Separations between partners have increased since the downturn of the economy.  A business partnership divorce, so to speak, may occur in a failed business, winding down of business venture, or the worst case scenario–a hostile divorce usually caused by a breach of the partnership agreement or other bad faith dealings.

Dissolving a partnership may get messy whether amicable or not.  Splitting future profits or current assets and liabilities easily become an issue very quickly (like parents fighting over their children).  Business that have no assets and significant debt is usually more problamatic for the parties compared to a business that can liquidate and split proceeds accordingly.  Splitting up liabilities is espeically an issue where there are personal liabilities or guarantees left by one or more of the partners after termination of the relationship.  A complicated break can get messier with one partner who has breached their agreement and caused damages have to the business and other partners.

All too often many of these messy breakups occur because of a break down in communication –just like any relationship.  Many times agreements are not put in writing or general template, boilerplate, fill-in-the-blank contracts are used.  Expectations are not set up from the onset and checks throughout the relationship.

The first answer may not be to file a lawsuit; a good attorney will pursue alternative means that may save you on your monthly retainer.  Nonetheless, be prepared for a long haul if you can not resolve a dispute before litigation.

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