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Ending a partnership may help unhappy business owners

Nov 19, 2020 | Business Disputes

Running a business with a partner can help distribute some of the responsibility and, often, stress that comes along with operating a Florida company. Of course, as time goes by, it may seem like a partner is causing more stress than alleviating it. For some, business partnerships stop working after a few years, and as a result, ending a partnership may be a logical step.

Much like a marital relationship, going through a business partnership “divorce” can involve certain procedures to follow and can lead to a division of assets. The specific procedures for ending this type of partnership can depend on state law and on partnership agreements. As a result, it is important that the partner who wishes to end the business relationship understands what the terms of the partnership agreement say about dissolving the relationship and how state regulation could play a part.

Depending on the issues involved, some individuals may want to give their partner an opportunity to understand why the partnership is no longer working and possibly allow the partner to offer explanations as to why the problems continually occur. In some cases, this discussion could lead to resolutions that allow the partnership to continue. If not, it can lead into the topic of dissolving the partnership.

For Florida business owners, ending a partnership can have serious implications for the company as a whole. As a result, it is important that parties considering this route understand how to best protect their companies during such a transition. Going over possible options and protective measures to use during this time with an experienced business law attorney may be worthwhile for concerned individuals.