If your spouse was a big law counsel/senior associate & did not make partner the first time up, then

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The best situation I can equate to partnership voting is fraternity/sorority rush deliberations. If he has heard he has a good shot, then he'll probably make it. The money gets SO much better as a partner, but the work demands are intense.

It took DH about 5 years as partner/slave before the money really started on the uptick. But his firm's capital requirement is huge.

These are interesting statements concerning capital requirements and the money you earn once becoming partner. I heard once you are a partner your salary (or draw) is reduced by at least 25%, you must buy into the partnership via a low interest loan to fulfill your capital contribution requirement, but that you receive a percentage of the firm's profits either quarterly, semi-annually, or at the end of the year. I viewed an article a few months ago where newly crowned partners said they did not realize how much their total take-home pay would be reduced even with the profits distributions. The new partners says that noone wants to discuss this because people assume once you are partner you are raking in tons of money. Has anyone experienced this?

Every firm is different in terms of how they structure partner payments. My DH is a second year full equity partner at a big DC firm. The capital contribution was handled by the firm through a low interest loan, so we never felt the hit. We pay about $150 a year in interest and the loan would be paid off if he left the partnership. The firm also pays half his income in monthly installments (which are more than plenty for anyone to live on), does tax distributions 4 times a year to cover estimated tax payments, and then gives the rest in big chunks at regularly scheduled times. We were given a schedule of expected profit income payments for the next five years before he made partner, so we knew pretty much what to expect. I will say that, for us, DH making partner immediately felt like he was "raking in tons of money." However, my DH's former firm was one that paid partners randomly and on no schedule, so it definitely can vary by firm.

To the OP, my DH was up for partner a couple of times before making it and it was a very political process. He did eventually have to take his clients and go to another firm to make partner, but because he was generating a lot of business, he was able to go to a more profitable firm with a couple of other partners who were also leaving and leverage that into a partnership offer. The partnership process is fickle and we always kept a few back up plans ready in case it didn't work out. The best insurance policy your husband can have is his own book of business, but even then it requires things to break his way. I would add my voice to the chorus of people who say to get your expenses under control now so a partnership isn't necessary. I never wanted my DH to feel trapped because the process is nerve-wracking enough even when you are a strong candidate. Even now, we spend like he is going to take a government job tomorrow, because he might decide to do that. The upside of this is that if he doesn't we will be in a position to retire comfortably in our mid-50's. All that being said, don't pay too much attention to the people who don't work in big law who hate on the big law lifestyle. It was hard (for the entire family) when DH was up, but he likes the work (not all lawyers are miserable, its just the one's who are usually posting are the ones who didn't like it and left the profession) and now that he is a partner, he has a lot of control over his schedule and we have a lot of options going forward. It is like other professions (getting tenure, getting a good residency, etc.) - a bit of hard work up front sets you up for the long term really nicely.

[Anonymous]

PP here: I posted the list of law firms. Grabbed a few of the top. I am sure I missed some, or missed the nuance.