When two or more lawyers decide to join forces to practice law together, they form a law office partnership. This partnership is governed by a partnership agreement that outlines the rules and regulations by which the partnership will operate. A law office partnership agreement is a vital document that should be taken seriously and crafted with care.

An effective law office partnership agreement should include the following provisions:

Business Organization: This section should outline the name of the partnership, the purpose for which it was formed, and the location of its principal office.

Capital Contributions: It specifies the amount of money or assets each partner will contribute to the partnership, as well as the procedure for adding or withdrawing capital from the partnership.

Profit Sharing: This provision outlines how profits and losses will be shared among the partners and how these numbers will be calculated. There are a variety of profit-sharing models to choose from, including the percentage of contributions made by each partner, an equal distribution, or a combination of the two.

Management: This provision outlines the responsibilities and powers of the partners. It also clarifies who has the authority to make decisions for the partnership, how decisions are made, and how disputes will be resolved.

Compensation: This section covers how partners will be compensated, including salaries, bonuses, and benefits. It should also include clauses outlining how partners will be compensated if they leave the firm, either voluntarily or involuntarily.

Admitting and Withdrawing Partners: This clause outlines the procedures for admitting new partners to the firm or terminating existing ones. It should specify the circumstances under which a partner can be removed and the process for doing so.

Dissolution: This provision explains the process for dissolving the partnership, including the distribution of assets and liabilities.

Confidentiality: This clause outlines the confidentiality obligations of the partners and the consequences of violating those obligations.

Non-Compete and Non-Solicitation: These provisions prohibit partners from competing with the partnership or soliciting or accepting business from clients of the partnership after leaving the firm.

The Bottom Line

A law office partnership agreement is a vital document that can help prevent misunderstandings and conflicts down the road. A well-crafted partnership agreement can also protect each partner`s interests and ensure the long-term success of the partnership. It is advisable to consult with a qualified attorney when drafting a law office partnership agreement to ensure it is in compliance with local laws and regulations.