Law practice software eases transition during law office splits
There may be a time when a law firm decides to break up into smaller firms to allow for more focus on specialized areas of the law, or a partner may act as an independent rather than part of a large organization. If this happens, it’s important to handle the division correctly from the start, and law management software is an essential tool in the process.
Law Administration Software Considerations
Only one office will retain the license for the law practice software. The other will probably choose to continue using the same familiar application, but will need to purchase another user license. Will this cost be shared by both offices or will the burden fall on a single practice?
Other than the software, who owns the information? Case and client databases are valuable components of your business. Will the database be retained by a single company, copied to both, or divided according to each company’s respective customer lists? Regardless of the split, pre-split information must be separated from new customer information. Many law practice software applications allow you to create multiple databases and easily switch between old and new databases.
Legal and financial issues
A written agreement should clearly explain not only the legal management software concerns mentioned above, but also include details such as how clients will be divided and how to handle new conflicts of interest. Rather than handle this deal yourself, consult an outside company that specializes in trade deals.
Practice finances can be complicated, as income and expenses are not always properly paid by the date of separation. Expect a transition period in which there will be a separate account to handle profits and joint costs incurred before the split. Law practice software will be essential to keep these joint assets separate from the individual assets of each company.
Communication with customers and employees
Breaking up a business creates anxiety. Employees fear for their jobs, while customers worry that they won’t get the help they need in the future. The best way to eliminate everyone’s fears is to keep the lines of communication open.
Guarantee employees job security after the spin-off. If layoffs are necessary, hire a recruiting company to find other positions for them. This is not just the professional thing to do as a business owner; it also protects your company from liability and boosts the morale of the remaining employees.
Inform customers of the division well in advance so they don’t find out from anyone else. Define roles for each new practice and let clients know who future contacts will be. Maintain uninterrupted service during the transition. Use your law management software to produce complete and accurate client lists to ensure everyone is notified, including clients who haven’t been in the office for a while.
Even if the division will bring positive changes, the transition will be difficult. Think ahead, plan carefully, and use legal practice software to smooth out the bumps in the road.