Has a lot of time, money, and effort gone into starting and building your business? If so, then you’re probably worried about how a legal dispute is going to affect your income, your business operations, and your reputation.
Truth be told, the impact on your business depends in large part on the type of dispute that you’re facing and how you choose to handle it. For example, a partnership dispute may be nothing more than a miscommunication that is easily resolvable, or it may be a deeply ingrained disagreement that leads to the dissolution of your business.
How can you handle your partnership dispute?
There are a lot of ways that you can work to avoid and address partnership disputes. Here are just some of the options that may be at your disposal and that you should give due consideration to:
- Create a strong partnership agreement: On the front-end, you can avoid a lot of partnership agreements by crafting a partnership agreement that is comprehensive and clear. This agreement should define each partner’s role within the business, how profits will be divided, and provide guidance on situations where things go wrong, such as when a partner wants to leave the business.
- Utilize alternative dispute resolution: If you can’t communicate with your partner or partners, then mediation or another form of alternative dispute resolution might be the best way to resolve the issue. This neutral process will help ensure that all sides of the disagreement are heard so that the parties can work towards mutually beneficial solutions.
- Develop a buyout agreement: When you’re unable to hash out your disagreements and you or your partner wants out of the business, then a buyout agreement might be proper. This is especially true if one of you wants to keep running the business. But in these situations, you need to make sure that you’re getting a fair deal. If your partnership agreement didn’t specify what a buyout would look like, then make sure that you’re getting an accurate valuation of the business before moving forward.
- Consider bankruptcy: Financial concerns can cause a lot of strain in a partnership. But your financial difficulties may be easily resolved through bankruptcy. This process can help you restructure your business, reduce your debt payments, and even eliminate some debt. This can reinvigorate your business and your relationship with your partner.
- Dissolution: If neither you nor your partner wants to continue with the business, then it might be time to wind it down and close up shop. This process has to be undertaken carefully so that you can ensure that you pay off creditors as fully as possible while retaining an interest in the proceeds from sold assets.
- Litigation: In situations where a partner has acted illegally, such as by embezzling funds, then you might be best served through civil litigation. If successful here, then you might be able to recover the damages that have been caused to you.
Secure the personalized attention that you and your business need
Every business dispute is unique. That’s why it’s important that you obtain a custom-tailored legal approach that suits your needs. This means that if you need legal assistance, then you’ll want an attorney on your side who can give you and your case the time and attention that is needed and deserved.
So, as you consider your representation options, we encourage you to look closely at the kind of advocacy you’re going to get from each law firm you analyze. Your choice of attorney, after all, could make all the difference in your case.