It’s rare to find relationships that last forever. Sometimes, these worsening relationships can involve yourself and business partners. Many options exist when disputes arise between you and a business partner in California. Understanding them can help ensure that you make good decisions.
Selling the business
For various reasons, all partners involved in a business might want out of this company. When this happens, these individuals might want to look for buyers. Two or more partners can sell their shares. This option can also provide business partners with sizeable payments.
Going through the mediation process
In most cases, two or more business partners want to resolve partnership disputes peacefully. Fortunately, meditation lets a neutral third party step in that acts in everyone’s best interests. A mediator hears everyone’s concerns and develops a plan to have them communicate healthily.
Taking a partner to court
Business partnerships can sometimes sour when someone breaches a contract or their fiduciary duties. If a business partner fails to satisfy the terms of their contract or employment, business litigation could be the best option. This choice will incur attorney and court-related expenses. But it could be the only way to obtain a fair outcome.
Filing for bankruptcy
If the business you and your partners manage isn’t doing well, everyone could be dealing with considerable debt. When debt becomes insurmountable, filing for bankruptcy could be a viable solution. Sometimes, restructuring the business is possible. In other cases, a complete business liquidation might be the only option.
Disagreements between business partners can be stressful. You, and your business partners, could remain on good terms with enough time and effort.