Disputes are common among business partners, and they often need to be resolved so that the partnership can continue successfully. This can lead to rather complex litigation, and it’s important for both partners to know what steps to take.
But why do these disagreements happen? The complexity can be tied to the root cause, so let’s take a look at a few common examples.
Financial issues
First and foremost, financial inequality often leads to disputes between partners. They may not feel that the other person is using the business’s money wisely, or they may feel that they are investing more of their time and money to get the same return. It’s important to draft a partnership agreement at the beginning to define how this should be handled, and it can lead to a dispute if you do not.
Goals and priorities
Some partners will also get into disputes over their goals for the company or what priorities they have. This can be exceedingly complex because it’s not as if one person is right and the other is wrong. Both partners could just have different perspectives that are equally valid.
Work-related duties
Finally, the rules and responsibilities the partners have within the business can cause conflict. This is especially true if both people believe they have the decision-making power in a certain situation, but it is really shared between each of them. It can be very complicated to find a compromise or a solution that works for all involved.
Exploring your options
Have you found yourself in a dispute with your business partner this year? If you’re facing potentially complex litigation, take the time to look into all of the legal options at your disposal.