Business divorce is exactly what it sounds like, it is a legal proceeding in which business partners end their business relationship. It can include some of the complexities and emotional entanglements of conventional divorce. Each business divorce is unique and requires careful study of the relationship between the parties and clear goals for the outcome.
How Does It Work?
Ideally, a successful business divorce would result in a court-ordered dissolution or purchase of one of the partner’s ownership interests in the entity at issue, however, this is not always possible. Sometimes non-judicial methods are more effective in creating leverage and lead to the desired separation. An experienced attorney will be able to assist in the business separation through judicial and non-judicial means. The attorney will need to complete a thorough review of the entity’s governing documents and the applicable statutes and case law to enact an effective separation.
When Is a Business Divorce Necessary?
A business divorce may be necessary if your partner has effectively locked you out of the business, is monopolizing employees for his personal goals, or if partners simply cannot agree on important day-to-day decisions of running and operating your business.