A partnership can be a great business structure to ensure that you retain control over operations while maximizing your profit potential. But with the benefits of this structure type come risks. And when partnership disputes arise over business trajectory or how business funds are used, the foundation of the endeavor can be rocked, threatening to send the business under.
How can you avoid a partnership dispute?
In an ideal world, you’d avoid a partnership dispute by being thoughtful on the front end of your business’s creation. This includes discussing worst-case scenarios with your partners, developing a decision matrix and crafting a partnership agreement that clearly specifies each partner’s role and responsibilities. The more foresight you can exercise in the creation of your partnership, the better.
What if you’re already embroiled in a partnership dispute?
If you’re already in the middle of a partnership dispute, then you may need to consider legal action to protect your interests. This may include entering mediation to try to find favorable resolution to the dispute, or you might have to consider buying out a partner or even dissolving the business. And if the partner in question has violated their fiduciary duty or otherwise misappropriated funds from the business, then you might want to consider additional legal action to recoup what’s been wrongly taken from you and your business.
Get a firm grip on your partnership dispute
There’s a lot that can go wrong when owning and managing a business. You can’t afford to let any of these issues slide. If you do, then you could set yourself up for a bad outcome that devastates the viability of your business, your reputation and your financial well-being. So, if you’re facing business-related legal challenges, then now is the time to explore your legal options and to act on them expeditiously.