws.
- Customized Documents: A lawyer ensures that your documents reflect your specific situation, objectives, and risk factors.
- Clear Explanations: Attorneys provide thorough explanations of each document’s content, so you fully understand your rights and obligations.
- Ongoing Support: Legal needs often change over time. A dedicated attorney can help you make necessary adjustments as your business or personal circumstances evolve.
- Legal Advice and Strategy: Lawyers are uniquely qualified to provide legal advice, foresee potential issues, and help develop a legal strategy that aligns with your goals.
When to Avoid Online Legal Documents and Consult an Attorney
The most significant times to avoid online legal documents are when your matter involves:
- Business formation or restructuring
- Estate planning, including wills and trusts
- Complex contracts with unique terms
- Real estate transactions
- Employment and labor agreements
Each of these situations requires specialized knowledge, customized language, and the professional insight that only an attorney can provide.
DRS: Protecting Your Legal Interests
Using online legal documents to save money may lead to costly mistakes and legal headaches. At Dempsey, Roberts, & Smith, we understand the importance of getting it right the first time. If you’re considering using online documents, take a moment to think about the potential risks and the value of personalized legal guidance. Contact our team to ensure that your documents are carefully tailored, legally sound, and set up to protect your interests for the long term.