Law firm breakups can be contentious. If one partner decides to leave, it can have a major impact on the firm’s business. Especially if the departing partner takes clients with them.
If you’re a partner considering leaving your law firm, it’s important to understand the potential consequences. Here’s what you need to know about what can happen when a partner leaves a law firm.
The Remaining Partners May Owe Money to the Departing Partner
If you’re a partner who is thinking about leaving your law firm, you may be owed money by the remaining partners. This is because, when a partner leaves a law firm, they are typically entitled to a share of the profits that they helped generate while they were at the firm.
This means that, if you’re owed money by your former law firm, you may be able to negotiate a payout from the remaining partners. However, if you’re not able to reach an agreement, you may need to take legal action to get the money that you’re owed.
The Departing Partner May Be Sued by the Remaining Partners
If a partner leaves a law firm, they may be sued by the remaining partners. This is because, when a partner leaves a law firm, they may take clients with them. This can have a major impact on the profitability of the firm.
If the departing partner takes clients with them, the remaining partners may sue for breach of contract or tortious interference. In some cases, the court may order the departing partner to pay damages to the remaining partners.
The Departing Partner Will Have to Transit Information Technology Services
When a partner leaves a law firm, they will have to transit information technology (IT) services. This is because, when a partner leaves a law firm, they typically take their share of the IT services with them. This can leave the remaining partners without enough IT support.
If the departing partner takes IT services with them, the remaining partners may have to hire new IT vendors. IT services do not transit smoothly, it can have a negative impact on the firm’s business.
The Remaining Partners May Have to Dissolve the Firm
If a partner leaves a law firm, the remaining partners may have to dissolve the firm. This is because, when a partner leaves a law firm, they typically take their share of the profits with them. This can leave the remaining partners without enough money to keep the firm afloat.
If the remaining partners can’t agree on how to divide the assets of the firm, they may have to go to court to have the firm dissolved. This can be a lengthy and expensive process.
As you can see, there are a number of potential consequences of a partner leaving a law firm. If you’re a partner who is thinking about leaving your firm, it’s important to understand the potential implications before you make any decisions.