The colloquial saying that a business partnership is a like a marriage rings so true when a dispute arises between partners. Partnership disputes will and do happen, and they can lead to lost profits or the end of the partnership, which may affect your entire lifestyle. However, with careful planning, great foresight many partnerships can be avoided. The best way to handle disputes is to have a written agreement during the initial formation of the business, which clearly spells out all partners’ rights and obligations, as well as the method by which disputes must be resolved. A good partnership agreement leads to proper communication between partners, and helps to avoid potential disputes. Partners must have a clear understanding of how to treat business assets, opportunities and liabilities. In addition to specifying roles, partnership documents lay out a plan for what will happen if there are changes among the individual partners or if the business shuts down. People can leave, move or even die; therefore, buyout provisions are critical.
Business Partnership Disputes
Business partners have fiduciary responsibilities to each other and to the business. There are many causes of partnership disputes, but some of the most common reasons are:
Misappropriation of assets belonging to the partnership
General disputes about how to utilize partnership resources
Misappropriating “business opportunities” that belong to the partnership
Partnership Dispute Resolution
Our Tampa attorneys are experienced at resolving partnership disputes with or without court intervention. When emotions run high, it may be difficult to think rationally and communicate effectively. It is our job to communicate your interests to the other side. We realize that bad blood between partners can destroy the business. Settling a dispute requires more than just evening past scores─it is about placing you in position for success down the road.
When business partners cannot settle their differences, the Lenoir Law Firm can help dissolve the partnership through the following mechanisms:
Voluntary dissolution. We can facilitate dissolution of the partnership if that is what all of the partners desire by drafting a comprehensive dissolution of partnership agreement, which will address on-going business projects, future business projects, and more importantly how to divide business assets and assign responsibility of debt.
Involuntary dissolution. If only one partner wants to end the partnership, he or she can file a lawsuit and the court will order dissolution of the partnership and allocation of the assets and liabilities.
If you are forming a partnership, let the attorneys at the Lenoir Law Firm help you draft a solid partnership agreement. If you are anticipating a partnership dispute, then let us help you resolve the matter. Our law firm can explain your rights and duties associated with the partnership. Do not allow a partnership dispute to ruin your business and your investment into the business.