Support Modification: Overview and Update
July 31, 2007
In the past few years, more requests for modification of a child support obligations, either upward or downward, have been denied than granted. With regard to the cases in which an upward modification was denied, the courts have been reluctant to find that the party seeking to modify the child support obligation has established that any claimed change in circumstances was unanticipated or that the children's needs were not being met.
Ruling Signals Change in French Tax Treatment of LLP Distributions
July 30, 2007
Earlier this year, the French authorities signaled that a welcome change may be afoot in the tax treatment of distributions from UK LLPs under French law. (Most U.S. firms operate in France through the UK, unless they are grandfathered and in practice in France since the early 1990s.) This article discusses the scope of the ruling and its ramifications for UK firms considering a LLP conversion or those already in or contemplating alliances with French firms.
Unfunded Retirement Plans: An Ongoing Problem
July 30, 2007
During the past year, we witnessed a marked increase in the number of law firms, both large and small, which are finding that their existing unfunded retirement plans are becoming significant, disruptive forces. The underlying problem created by these plans is that the plans result in current income being diverted to former partners, thereby reducing the compensation of the remaining active partners. Today, the combination of an expected spike in retirements related to the baby boom generation and, for many firms, greatly increased benefit exposure due to sharp increases in firm profitability that is factored into the value of retiree benefits, stand ready to test the financial viability of even the strongest firms.
Taxes and the Internet: Haven't We Heard This Before?
July 30, 2007
Famous 18th-century technology geek Benjamin Franklin once complained that 'nothing in this world is certain but death and taxes.' These days, perhaps it's certain that this quote will appear in any tax article, but if taxes were a problem for inventors in Franklin's era (and he was an accomplished inventor himself), it shouldn't be surprising that they continue to confound experts on the Internet and e-commerce today.
Insolvencies Created By Bad Actors
July 30, 2007
While the market is swimming with innovative and highly leveraged financial transactions, and many parties are enjoying sizeable gains, some of those involved in these enterprises ultimately will become insolvent. A fraction of these insolvencies will result from fraudulent investment schemes perpetrated by multiple parties acting in concert for their mutual benefit. Innocent victims, including creditors and investors, will bear the financial brunt of the insolvencies, and will be eager to recover from all parties that participated in the fraud.
Sizing Up the Am Law 100
June 29, 2007
They may lament that they are the poor cousins of hedge fund managers and private equity stakeholders, but law firm partners are hardly suffering.
From Moral Partners to a Moral Firm
June 29, 2007
In March, <i>The American Lawyer</i> ran a cover story about a prestigious national law firm that found itself mired in legal and ethical problems even as it enjoyed unparalleled growth and economic success. The article asks: Are the firm's great strengths — enterprise, speed, and daring — also its great flaw?
Milking a Cash Cow
June 29, 2007
With all of the reporting capabilities of sophisticated time and billing systems, it is easy to lose sight of the most basic rule of law firm economics: Cash in must exceed cash out. To that end, one of the most valuable assets any business can have is a cash cow. Yet, we find that many law firms never benefit from practices that could be cash cows because they just don't seem to understand the concept. I know, it sounds pretty simple ' bleed as much revenue as you can out of practice areas in which your firm has a dominant position. But, somehow, we keep screwing it up.
