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Partnership disputes: How to properly handle them

On Behalf of | Jan 5, 2021 | Partnership Disputes |

Running a business in Florida can be stressful on its own, but add an opposing voice, and it can make day-to-day operations almost impossible. However, it doesn’t have to be that way. If the right actions are taken by both partners, the chances and the severity of disputes dramatically decrease. The following includes further information on how to handle any present or potential partnership dispute.

Operating agreements

One of the most common reasons that partners get into a dispute is due to how the business is being handled. Business partner disputes may be avoided by creating what is called an operating agreement. The documents formed with the assistance of an attorney can help both partners understand each other’s legal obligations. Within that agreement, a set of dispute resolution procedures would also be included as a means to quickly settle any issues in the future.

Communicate workload agreements

When a company begins to grow, it can become difficult to quickly divide responsibilities between each partner. This can lead to resentment with one partner, believing that they are doing all the work or not enough. In many cases, this leads to the end of a partnership and maybe even the company itself. Openly communicating about these types of issues early on is the key to avoiding a dispute in the future.

Get everything on paper

No matter how big or small the agreement, it is incredibly important to document everything. The fact is that when disagreements do occur, it is likely that one or both partners will forget or remember the initial agreement wrongly. Taking the time to document your agreements can potentially save your partnership.

If you’re looking to start or have started a business with a partner, it is important to consult with a business attorney as soon as possible. An attorney may guide both of you through the process of creating a legal and sensible agreement.