Austin Business Partnership Dissolution Attorney
Business divorce is just that — a parting of the ways, legally and financially, of business partners who have, until now, shared authority in operation of a business. The need for a business divorce takes many people by surprise. A partnership of many years may dissolve as a result of disagreements such as the following:
- One partner alleges that the other has become greedy, taking most of the profits for himself or herself.
- The partners disagree on business decisions.
- One partner or the other seeks to make important decisions without the other’s consent.
John McDuff helps ensure that clients facing business dissolution emerge from the “divorce” with all available legal protections and the most favorable financial settlement that is available under the circumstances. Whether the point of contention is settled through negotiations, through mediation or in the courtroom, a valuation of all assets, including good will and trade secrets (e.g. customer lists), will most likely figure into the equation.
The Dark Side of Business Divorce
On occasion, there is a dark side. One partner seizes all of the money and changes the locks on the doors. One partner slanders the other, to all of the suppliers and customers of the business. Perhaps the partnership consisted of a money partner, an idea partner, and a service partner. When the idea partner’s concept is put into action, the other partners try to squeeze him out. Or, one partner files suit on the other, before any notice of a parting of the ways is given.
To accomplish a business divorce that does not devastate one or both parties, you may need to restructure debts, deal with sales tax arrears, and keep in mind tax consequences. John McDuff is experienced in all of these, and many other potential problems that may require resolution in preparation for your business divorce.
Reconciliation and restructuring of the partnership may be an option that you wish to consider, although this type of resolution is infrequent. If reconciliation is impossible, as will almost always be the case, a negotiated or mediated settlement may bring about a much-needed solution such as one partner getting the business, and the other getting cash, a note, and a lien on the company’s assets. Of course, polite, or vigorous, litigation may be necessary. John McDuff can negotiate or litigate, as the situation may need.
Business Divorce in Austin? Contact John McDuff Today.
Whatever the reason or the source of a business partnership dispute, you need to consult with an experienced business litigation lawyer sooner rather than later. I am John McDuff and I have over 20 years of experience handling the negotiation, mediation, and litigation of business divorce. The quality of my work as a lawyer is well recognized by my clients & I have received the AV rating* under Martindale-Hubbell’s peer review rating system. I primarily serve clients in Austin, Travis County, and Central Texas. Contact me at 512-457-1177 to schedule a consultation.