Partnerships are built on a relationship designed to work for the greater good of a shared company. This includes being able to share the responsibilities and goals of the business. In most partnerships, partners all have specific knowledge that enable them to be assets to their shared venture, but the individual differences between them can sometimes lead to disputes.
Disputes between partners can arise from disagreements regarding profit distribution or business operations. In some cases, they may involve breaches of contract. Once partners know the underlying cause of their concerns, they may try to work out the dispute, but that might not be possible without assistance.
Litigation may be necessary
Handling partnership disputes through litigation can be a complex and emotionally charged process. Knowing what to expect and how to navigate your circumstances can help you manage the situation more effectively and reach a resolution that safeguards your rights.
The primary goal of partnership dispute resolution, including when litigation is necessary, is usually to protect a company’s interests. This could mean that all the partners have to put their own interests aside and move forward without any emotional attachment to the situation.
Partnerships may not be able to be saved
There are many ways that partnerships disputes may be resolved. It’s sometimes possible for the partners to come back together after a court issues a ruling on the matter (provided that a mutually-agreeable solution can’t be worked out via attorney-led negotiation, mediation, etc.), but it may be necessary for the partners to part ways.
If it’s decided that the partners can’t work together after the matter is resolved, determining who’s going to leave the company is critical. This might be covered in the partnership agreement, but it will likely involve a buyout of the departing partner’s share of the company.
Legal representation is critical when there’s a partnership dispute that can’t be resolved amicably, partially because these situations can be complex. With so much at stake, moving forward unassisted is generally unwise.