The Fact: Thirty-nine per cent of advisors who indicated that they were in some form of partnership (including partnerships with junior advisors) have a formal, written partnership agreement in place.

The Implications: Partnerships are being embraced by an increasing number of advisors as a way to run a more efficient practice. As that trend continues, however, financial advisory partnerships will have to take the same steps as partnerships in other industries in order to protect both the partners and the practice. Even partnerships that are not formal (from a legal perspective) will demand some form of written agreement.

The Idea: If you are considering working with a partner, take the time at the outset to clearly understand your goals for the future and your expectations for the practice today. An outside mediator can be very helpful, however there are some basic questions you can ask yourselves, including the following. What are your personal objectives in one, three and five years with respect to income, time-off, work week, education and role within the practice? How do you see the practice in three years with respect to number of clients, scope of financial planning, products and services, networking with other professionals and type of clients? What areas do you want to come together in the practice, such as existing client relationships, new client relationships, technology, staffing, new business development or relationships with centres of influence? What do you consider the most important skills that you bring to the practice? What are your expectations with respect to client service? When do you want to retire and how do you see getting value out of the practice?