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Options for an effective resolution to a partnership dispute

On Behalf of | Oct 14, 2022 | Business Law

When you started your business, you and your partner had dreams of working together for years to come, using your combined skills to build and develop a successful company. However, you may find that, over time, these dreams are not going to come to fruition as you once expected, as you and your business partner are unable to work together any longer. In some cases, issues between business partners can become full-fledged legal disputes that can threaten the overall health of the company.

If you find yourself in a dispute with your business partner, seeking a beneficial outcome is likely one of your main priorities. Litigation is costly and stressful, and there may be ways you can resolve the matter without going to court. It may be helpful to learn about the specific options available to you by which you can seek an effective resolution to an ongoing partnership dispute.

Reaching a beneficial conclusion

One of the most important ways you can seek a beneficial outcome to an ongoing partnership dispute is to remember that emotionally based decisions are not always good, practical choices. It may be necessary for you to set aside how you feel in the moment in order to pursue an outcome that will be best for your business. Some of the specific ways business partners can resolve ongoing disputes or dissolve their ongoing partnership include:

  • Mediation — This is a dispute resolution method that employs a neutral third party who can help two opposing parties work through issues in an organized manner.
  • Sell to new owners — There may be a situation in which two business partners may feel as if neither one can or wants to continue operating the business, and it would be appropriate to simply sell the company to new owners.
  • Buy-out — If one business partner no longer wishes to continue working with the other, it may be appropriate for one partner to buy out his or her portion of the company in order to keep the business in operation.
  • Litigation — While it is often a last resort, it may be necessary to go to court in order to secure a resolution to an ongoing dispute between business partners. This may be the most effective way to protect the long-term interests of the company.

The ultimate goal in seeking a resolution to an ongoing partnership dispute is reaching terms that will allow a company to continue operating smoothly. If you are no longer able to work with your business partner, you may seek other options for concluding the matter without going to court. However, whether it is in court or through another process, you have the right to fight for your personal interests and those of your Maryland company.