Breaking Up Is Hard To Do, Part 1

I am retained by financial advisors as their coach through bad breakups with their partners, and if unresolved, as their litigation lawyer to fight for what is rightfully theirs. In this article, the first of a two-part series, I will unpack some of the risks that advisors must consider before and during their partnerships with other advisors. Part 2 will unpack how to reduce these risks.

Advisors' partnerships can reflect different permutations and combinations. Here are some of the more common partnerships I have seen:

A junior and a senior advisor team

The junior advisor may initially be hired as an employee/assistant and paid a set salary sometimes with a bonus. The senior advisor is the sole advisor on the code and therefore earns the entire split with the dealer.