Business Partnership Breaking Up? How To Proactively Protect Your Rights
Breaking up with a partner is a difficult thing to do—and a business partner is no exception. If it is time for you and your business partner to go your separate ways, it is absolutely essential that you take proactive measures to protect your legal rights and financial interests. Here, our Palm Beach County partnership dispute attorney highlights the steps that you can take to proactively protect your rights if you are breaking up with a business partner.
Step #1: Make Sure You Understand the Current and Future Position of the Business
Before taking any action, it is important to fully understand the current and future position of the business. What does your partnership break up actually mean? Are you closing down the business? Is one partner buying out the other? Make sure you understand the full scope of what is happening.
Step #2: Obtain and Review Your Partnership Agreement for the Proper Procedures
In Florida, your rights and obligations in regards to a business partnership are derived largely from your partnership agreement. Review it carefully. Whether you are dissolving the partnership or one partner is exiting the business, the agreement should provide some instructions. Courts in Florida will always look to the partnership agreement if a dispute ends up in litigation.
Step #3: File the Proper Partnership Dissolution Forms (If Applicable)
If you are going to dissolve the business partnership, you must file the proper forms with Florida. Most often, you and your partner(s) will be required to complete and submit a form called Form CR2E070, Statement of Dissolution for Partnership.
Step #4: Ensure that All Interested Parties are Notified
Never leave other interested parties in the dark on what is happening with your partnership. You may have a duty—statutory or contractual—to provide some form of notice to other interested parties, such as creditors, vendors, and suppliers. By following the right procedures, you can reduce your risk of facing liability and preserve valuable commercial relationships.
Step #5: Be Ready to Seek Professional Legal Help if a Dispute Arises
The end of a business partnership does not always mean that there is going to be a legal dispute—but it is a risk that needs to be taken into consideration. Be ready to consult with a Florida partnership law attorney right away if a dispute arises. No matter the situation that you find yourself in, an experienced Florida partnership law attorney can help you move forward.
Set Up a Confidential Consultation With a West Palm Beach Partnership Lawyer
At Pike & Lustig, LLP, our West Palm Beach partnership dispute attorneys will protect your legal rights and business interests every step of the way. Do you have any questions about breaking up with a business partner? We are here as your legal resource. Call us now or contact us directly online for your fully private case assessment. Our law firm provides partnership law representation in West Palm Beach, Palm Beach County, and throughout all of South Florida.