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Why Do Law Firms Need Financial Advisors?


In the past few years, lawyers have seen themselves immersed in the financial planning world. The changing facts that earlier retirements, fewer estimates of capital market risk, higher life expectancy, and growing health and retirement costs will almost certainly mean that even the busiest lawyers are eventually required to participate in an individual plan for financial success. This is why working with a skilled financial advisor in Waltham helps lawyers serve their clients better. Naturally, lawyers would favor working with advisors in the financial field who are proficient in anticipating and solving the most complex issues their clients may face. Consider some examples:


An Executive Is Negotiating an Employment Contract

The attorney could have a wealth of experience in the negotiation of employment agreements however, they may not be able to negotiate the intricate aspects of compensation these agreements might contain. These issues could involve equity or similar instruments, or perhaps deferred payments. Although some lawyers might have the necessary knowledge of employment law and tax to examine and negotiate these rules a multi-dimensional approach to helping clients is essential. Beyond tax implications, an executive who is receiving equity-based compensation should examine and adjust for the related portfolio, investment, and retirement consequences of having a concentrated portfolio as well as an executive who receives deferred compensation needs to consider the retirement and cash flow implications of these deferrals, too. Working with an advisor to financial matters and an attorney in this scenario will be able to provide more comprehensive and efficient guidance.


A Client Going Through Divorce

An experienced lawyer is sure to get an outcome that is successful in the case of a divorced client who has a spouse with a high net worth. However, "success" is relative. The ability to obtain a satisfactory judgment or settlement is a great beginning, but achieving real success also means being better positioned to be successful in the near future. Financial advisors can help the lawyer understand which assets and liabilities should be held by each spouse and, most importantly will provide a complete financial plan to ensure the longevity in any settlement, or judgment.


Representing An Athlete of Professional Status

Professional athletes are well assisted by an attorney who coordinates activities with a financial adviser to assure that the client reaps and enjoys the benefits of professional sporting. A knowledgeable financial advisor can guide the athlete through the many financial issues, design saving, and budgeting plans, provide advice on major purchases, design portfolios of investment to attain goals, and develop estate plans that may comprise individuals as well as charitable organizations.


Representing A Customer Going Through the Process of Obtaining Liquidity

A sale, merger, or any other type of liquidity event could be the most significant financial event in a client's life. This, in turn, gives a lawyer an excellent chance to enhance the value. Lawyers will be able to make the most of this chance not just through negotiating the most efficient legal structure but in conjunction with a financial advisor in Waltham who will coordinate the required planning to minimize tax burdens, revamp the estate plan of the client as well as reduce new risks, and revise the strategy for investing.

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