The term “business divorce” may seem inappropriate at first glance, but anyone who has been in conflict with a business partner knows how difficult that can become. A business divorce is used to dissolve or reorganize a business when a partner, member, or co-owner in a business wants to leave and less drastic measures are not available. And just like with a regular divorce, there are signs that a business divorce might be what you need to resolve your issues in your business:
- You are literally getting divorced
- An important thing to remember is that most businesses (around 90%, according to the United States Census Bureau) are family owned. Very often, that means your business partner may also be your spouse, or another close relative. If you get divorced from your spouse, you may find it difficult to continue running a business with them, necessitating a business divorce along with your regular divorce.
- You have disagreements about running your business
- There are many decisions that go into determining how a business is run, but ideally, everyone involved in a business venture will be on the same page. Sometimes, though, disagreements about how to run your business can go from polite to angry, often more quickly than people realize. If these disagreements cannot be resolved amicably, a business divorce may be in order.
- You cannot get along with your business partner
- Aside from potential professional disputes, there is also the possibility that you may find you no longer personally like your business partners. While some people can continue to work alongside people they hate, many others find that kind of working environment to be intolerable. At that point, a business divorce may be best for both you and your business.
- You are not turning a profit
- Another reason some people will consider a business divorce is when their business fails to make a profit. They may decide that they would be better off on their own, or they may decide that trying to bring the business to profitability is just throwing good money after bad. In that case, a business divorce can be necessary to begin winding down the business’ affairs.
- You want to explore other business opportunities
- Sometimes, there is no problem with a business at all, except that one or more of the partners want to go on to explore other business opportunities. Given how time consuming and intensive running even one business can be, some people will prefer to give up their ownership stake in a company they are no longer passionate for, so they can go invest in a new, fresh idea. When that happens, it may necessitate a business divorce.
The business law attorneys at Blodnick, Fazio & Clark are skilled and knowledgeable in the areas of business law and commercial transactions. With offices conveniently located in Garden City, Nassau County, and Babylon, Suffolk County, the firm provides high-quality legal care at reasonable prices. If you require legal assistance concerning business startups, formation, corporate acquisitions and mergers, corporate restructuring, or another business matter, call (516) 280-7105 or fill out our contact form for a free consultation.