Reply to DH is a new big law partner and I have no clue how to budget

Forum Index » Money and Finances

Reply to "DH is a new big law partner and I have no clue how to budget "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My take on this is that OP and others are humble bragging about having spouses making lots of money in big law.

-- Biglaw partner whose spouse has never found any of this to be "so complicated"[/quote]

I think that's a bit cynical.  My firm has a series of onboarding events/trainings for new partners (and even for associates or counsel who are putting themselves up for partner) to make sure they understand and prepare for the new tax situation that comes with making partner.  Since OP's DH is taking a strangely laissez faire attitude toward the question and she knows budgeting is not her strong point, I think it's perfectly reasonable to come to the one place on the internet where all BigLaw SAHM's can be found at any given moment for advice.

-- Biglaw senior associate who has no plans on making partner but has witnessed the transition go poorly for certain colleagues[/quote]

What firm provides partner "tax training" for associates who aren't partners yet?  That's odd.

In any event, it's just not all that complicated.  Just be careful for the first year and after that go on prior experience.  And if after being careful you still find that you have to tap a line of credit because your numbers were off, no biggie.    [/quote]

You definitely think you're bragging that it's "not complicated" but really you're just demonstrating that, even as a law firm partner, you don't make that much money (or aren't at a top/global firm).  Anyone making seven figures, which gets distributed a year after it's earned, in random huge chunks throughout the year, including what one must LATER pay in taxes to several countries and states at equally random dates, would find cash flow complicated.   [/quote]

OP's husband is a first year partner.  I'd be flabbergasted if he was making seven figures that quickly, but if he is, good for him.  But the point remains the same:  the first year can serve as a good barometer for planning purposes.

And any decent "global firm" will typically pay taxes to "foreign countries" on your behalf and include it all in your K-1 so your accountant can do the work.  My firm had offices in a half-dozen cities in the US and twice than many abroad and the only estimated taxes I paid were DC and federal taxes.  And, yes, I was an equity partner.

Also, good firms don't pay their equity partners less than senior associates because of buy-ins etc.  That's just wishful thinking for associates who don't make partner.  Good firms give you the option to pay the buy-in in installments or set you up with a bank for a capital loan.

See?  I actually do know what I'm talking about.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics