Death and taxes have long been said to be the only two unavoidable things in life. But in our modern-day and age, divorce is running a close second. And messy domestic divorce situations aren’t the only divorces of the 21st century. Business divorces are challenging individuals and their attorneys, when partnerships and closely held business entities go south. What are your rights, and how do you salvage a business that has been your primary investment of a lifetime?
The first issue is what is the form of ownership? A sole proprietorship, a partnership, a corporation or other limited liability form of ownership? What are the controlling documents? What is the nature of the dispute? And what are the objectives of termination? Liquidation? Bankruptcy? Or a buy out?
We have received more than a few phone calls from someone with ownership in a small business who has found himself or herself in a business relationship that is troubled, like a bad marriage. Perhaps the partner is not doing his or her fair share. Perhaps the partner has chemical dependence issues (drugs and/or alcohol), mental health issues, or a host of other problems that can affect the viability of a business. Sometime the problem is theft, or stealing business opportunities (known as “usurpation”). In any situation, we will want to investigate both the dynamics and formation of the business.
Check out (click here) to learn how the dynamics and formation of the business affects the “divorce” division, or dissolution of the business.
If you are facing, or contemplating, a business divorce, call our office today. We will be happy to discuss your options and outline a proposed plan going forward. The first call is always free.