Partnerships are usually based on partners being able to use their independent strengths to help build and grow a company together. While independent thinking and different abilities are beneficial, they can sometimes lead to disputes.
Disputes between partners can often start out as minor issues, but they can snowball into major problems if they aren’t handled appropriately. Addressing these disputes effectively is key to maintaining a healthy and productive partnership.
Common reasons for partnership disputes
One of the most common reasons for partnership disputes is how responsibilities are being divided. If one partner seems to be handling more of the business decisions than the other, it can build resentment.
Financial disagreements are also possible. This often has to do with investment decisions or profit distribution.
Views for the company’s future can also lead to significant conflicts. This is particularly true if one partner starts to have a different vision from the original one that was present when the company began.
Steps to resolve partnership disputes
Once the underlying cause of the partnership dispute is determined, it can be addressed. Discussing the issue away from the company is a good idea because these disputes are usually best kept away from employees and clients.
If the partners can’t come to a mutual agreement about how to resolve the matter, they may need to call in a third party to help. This may be a mediator, arbitrator or court. Determining how to proceed should be covered in the partnership agreement, but it may also be handled according to the severity of the dispute.
Because partnership disputes can be complex undertakings, it may be best for partners to seek legal assistance. Learning the options for a resolution and moving forward in a way that’s best for the company is beneficial.
