Partnership disputes aren’t all that uncommon. People often start out as partners with the same goals in mind, but as the business grows and changes, their preferences may change. One person may want to take the business in one direction while the other thinks they should stay the course.
Whatever the reason is for your partnership dispute, it’s not a bad idea to consider getting legal support to get through it. The sooner you can settle your dispute, the better it will be for your company.
What are some common reasons for partnership disputes?
There are dozens of reasons that partners might start arguing or have a conflict, but five common reasons include:
- Thinking one partner is not contributing as much money or time to the business
- Having differences in opinion about how profits or losses will be handled
- Disagreements over which business opportunities to take
- Frustrations over decisions being made without dual input
- Professional misconduct, such as committing fraud
If you’re dealing with one of these issues (or any other), it’s a good idea to learn about the legal options you have. If your partner has breached the partnership agreement, it may be possible to expel them from the business. Alternatively, you may be able to go through mediation, or one of you may buy out the other partner’s share to run the business independently.
A well-drafted partnership agreement makes a difference
When you have a good partnership agreement in place, you’re much less likely to have disputes. Additionally, you can address how to handle disputes that do occur in the agreement, so you’re not left wondering what your legal options are.
Before you start a partnership, it’s valuable to get insight from business attorneys who can help you create your partnership agreement. If you didn’t do this, now may be a good time to talk with one about your situation and the options that may be open to you.
Many disputes can be settled. If you and your partner are at an impasse, now is the time to address your concerns to help your business move forward.