Relationships between business partners can go sour; to the point where the co-owners of a business are unable to work together, and need to separate. Like a marital divorce, sometimes this is a mutual breakup, while in other instances, one owner may feel slighted by his former partner or partners.
Even where the parties to a business dissolution are on amicable terms, coming to a resolution can be challenging. Winding-up the affairs of a business and bringing all parties to agreement can take a considerable amount of time and effort. There are typically loose ends to tie and various other issues may arise, such as valuation or employment law matters.
However, business separations can often be resolved without litigation by engaging in successful settlement negotiations. With timely intervention and practical solutions, a business divorce can be resolved without heading to court. Starting the resolution process early on could result in a smooth transition for the owners and former owners, with minimal damage to the business.
Litigation and Arbitration
For particularly contentious business divorces, litigation or arbitration may be necessary. Litigation or arbitration tends to arise in situations where an owner has breached their contractual obligations to another owner, or where fraud or a breach of duty is involved. In those instances, formal legal proceedings may be the only option.
An attorney can help negotiate and advise on the following aspects of a business breakup:
- Purchasing, selling or dissolving your company.
- Buying-out of one or more business partners.
- Dividing your company’s assets and debts.
- Allocating your company’s intellectual property rights.
- Dealing with pre-existing contracts and clients.
- Assisting with the transition or exit of employees.
- Winding-up the company’s bank accounts and other cash reserves.
- Addressing any other concerns in the separation of owners.
- Determining whether litigation is the best option.
Whether you are looking for help negotiating your business dispute, or would like to bring or defend a claim, an experienced business attorney can guide you through the process. Our firm helps individuals and businesses in various industries navigate the labyrinth of business divorces.
For more information on our Business Divorce services, or to speak with an experienced NYC Business Divorce attorney Contact Us