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What to consider in a partnership dispute

On Behalf of | Feb 9, 2023 | Business Litigation |

Don’t be surprised if your relationship with your business partner breaks down. Some reports suggest that almost 70% do so eventually.

Yet, before you look for an exit strategy, try to take a step back and consider a few things:

Are your differences insurmountable?

Sometimes one issue is enough to end a relationship despite everything being wonderful up to that point. For example, if you discover your business partner has been stealing from the business or sleeping with your spouse, things are probably irreparable.

Less serious issues may be solvable if you both get a bit of space and perspective or bring in a neutral third party to help.

Do the advantages of continuing together outweigh the disadvantages?

If your business is thriving, and you are just years away from being able to sell it and take a very comfortable retirement, you might consider putting up with more than if you are only starting out together.

What does the partnership agreement say?

You cannot change your agreement now, but, especially if you made it a long time ago, you should review it. You may find you inserted clauses that will determine how to deal with your current situation.

What are the wider repercussions of escalating your dispute?

If you were to go to court, many other people would get to know about it. Even if you win, you might suffer losses if customers and suppliers are more loyal to your partner than to you. Your competitors might also see internal strife as a sign of weakness that they could exploit to overtake you, perhaps targeting your staff or customers.

If you have problems with your business partnership, consider legal help to examine your options.