5.6
Ethical Issues in Space-Sharing Arrangements

Sharing Space with Lawyers

The Code of Conduct contains several provisions relevant to space-sharing arrangements, including but not limited to the following:

  • If you share space with other lawyers, you are treated as a firm for ethical purposes unless you clearly and unequivocally indicate to your clients that you are independent practitioners. Even if you take steps to separate your practices, you are still deemed to be a firm for the purpose of conflicts of interest and confidentiality (Rule 1.1 of the Code, Definition of "law firm”).
  • The rules on multiple representations (Rules 3.4-4 and 3.4-5 of the Code) apply when members of a space-sharing association represent clients in potential or actual conflicts of interest.
  • Because you are a firm for ethical purposes, you can share fees (Rule 3.6-5 of the Code).

The conflict of interest rules and case law may combine to produce surprising results when a new lawyer comes into a space-sharing arrangement. In a situation where a new association member was previously opposing counsel on a case being handled by an existing association member, the existing member may be prevented from continuing to act. A system for screening for these conflicts is essential.

Sharing Space with Non-Lawyers

From an ethical perspective, there are two main concerns when you share space with non-lawyers.

The first is protection of client confidentiality. You must be extra cautious to ensure that confidential information does not get disclosed.

The second is ensuring that you don't breach the law and rules regarding unauthorized practice (Code of Conduct, Fees and Disbursements):

  • You cannot pay referral fees except where the referral is of a client to another lawyer (Rule 3.6-6 of the Code).
  • You cannot divide your fees with non-lawyers (Rule 3.6-7 of the Code).
  • You can accept referral fees only with the informed consent of your client, provided that the referral fees are reasonable and do not increase the legal fees charged to the client (Rule 3.6-6 of the Code).

Last modified: Monday, 9 February 2026, 9:11 AM