Partnership Disputes and Dissolution

Partnership disputes are never easy, especially when they rise to the level of legal intervention. You may even find yourself in the difficult position of suing your business partner for damages if they’ve breached any of their fiduciary duties . Business is business, but it can still feel personal, especially if you and your partner have been in business for a while.

Partnership disputes or buyouts can be resolved through mediation, third-party arbitration, or court actions. Each approach has pros and cons to consider. Sometimes, partners can sit down and meet in the middle for negotiations. Other times, partners are unable to resolve their dispute on their own – that’s when a judge or jury decides for them.

Situations that require legal intervention can develop swiftly or escalate over time. If you suspect that a business partner is engaging in misconduct or if their actions are causing issues for the partnership, you should immediately begin documenting your concerns. You should also hire an attorney to help you understand your legal options and determine your best course of action.

Dissolving a partnership can be a challenging process to go through, especially if the dissolution is unplanned. A partnership may be dissolved as a result of an agreement of all the partners, a partner’s misconduct, a judicial decision, or a dispute resolution.

In some cases, dissolution can be avoided if the partners come to a new agreement on how to proceed with the partnership. But more often than not, partnerships get broken up and wound down because of disputes between partners that cannot be resolved.

After a partnership is dissolved, its financial liabilities must be paid and the remaining assets distributed to the partners in accordance with whatever governing agreement is in place. Usually, that’s your partnership agreement and/or state law.

Fortunately, you don’t have to go through this process alone – and you shouldn’t. Our team will pair you with an experienced lawyer to help you get through partnership disputes with the delicacy and nuance you need while aggressively protecting your interests.