Perhaps you’ve been with your business partner for a long time. It’s been years, maybe decades, and for a while, it was working out fine. However, over time you’ve found yourselves growing apart, spending less time together or fighting more frequently than you once did. Even if you still get along just fine otherwise, it might be time to consider a business divorce, for both the sake of your business and for your own sake.
A business divorce is pretty much what it sounds like. When business partners feel like they can no longer do business together, they decide to split up and go their separate ways. And just like with a more conventional divorce, the process of getting a business divorce can be far more complicated in practice than in theory, depending on how your business is organized and what sort of operating agreement you had prior to splitting up. You need to allocate how property will be divided, you need to figure out who will maintain control of the company, or whether there will even be a company at all, going forward.
For example, Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) can be difficult to divorce, if you don’t have a specific provision in your articles of organization about how to handle the removal of an LLC member or LLP partner. In some cases, it may result in the LLC or LLP being dissolved entirely, requiring it to be reformed as a new entity if the remaining partners or members want to continue doing business together. A shareholder in a corporation, on the other hand, can “divorce” by simply selling their shares in the company and walking away with cash in hand, provided they don’t mind leaving the assets behind with the remaining shareholders. Otherwise, that too may result in a complicated process of dissolving the company entirely, if some other arrangement can’t be reached.
Fortunately, if you find yourself looking to split up with your business partners, you can look to the experienced guidance of the business law attorneys at Blodnick, Fazio and Clark. The commercial litigation attorneys at Blodnick, Fazio & Clark are skilled and knowledgeable in the area of business law and commercial transactions. With an office conveniently located in Garden City, Nassau County, and Babylon in Suffolk County, the firm provides high-quality legal care at reasonable prices. If you require legal assistance concerning antitrust litigation, dissolution of a business, protecting your business from divorce, or another commercial litigation matter, call (516) 280-7105 or fill out our contact form for a free consultation.