Five Tips For Avoiding Partnership Litigation In Florida
One of the last things that any business owner wants to deal with is litigation. Lawsuits can cost time, energy, and money. It can take your focus away from running the business. While litigation is never desirable for a business, it is especially difficult when you are locked in a dispute with your own business partner. In this article, our Miami partnership dispute lawyers offer six tips to help you avoid partnership litigation.
- Know What You are Getting Into Before You Enter a Business Partnership
Avoiding partnership litigation starts from the beginning. In many cases, partnership disputes are actually seeded many years prior—when the business partners enter a commercial relationship without clarifying their needs and objectives. Make sure you know exactly what you are getting yourself into before you form a business partnership.
- Get a Written Partnership Agreement
Even if you and your business partner have a great relationship, it is not good enough to rely on words and understanding alone. You need a written partnership agreement. Not only does a professionally drafted partnership agreement reduce the risk of litigation, it will help to protect your rights if you do end up locked in a dispute.
- Keep the Lines of Communication Open
Once a business partnership is already formed, you can go a long way towards limiting the risk of litigation by keeping the lines of communication open. In too many cases, partnership litigation could have been avoided if only the parties were able to have a true open and frank discussion before things started to spiral out of control.
- Make Sure Partnership Finances are Well Organized
Partnership disputes can arise for a wide range of different reasons. That being said, the overwhelming majority of business partnership disputes in South Florida are centered around finances. As a member of a partnership, it is imperative that you have a strong grasp on the business’ finances. Make sure that your company’s finances are well-organized. Doing so will reduce the risk of litigation and protect your personal financial interests.
- Be Proactive: Consider Mediation for Dispute
If a dispute does arise, it is important to be proactive. Not all partnership disputes end up in the courtroom. Quite the contrary, there is plenty of opportunity to find a solution in a partnership dispute outside of litigation—even if you are locked in a particularly heated disagreement. Mediation may be the answer. The Florida Courts describe mediation as a process whereby parties go before a neutral party mediator with the goal of working towards a settlement. It is a voluntary process. You are not required to reach a settlement in business mediation in Florida.
Call Our Miami, FL Partnership Dispute Attorneys for Help
At Pike & Lustig, LLP, our Florida partnership law attorneys help business partners find cost effective, low conflict solutions to legal disputes. If you are locked in a partnership dispute in South Florida, we are here to help to find the best path forward. Call us now for a no obligation, strictly confidential review and evaluation of your case.