Legal partnerships are a good way to help you increase profits, as you will have a partner helping you with advice. At the same time, if you and your partner have a disagreement, it can lead to a full legal dispute in your business. A dispute can lead to loss of revenue, especially if it is not handled right.
It’s important to keep your eyes on the law books when handling a partnership dispute, and not let yourself be sidetracked by “getting around the system.” It’s important to be fair and to be prepared. Here are some tactics that can help you handle a partnership dispute in a manner that is correct and legal.
1. Plan Ahead
One legal tactic to handle a partnership dispute is to plan for it as early as possible. And by this, we don’t mean to plan the fight – but plan the resolution. Think about what topics might trigger a disagreement with your partner and try to come up with methods to stop them before they begin.
For instance, so that the dispute does not appear because someone is doing an unfair amount of work, you might want to settle all the responsibilities in advance, lay down the groundwork. A partnership agreement will help settle the legality of everything. For example, Orlando partnership disputes are often resolved by checking with this kind of document first.
Include the holiday season here as well, or any other occasion that might have one of the partners working overtime. This way, there won’t be any questions when it comes to the division of labor. This mediation process can help you save your business in the long run.
2. Have An Active Listening Session
Conflicts usually arise because one shareholder doesn’t talk or the other does not listen. Or perhaps both of them are talking, but none of them is actively listening. This is why it is important to have regular sessions where you are both actively listening to one another.
For at least three to five minutes during important decision-making moments, actively talk with your partner and listen to their ideas, without judging their beliefs. By understanding one another, you will be able to set aside your differences and create a profitable and competitive business.
A good tip would be to have these sessions with your legal counselor. This way, if someone is not looking at matters objectively, the counselor would be able to step in. This can potentially help solve a dispute and maybe even save a partnership.
3. Hire A Legal Counsel
Depending on the state or city that you are in, you may not be able to do much unless you have someone to handle the legal part of your business. For example, if you live in Orlando, it is very common to hire a legal counsel (usually an attorney) to help you with your company. This way, you can handle your business with more ease.
Legal counsels can also help you make the first and final drafts of your documents. They can help bring both partners in a legal understanding over what the business involves, what their rights and responsibilities are.
Legal counsels are very knowledgeable on the state laws, and they’ll be able to tell you precisely how your business should be handled. They will settle the official records so that all shareholders know what to expect. This will also prevent a dispute from blowing out of proportion. They can manage the situation before it gets in front of a judge.
4. Settle On The Appropriate Finalization
If the partnership is no longer salvageable, you may help yourself and your partner by choosing the right resolution. Going to court can be expensive, so you may want to hire the help of your legal counsel to determine what you should do next.
A buy-out is very often the main solution if the partners decide they can no longer work together. One partner will buy the company from the other, which will allow the business to continue.
A business sell-out is also an option, where the business is sold to new owners. Doing this before you go to court can help you save money on lawsuits and other legal matters.
The Bottom Line
Ideally, before it reaches the worst-case scenario, you may want to have an open conversation with your partner. By being open about your expectations and setting the ground documents, you should be able to avoid these legal disputes in the first place.
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