You’ve made the call. You’re leaving a law firm to start your own practice and build something of your own.
The clients who trust you want to come with you. Your team is ready. The lease is signed, or close to it.
Then someone asks: What happens to our files on Monday?
When you leave a law firm to start your own practice, you’re doing two hard things at once. You’re separating from a firm whose systems hold your clients’ history, and you’re building a new firm’s systems from nothing. Usually on a deadline that doesn’t move.
Here’s how one group did it before their new firm’s launch date, and what to plan for if you’re next.
First: the rules come before the data
Which clients can move with you, how they’re told, and how their files and trust funds transfer are professional responsibility questions. The answers come from your law society in Canada, or your state Bar Association in the US, plus your partnership agreement. Get advice on that early.
In the US, see ABA Formal Opinion 489 on notice when lawyers change firms. In BC, Law Society Rule 3-87 requires written notice of how files and trust funds will be handled. See the Law Society of BC disposal checklist.
We’re not lawyers or accountants. We handle the operational side: systems, data, workflows and training, built to fit whatever you and your advisors decide.
Case study: a group of lawyers leaves to launch their own firm
The situation. A group of partners and associates were leaving their law firm to start a new one, along with their support staff. They needed an urgent data migration and implementation, and they were working to a tight deadline.
The challenge. The old firm ran PCLaw, and its database held every lawyer’s clients, not just the departing ones. The new firm needed only its own data, and it needed it right: trust balances that tied out, work in progress that could still be billed, and enough client history to run conflict checks. All with no downtime for the people billing time.
What we did.
- Mapped exactly what would move. Working with the new firm and the vendor (who extracted the data), we set the rules: the departing lawyers’ open and closed contacts, open matters for the six lawyers, trust balances for open matters mapped into the new firm’s trust accounts, and unbilled work in progress for the departing timekeepers. Accounts receivable stayed behind. Matter numbering kept its familiar format, so nobody had to relearn file numbers.
- Flagged the conflicts gap. Bringing over only the departing lawyers’ contacts meant the new firm’s conflict searches wouldn’t see the old firm’s other clients. We called that out in the data plan so the firm could account for it.
- Planned a blackout so no time was lost. We set a data cutoff and gave everyone simple spreadsheet templates to record time and expenses during the switch, ready to import on go-live morning. Trust transactions paused during the blackout. Dates can shift in any migration, which is exactly why the blackout plan mattered.
- Set up the new firm properly. We set up a security permissions matrix and invoice, pre-bill and balance-reminder templates. We also set up cheque printing, lawyers’ digital signatures, Microsoft Office integration and online payments, then updated the templates once the new firm’s GST number and logo were ready.
- Checked the numbers with their accountant. After import, the firm’s accountant reviewed the trust accounts. The standard import didn’t cover everything the firm needed, so we coordinated the follow-up adjustments with the vendor’s team until the balances matched the firm’s criteria.
- Trained the team, and the bookkeeper. We ran two recorded 90-minute group sessions and separate reporting training for the firm’s bookkeeper and her team.
- Wrote it all down. We delivered a detailed process manual written for this firm. It covers contacts and files, payables, expenses, time, operating and trust transactions, refunds, transfers, billing, reports and an FAQ, with links to the training recordings.
The result. The new firm went live on its new system before its launch date, with its own clients’ files, trust balances and unbilled time in place, and a team trained to run it.
💡 Planning your exit?
Bring us in before you give notice, or as soon after as you can. The earlier we map your data, the smoother your first week will be. Law Firm Mergers, Acquisitions & Succession · Book a discovery call
Going solo? Same questions, smaller scale
Not every departure is a whole team. We also helped a lawyer leaving a large firm to open his own practice. At the big firm, the tools were chosen for him. Now he needed to choose everything himself: practice management and accounting, a domain, Microsoft 365 and email, with the basics in place before he opened his doors. We ran a software selection process, he made his choice, and we set up his domain, Microsoft 365 and email. When you’re the whole firm, the right setup on day one saves you from a painful switch once you’re too busy to make it.
Leaving a law firm to start your own practice: 7 operational questions to answer first
1. What data can you take, and what will you leave behind? Decide with your advisors which contacts, matters, documents and history move. Then map it field by field, because “our clients” is not a database query.
2. Can you still run a proper conflict check? If you bring only some contacts, your conflict search only sees some contacts. Know what’s missing and how you’ll cover it.
3. How will trust move? Trust balances for transferring matters have to land in the new firm’s trust accounts and tie out to the penny. Have your accountant review them after import, and follow your law society’s or state Bar Association’s rules.
4. What happens to your unbilled time? Work in progress is money. Plan how it transfers and how you’ll bill it.
5. How will your team keep working during the switch? A blackout plan with a clear cutoff, simple templates for recording time and expenses, and a pause on trust activity keeps billing intact.
6. What does a brand-new firm need on day one? Invoice and cheque templates, permissions, signatures, email, payments, your new tax numbers and logo. Little things, all at once.
7. Who knows how the new system works? Role-based training, recorded so new hires can catch up, and a written process manual so your firm doesn’t depend on one person.
Choosing software for your new firm
A new firm is the best time to choose well, because there’s no legacy to drag along. Depending on how you’ll practise, that might be Actionstep, Clio, LEAP or another platform. Choose for the firm you’re building, not the one you’re leaving. Actionstep implementation · Clio migration · Law Firm Technology Audit
After go-live, we give every client at least two weeks of hands-on support, and many keep us on for ongoing support as the new firm grows.
We work with law firms in every province and territory across Canada and throughout the United States.
FAQ
How long does it take to set up systems for a new firm when lawyers leave?
It depends on your data, your deadline and how many people are moving. Every departure is different, so we build the plan around your launch date once we understand what’s moving.
Can we take our client files from the old firm’s system?
That’s a professional responsibility and contractual question for you, your advisors, and your law society or state Bar Association. Once it’s settled, we map exactly what moves and work with the software vendors on the migration.
What happens to trust funds when lawyers leave a firm?
Your advisors and accountant decide how trust transfers, under your regulator’s rules. Operationally, we map balances into the new firm’s trust accounts and have your accountant review them after import.
Do we lose our time entries during the switch?
Not if you plan a blackout period. Your team records time and expenses in simple templates during the cutover, and we import them on go-live day.
Do you do financial due diligence or accounting?
No. We’re not accountants. We cover the operational side and work alongside your accountant and legal advisors.
Starting your own firm? Book a discovery call · Explore Law Firm Mergers, Acquisitions & Succession
