Your business partnership is likely one of the most critical relationships in your life. Just like all relationships, business partnerships can be put under a lot of strain. Disputes can arise in any partnership, but business law attorneys California can help you manage a troubled business partnership.
When you first joined your partnership, you may have created a business agreement document. A business agreement details essential aspects of your partnership and how it works. It will clearly outline each party’s roles and responsibilities.
Your agreement should clearly show how much control each person has, their contributions, how to handle capital contributions, decision-making practices, and more. These agreements also outline worst-case scenarios, such as how buyouts can happen and how a partner can withdraw.
If your agreement is unclear, it can lead to arguments later down the line. Many disputes between business partners center around issues that could have been settled in the contract. Your business agreements should all be in writing so that you can refer to them and even use them in court.
Before seeking legal help, it’s worth the effort to have a thorough discussion about your disagreement. Instead of arguing about the issue as it comes up, you can set aside a specific time for it and sit down to have a conversation.
Addressing the problem head-on will prevent it from becoming an elephant in the room. Keeping the meeting casual can help you tackle the issue and maintain a positive working relationship.
Over time, unacknowledged problems can breed resentment and serious issues. During the conversation, shift the focus to the problem itself, not who is at fault. Staying on topic and working to resolve the issue will produce better results.
If you aren’t able to make significant headway on your own, consider hiring a mediator.
Mediation is an alternative dispute resolution that can be surprisingly effective. In this situation, a third party will step in to listen to your discussion and help guide it. A Los Angeles attorney can serve this purpose and provide legal expertise as well.
If your partnership is rife with arguments centering around a few specific issues, negotiation can help.
Each side will be asked to present their opinion and describe the problem in their own terms. The mediator will serve as a buffer and help each partner speak honestly without getting derailed by emotions and past issues.
Partnership disputes are common, and an experienced attorney can help walk you through your argument. Your mediator will help you look at the situation differently and consider new solutions. Crucially, a mediator will suggest potential solutions to your problems or new strategies to try.
Business law attorneys can step in and assist with negotiation by providing a neutral party to help you work out your goals and implement them. When you go into negotiation sessions, remember that compromise is essential if you hope to resolve your differences and keep the business together as it currently exists.
Professional mediation is often very effective at helping business partners resolve their issues. If your business problems don’t have a natural conclusion, then your mediator may help you figure out if you are better off going your separate ways instead of remaining partners.
If your problem can’t be solved through negotiation or mediation, the dissolution of the partnership may be the answer that fits your needs.
If you’re unable to come to a satisfying compromise, it may be time for one partner to leave the business. The business has a better chance of thriving if there’s a clear vision and direction for its growth instead of competing ideas. You’ll need to come to an agreement about what will happen to a company and then put that plan into action.
In some cases, your partnership agreement will outline procedures for separating and buying a partner out. If not, you could benefit from an attorney stepping in to help with the process.
A reliable attorney will help you hash out the details of who stays with the company and who leaves. Factors such as passion for the business, liquid capital, and other considerations come into play here.
Ending a business relationship can be complex, but a legal professional can help you divide assets and solve other problems as they arise.
If there’s evidence of misconduct by one or more partners, it may make sense to take your dispute to court. Misappropriation of assets, fraud, and not fulfilling essential responsibilities are examples of situations where a court case may be necessary to settle your issues.
Skilled business law attorneys in California can help you file an action against your partner, argue on your behalf in court, and potentially even win financial damages to address the misconduct. Your attorney can help you make sure you have a valid case and provide reliable advice before officially filing an action.
Litigation is generally regarded as the last resort, because finding a solution out of court is often cheaper and more convenient. However, litigation may be the best solution if your partner has turned out to be untrustworthy and unreliable.
The sooner you get legal help, the better you can stop your partner’s actions and protect your business. You can maintain the business you worked so hard to build up by seeking help from a legal professional.
Hire Trusted Business Law Attorneys in California
LibertyBell Law Group P.C is here for businesses of any size. We can provide essential counsel during difficult moments in your business partnership. Our attorneys are here for you, whether you want to settle a dispute, dissolve your company, or file a lawsuit.
We provide free consultations with our legal experts so you can see if we’ll be a good fit for your needs. Call today to schedule a consultation and get top-notch counsel from our legal team!