How Attorney Referral Relationships Work

This article is general information for lawyers. It is not legal or ethics advice. Professional conduct rules differ by jurisdiction, so check your own state's rules and ethics opinions before acting.

Referral relationships let lawyers send clients to the right attorney while building trust with colleagues. They are governed closely by the rules of professional conduct.

Paying for recommendations

Model Rule 7.2(b) generally prohibits giving anything of value for recommending a lawyer's services. It has limited exceptions, including reasonable advertising costs, qualified lawyer referral services, and reciprocal referral agreements.

Reciprocal referral agreements

Under Model Rule 7.2(b)(4), lawyers may agree to refer clients to each other if the agreement is not exclusive and the client is told that the agreement exists and what it involves. The lawyer must still refer based on what is best for the client.

Dividing fees between lawyers

Model Rule 1.5(e) allows lawyers who are not in the same firm to divide a fee only if:

1. the division is in proportion to the services each lawyer performs, or each lawyer assumes joint responsibility for the representation;
2. the client agrees to the arrangement, including the share each lawyer will receive, and the agreement is confirmed in writing; and
3. the total fee is reasonable.

States vary. Some permit referral fees where the referring lawyer accepts joint responsibility, while others are stricter or require specific written disclosures. Always check the rule in each jurisdiction involved.

No fee sharing with nonlawyers

Model Rule 5.4(a) generally prohibits sharing legal fees with nonlawyers, apart from narrow exceptions and jurisdictions that permit alternative business structures. Marketing or administrative help should be paid for separately, not as a share of legal fees.

Good practice

• Refer only to lawyers you believe are competent for the matter.
• Tell the client about any referral relationship or fee division.
• Keep written records of referrals and client consents.