In the business world, partners come together all the time to start new
companies and take advantage of growing sectors. This is common in the
industry, but not all parties can agree on everything, making the possibilities
of disputes and breakups more common.
There are a number of disagreements that may occur causing both parties
to argue over the correct options. Unfortunately, when disagreements do
arise, some are severe enough to cause the partnership to dissolve and
the business may experience a breakup between the parties.
Decision Making Abilities
Every business will have to make various decisions over its lifetime. Without
a proper contract in place, parties may contend each other’s decisions,
making disputes more likely. When one party doesn’t have the same
decision making abilities, they may feel envious or jealous, often leading
One of the most disputed items regarding business formation is capital
contribution. This is the amount put in by each individual to help start
the business, but can also dictate the percentage of the company owned.
Disputes may arise if the agreed upon capital contribution is not met.
What Happens When Partners Breakup and Split
Regardless of what most people think their relationship is like with their
partner, things can always come up that gets in the way. This is actually
more common than most people think and having a strong legal structure
is important when it does occur.
When partners split, there are a number of factors that must be determined
such as ownership and business valuation. Our
Houston business litigation attorney has assisted in numerous types of disputes including breach of fiduciary
duty, shareholder oppression, intellectual property disputes, tax liability, and more.
At Patterson, P.C., we understand how difficult it can be for partners
to split up after starting a business together. The legal matters can
become heated and both parties need to know what’s at stake. If
you need help getting through a partnership breakup in the most positive
manner possible, we’re here for you.
Call today to speak with our team.