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Is business partnership divorce on the table?

Jun 1, 2021 | Business Disputes

Florida business owners who choose to work with another company or person as a business partner typically have numerous reasons for doing so. Often, there is some benefit to working as business partners, such as one party having means, skills or resources that the other party does not. However, even if a partnership works for a time, it is not unusual for companies and business partners to find themselves at odds and begin considering partnership divorce.

Will the business come to an end?

Divorce can have significant effects on businesses, especially if one partner has more power than the other. In some cases, the situation could result in one business partner having the ability to buy-out the other partner and keep operations moving forward with whatever changes are necessary. In other cases, a business may need to dissolve entirely, and former business partners may need to start anew.

Is business divorce a failure?

Unfortunately, even if this type of arrangement is for the best, many businesses owners can see ending a partnership as a form of failure. However, it is important that individuals and businesses alike remember that taking the step to stop continual hardships between partners could prevent a slow decline in the business until it is unsalvageable. Instead, they may want to head off any future disputes and find ways to keep the business afloat.

Of course, a partnership divorce could involve more than just the partners themselves, depending on the size of the company. There may be shareholders to consider as well as employees, vendors or other outside parties. Because this type of ordeal can be tricky to navigate, having the assistances of experienced Florida business law attorneys is wise.