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Partnership Disputes & Breakups: What To Do When This Happens

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 to disputes.

Capital Contribution

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.

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