For many lawyers, strategic retirement represents the next chapter in their lives and the sale of a law practice funds the happy retirement. However, retiring from a legal career often involves intricate planning and a careful consideration of the legacy left behind. The "Sale of Law Practice" is a well-regarded exit strategy, especially when done in accordance with the American Bar Association (ABA) Rule 1.17. This approach ensures a smooth transition for both the retiring lawyer and their clients while upholding ethical standards.
Sale of Law Practice Benefits Financial Security: One of the most significant advantages of selling a law practice is the financial benefit. Established practices with a loyal client base can command substantial value, providing financial security for retirement. Client Continuity: The sale of a law practice facilitates a seamless transition of clients to a new attorney, ensuring that their legal…ABA Rule 1.17 Sale of Law Practice
ABA Rule 1.17 Sale of Law Practice
Read more about ABA Rule 1.17 Sale of Law Practice Lawyers should review ABA Rule 1.17 before buying or selling a law practice. Some states have enacted versions of ABA Rule 1.17. Lawyers are urged to consult with ethics counsel to review the version of ABA Rule 1.17 that was adopted in the applicable jurisdiction.
The sale of a law practice has not always been allowed. Historically, sole practitioners were out of luck when they retired. Law practice sales were prohibited. Sole practitioners' counter-parts in small and not-so-small firms had an advantage by selling to associates or other partners who would continue the practice. That unfair advantage was neutralized with the adoption of ABA Rule 1.17.
ABA Rule 1.17: Client-Lawyer Relationship,
A lawyer or a law firm may sell or purchase a law practice, or an area of law practice, including good will, if the following conditions are satisfied:
(a) The seller ceases to engage in the private pr…