If you are dealing with a business divorce, you need legal help to smooth the transition. The breakup of a business relationship can be stressful, costly, and time-consuming. You may not understand your legal rights or how best to divide up the business assets. Fortunately, legal assistance is available for business owners who are parting ways.
What Is a Business Divorce?
When you go into business with one or more partners, you naturally expect that your venture will be successful. Unfortunately, some business relationships do not work out as you had planned. Some reasons that business partners decide to separate include:
- Disagreements over important decisions
- Different visions and goals for your business
- A buyout or merger offer
- Harmful actions, such as being rude to customers or taking money from the business
- Lack of time spent on the business
- Failing to make capital contributions
- Financial problems leading to close of the business
At some point in your business relationship, you may realize that the business needs to break up to serve everyone’s best interests. If you need to break up your business for any reason, we refer to it as a business divorce. Like in a marital divorce, you and your business partner need to divide and distribute the business’s assets in order to end the relationship. Doing so could lead to even more tension and disagreements. That is why you need a business divorce lawyer’s advice moving forward.
Protecting Your Business During a Business Divorce
Once you have decided that you need to separate from your business partner, you should seek legal help. Ending a business relationship is not always as simple as splitting up the assets and turning off the lights. You may have the legal right to more parts of the business than you realize. For example, you may be entitled to a greater portion of the assets because you made a greater capital contribution than your partner when you started the business. Your business may have assets that you didn’t consider, such as trademarks. Also, you may need to set up legal protections if your partner is angry or vindictive about the business divorce. Finally, you may have the option to sell the business or buy out your partner.
Business divorce lawyers like our experienced team can review your situation to determine your best course of action. Legal help could include reviewing your operating agreement or corporate formation documents to assess your rights. It could include negotiating with your former partner regarding division of business assets. It could even include litigation over rights or business debts. The assistance you need will depend on the unique circumstances of your case.
How a Lawyer Can Help Protect You From Business Divorce
If you’re not yet at the point of business divorce, a lawyer can help protect you moving forward. You may have recently started a business and realize that you do not have appropriate legal protections in place. Or you might be on the brink of closing up shop and want to know your options. Our team can assist you in these situations.
We believe that protecting yourself in a business relationship begins with effective formation documents. If you are just starting out, you may need a partnership agreement or buy-sell agreement prepared for your business. These legally binding contracts can act as guides should you and your partners need a business divorce in the future. If you already have these agreements and are thinking about parting ways, we can review the documents and negotiate with your partners. With legal help, you may have the option to save the business and end your relationship amicably.
Let Us Help You
As experienced Houston business divorce lawyers, we help our clients find the best solution possible. When your business relationship needs to end, you need our advice that is tailored to your unique situation. Our lawyers can handle everything from review of your business formation agreements to business litigation. To set up a consultation, call (713) 936-5521 or use our convenient Contact Form.