What are "disbursements" in the context of legal fees?

Disbursements refer to out-of-pocket expenses that a paralegal or lawyer incurs while providing legal services on behalf of a client. This can include costs such as filing fees, charges for obtaining documents, courier services, and other necessary expenditures that are directly related to a case or transaction. These expenses are distinct from legal fees, which are the amounts charged for the professional time and expertise of the paralegal or lawyer.

This understanding is critical because disbursements are typically passed on to the client in addition to the professional fees, and they must be itemized and justified as part of the billing process. Being aware of what constitutes disbursements helps paralegals manage clients' expectations regarding total costs and ensure transparency in billing practices.