7 Reasons You Might Need a Business Divorce

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  2. 7 Reasons You Might Need a Business Divorce
business divorce

Business divorce is a term you may have heard recently. You’ve probably heard the term “divorce” used most often about the termination of a marriage. But business partners may find they might need a business divorce for one or more of the following reasons.

#1. You no longer share the same vision for the company.

In the early days of your business partnership, you probably shared the same vision and goals for the new company. As time goes on, differences of opinion arise. Some disagreements become insurmountable obstacles that make a continued business relationship untenable. Business divorce might be your best option.

#2. You are unable to agree on business operations.

Have you and your business partners started arguing over how to run the business? If you cannot compromise or negotiate a settlement, it might be time to speak with an attorney about splitting up.

#3. Partners hiding information can be a good reason to consider business divorce.

You and your business partner may seem to have a decent relationship. But you start noticing a breakdown in communications. Your partner gives increasingly vague answers to your questions when he or she answers at all. Employees may try to talk to you about business-related issues, but you are mystified because your partner never mentioned the issue.

This situation could mean that one or both of you have gotten lax about full disclosure. It could also mean it’s time to consider a business divorce.

#4. The business is suffering.

Constant squabbling and power struggles can’t be good for your company. Both internal and external stakeholders may notice confusion and disagreement over the company’s goals and operations.

Staying together for the sake of the shareholders or the employees might not be a viable option. But business divorce might.

#5. There’s been inappropriate use of business resources, leading to talks of business divorce.

Business owners generally like to watch the bottom line. Expenses that increase without providing a good ROI could spell trouble for your company’s future. You might also notice that inventory

has gone down or that company vehicles are being used for personal business. Cutting your losses now might involve negotiating a business divorce settlement.

#6. Embezzlement or fraud has occurred.

Unfortunately, you may learn that your formerly trustworthy co-owner has been stealing from the company. Also, maybe your partner has lied or misrepresented facts in a way that harms the company or you personally. Situations like this are never easy, but it’s best to talk to an attorney sooner rather than later to avoid being considered a co-conspirator.

#7. Abandonment can lead to a business divorce.

It may not be obvious at first, especially if you shouldered most of the day-to-day operations. However, at some point, you may realize that your business partner is just not there anymore. He or she seldom shows up for meetings or participates in any company events. A business divorce could help you get rid of someone who no longer contributes but instead serves as a drain on your energy.

Are Your Business Disputes Headed to a Business Divorce?

The attorneys at Henke, Williams & Boll assist clients like you with business divorce, litigation, and other matters. But we don’t just help a little. We win cases through aggressive representation using extensive knowledge of the Texas legal system.

Our attorneys have more than 100 combined years of experience practicing law, and our broad range of knowledge enables us to provide practical solutions tailored to the unique needs of our clients. We are a proud law firm with commitment and passion for assisting those in need. Let us help you get the results you deserve.

For a free consultation or phone appointment, call 713-940-4500 or use the convenient contact form located on our website. We represent clients in the Houston area, including Harris County, Montgomery County, Waller County, Fort Bend County, Galveston County, and Brazoria County.


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