Business Divorce in Texas

What Partners in Closely Held Businesses Need to Know About Splitting Up

Business Divorce Lawyers Unless you have a business that is a sole proprietorship, you will most likely run into disputes with your partners or other business co-owners in the course of the life of your business.

Sometimes business disputes between partners or co-owners get to the point where one of the partners no longer wants to resolve the issue and instead says she wants to leave the business.

This can be especially difficult when the business partners are close friends, or in some cases family members. You do not want to have a business divorce ruin a relationship with a friend or sibling if it can be at all avoided. In closely held corporations, business partners deciding to split up can drastically alter the nature of the business and its ability to function if the business divorce is not handled carefully.

Business divorces—meaning when business partners split up—can be extremely complex and difficult to navigate. It is important to work with an attorney who has experience with business divorce matters and who can help you to negotiate your business separation and to move forward in a way that is reasonable and even favorable to you and any other shareholders in the company.

At Lindquist Wood Edwards LLP, our attorneys have experience assisting clients in Texas with shareholder disputes and business divorces, and we are ready to begin developing a strategy for you today.

A note from Texas business divorce attorney Robert Wood:

Business Divorce Attorney Robert WoodIf you’re facing a dispute with a partner in closely held business, you know that there is a lot at stake. I hope you’ll take a few minutes to reach out to me to discuss your situation. Our Firm has extensive experience handling business divorce matters. We are not only equipped to help resolve your dispute through mediation or arbitration, but we are also prepared to litigate your case if that’s what’s required to ensure that your interests are aggressively pursued. Thank you for stopping by our site, and I hope to hear from you soon. Click here to schedule a consultation today.

 

Signs of an Impending Business Divorce

There are many different kinds of business structures that can face an impending business divorce. Partnerships are generally the simplest type of business for two or more individuals who are starting a business, according to the U.S. Small Business Administration (SBA).

In both limited partnerships (where one general partner has unlimited liability and the other partners have limited liability), as well as in limited liability partnerships (where all owners have limited liability), disputes can arise. Similarly, owners of a limited liability corporation (LLC) can get into disagreements about the business, and one of the owners can decide to leave.

According to an article in Entrepreneur Magazine, the following are common signs that a business may be headed for a business divorce:

 

Business Divorces Can Be Speedy and Successful

The goal of any business divorce should be to obtain a quick, effective, and reasonable resolution for all parties involved. At Lindquist Wood Edwards LLP, we use our experience representing clients in business divorces and business dissolutions to handle your complex situation. For example, our business law attorneys have experience with the following issues surrounding business divorce:

 

Managing Your Business Divorce as Painlessly as Possible

At Lindquist Wood Edwards LLP, we want to help you to manage your business divorce as painlessly as possible. Typically, negotiating a business divorce with terms that are agreeable to the partners is the best way to resolve your dispute efficiently and to avoid litigation.

The Entrepreneur Magazine article emphasizes that, with the help of a business lawyer, the following goals can help to smooth over your business divorce and to avoid litigation:

 

Disputes and Minority Shareholders in a Business Divorce

What kind of say do minority shareholders get when owners of a closely held business decide to split up? In other words, how do owners who do not have a controlling interest in the business get a say in how a business dissolution occur?

These are complicated questions, and these issues often result in tense negotiations during a business divorce. For business owners who do not have a controlling interest in the business, negotiations can be particularly important in terms of getting a fair resolution.

While we have discussed the effects of business divorce in partnerships and LLCs, what about corporations? How does the dissolution of a corporation affect shareholders in a corporation? In short, corporations are much different in terms of business structure from partnerships and LLCs, and their dissolution works quite differently.

Corporations typically can continue to function when one or more of the shareholders decide to leave the company or to sell off his or her shares. In other words, a “business divorce” is not as applicable to corporations as to partnerships and LLCs, as well as to certain other kinds of business structures.

 

Contact a Texas Business Law Attorney About Your Partnership Dispute

At Lindquist Wood Edwards LLP, our Dallas business attorneys know that business divorce is complicated for all parties involved. While negotiating a business divorce is often the most cost-effective resolution, we are prepared to litigate your case if negotiations cannot produce an equitable result. Contact us today.

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