Many people compare business partnerships to domestic ones, and it’s easy to see why. Just like marriage, a business takes a lot of dedication and hard work; and, breaking up can be hugely expensive. Business divorces can destroy a business and any assets you have spent years building. While business divorces are sometimes necessary and the best course of action, every effort should be made to avoid these costly breakups.
Start With A Solid Foundation
Businesses are built on relationships and more than just the relationship between partners. Businesses will have relationships with other individuals, companies, and vendors in order to operate. Every relationship (including partnerships) needs to be clearly and specifically defined in a well written and thorough contract. Contracts between business partners need to clearly define each person’s duties, roles, investments in the business, compensation, and expectations. When these are not clearly defined, partners can easily find themselves in complex disputes.
Contracts with other internal and external individuals and companies are also a common source of conflicts that lead to business disputes. Your relationships with employees, vendors, contractors, etc. will function best with specific contracts outlining the roles and duties. This ensures partners are on the same page about the relationships necessary for the business.
Don’t Hesitate To Talk To An Attorney
Most business owners make every effort to avoid an attorney’s office, but this is a mistake. Talking with an experienced business law attorney does not mean you are filing a lawsuit. Attorneys can also act as counselors to business partners, helping them understand the contractual obligations currently in place and advising them on the best path forward for the business, which does not have to include litigation. An experienced business lawyer will put the business’ interests first and provide legal strategies that preserve the business you’ve worked hard to build.
Houston Business Lawyers
At Feldman & Feldman, our Houston business lawyers understand litigation is not always the answer. If you’re looking for honest legal advice that will help your business grow and avoid business divorce, schedule an appointment with one of dedicated attorneys. We’ve helped scores of business partners resolve disputes that could have destroyed their businesses. You can rest assured we will help you protect your business.