Have you ever wondered what a typical lawyer earns in a year? If you think all attorneys are bringing home a substantial salary it may surprise you that this isn’t always the case. Just like there are ‘starving artists,’ some lawyers can also struggle to make ends meet.
For example, only around 10% of lawyers earned $208,000, and even this isn’t enough to cover extravagant living expenses. So, which type of attorney is bringing home the highest pay? The answer depends on the type of law the attorney practices, along with a few additional factors.
Factors Affecting Earning Potential for Attorneys
Lawyers rarely land high-paying jobs right after passing the bar exam, so forget those Hollywood movies depicting recent graduates settling into corner offices at prestigious law firms. Most attorneys spend years, and sometimes decades, working their way to the top. Even then not all attorneys reach the top tier at the firm.
How long an attorney has been practicing law plays a role in their annual earnings, and this is often true for attorneys who choose to open their own legal practices. You need to build a reputation as a skilled attorney before you can attract higher-paying clients.
Where the attorney decides to practice law can also impact their pay—yes, location can affect an attorney’s potential earnings. Practicing attorneys in states like California, New York, and Massachusetts can earn significantly more than a lawyer based in Montana or West Virginia.
However, before you decide to pack up and move to another state it’s a good idea to make sure you’re not joining a long line of other attorneys relocating to the same area.
If you are planning a move to increase your salary, Massachusetts may be a good idea. Currently, the state is seeing an uptick in the profession’s growth. In other words, lawyers are in demand in the Granite State, and this can help boost your earning potential. Along with experience and location, the type of law you decide to practice impacts your potential salary.
Types of Attorneys with the Highest Earning Potential
Before you rush out and change your legal specialty, remember that this is only a glance at earning potential. Not all attorneys, regardless of their field of expertise, will make the same salary.
For example, personal injury attorneys often top the earnings list, but not every lawyer is at or above national averages. With that being said, here’s a look at some of the top-earning legal fields.
Personal Injury and Medical Malpractice Attorneys
Going into personal injury law is a popular option. As a personal injury attorney, you really don’t need to worry about job security. Accidents happen every day, and this can mean a steady stream of clients.
Your salary is typically on a case-by-case basis. Your fee structure is also a little different than it is for other types of lawyers like a criminal defense attorney. Most personal injury lawyers work on contingency fees, which means you don’t get paid unless your client successfully settles their case.
Once the case is settled, your fees are deducted from the settlement check. Depending on the type of accident and the defendant, some personal injury cases can have substantial payouts.
The same is also true for medical malpractice attorneys. As a personal injury attorney, you may also want to branch out into medical malpractice claims. However, you can also choose to specialize solely in medical malpractice cases. The choice is yours, along with how much you want to earn each year.
Corporate Lawyers
Yes, corporate law can be boring and sometimes even a little stuffy. However, if the thought of handling business contracts, tax issues, acquisitions, and company litigation is appealing, you may be a good fit for corporate law.
Since you have a base salary that can occasionally come with bonuses, it’s a little easier to plan for your financial future. You have a pretty good idea of what your annual salary will be like. In comparison, personal injury attorneys often only have a vague idea of what they may earn each year.
Where you decide to practice corporate law and your experience can also affect your earning potential. Remember, average salaries can vary from state to state. You may be performing the same job as an attorney in Massachusetts but are earning significantly less since you’re practicing in Montana.
Criminal Defense Attorneys
There are two basic types of criminal defense attorneys. Which career path you take will affect your potential earnings. You can go into private practice or work as a court-appointed defense attorney. If your goal is to help individuals who can’t afford legal representation, working as a court-appointed defense attorney is probably the way to go.
However, if you’re itching to work on high-profile defense cases, you’re going to want to go into private practice. This is also another time when location and experience will significantly impact your take-home pay.
Bankruptcy and Probate Lawyers
You may not earn as much as some other types of lawyers, but you’re providing a much-needed service to the community. Individuals going through bankruptcy proceedings typically don’t have a lot of resources to spend on legal counsel. However, these are also the individuals who often need plenty of advice navigating the bankruptcy court process.
If you also specialize in probate law, you can maximize your potential earnings, as probate lawyers can earn a little more than bankruptcy attorneys. By combining the two similar legal fields, you may be able to almost double your annual salary.
Intellectual Property and Patent Attorneys
Are you interested In the latest ideas and inventions? If so, this specialized legal field may be a great career option.
Since intellectual property and patent law are specialized, you can automatically earn a little more than some other types of practicing attorneys. This can be one of the few times when the location of the legal practice doesn’t negatively impact your earnings.
Choose a Legal Field You’re Passionate About
Choosing a legal field based on potential earnings is common, and there’s nothing wrong with it. After all, you’re probably staring at significant school debt. Going through law school isn’t cheap, and you want your career to start paying off.
However, you may also want to consider what type of law you’re passionate about. Sometimes, helping others navigate the legal process can make up for a slightly smaller salary.
