Unfortunately, business isn’t always smooth sailing. Sometimes, business partners face disputes between one another that are so volatile that the only option is to split up. This is known colloquially as “business divorce.” In a business divorce, partners must determine how to separate assets, how the business will be run, whether they will sell the business altogether, and more. If you find yourself in this situation, please contact a skilled Atlanta business divorce lawyer who can effectively represent your interests.
Common Business Disputes
Business owners can find themselves facing a range of disputes with their partners, many of which can lead to a “business divorce.” Some examples of these disputes can include:
Financial Disagreements
Disputes over financial management, allocation of profits, or handling of losses.
Breach of Fiduciary Duty
Allegations that one partner has acted in their own interest rather than in the interest of the business.
Operational Disputes
Differing opinions on how the business should be run.
Disputes Over Roles and Responsibilities
Conflicts arising from unclear or overlapping roles within the business.
Strategic Direction Disputes
Differing visions for the future of the business, including expansion plans or market strategies.
Compensation and Benefits Disagreements
Conflicts over salaries, bonuses, and other forms of compensation.
Partner Exit Strategy
Disputes on how a partner should exit the business and what compensation they should receive.
Ownership and Equity Issues
Conflicts over the distribution and control of business ownership and equity.
Strategies for Structuring a Business Divorce
A skilled Atlanta business lawyer can help negotiate potential solutions in your “business divorce.” Some examples include:
Buy-Sell Agreement
Establishing a buy-sell agreement where one partner buys out the other’s interest in the business.
Voluntary Dissolution
Agreeing to dissolve the business and distribute the remaining assets according to ownership interests.
Partition
Dividing the business assets into separate entities, allowing each partner to continue independently.
Third-Party Sale
Selling the business to a third party and dividing the proceeds between the partners.
Corporate Restructuring
Restructuring the business to accommodate the interests and roles of the remaining partners.
Equity Adjustment
Adjusting the equity shares to reflect new contributions or roles within the business.
Exit Strategy Planning
Developing a clear exit strategy that outlines the steps and financial arrangements for a partner’s departure.
Continued Collaboration Agreement
Formulating an agreement that allows partners to continue working together under new terms.
Legal Action
In cases where amicable resolution is impossible, taking legal action to enforce agreements or resolve disputes.
AB Law has extensive experience working alongside business partners in dispute and helping them reach resolution. Please don’t hesitate to contact AB Law to explore your options and navigate the process.
Contact a Skilled Business Lawyer Today
Don’t face a business divorce without skilled legal representation in your corner. Contact AB Law today so we can assess the circumstances of your situation, and, from there, represent your best interests, every step of the way.
