Four Tips for Resolving Partnership Disputes Between Family Members in Florida
A partnership is one of the most effective, efficient business entities. Though, a partnership is only as strong as the professional relationship between its members. With this in mind, it is no wonder that so many people enter into family-based business partners. After all, who better to trust with your business than your closest loved ones.
Unfortunately, the reality is not always so smooth. In fact, in a 2019 article, Forbes Magazine described family business partnerships as a “potential disaster waiting to happen.” Of course, it does not have to be that way. Disagreements between family business partners can often be resolved without any serious conflict. Here, our West Palm Beach partnership dispute attorneys offer four tips that you can use.
- Early Intervention is Key to Resolving Partnership Disputes
With partnership disputes, early intervention is one of the keys to reaching a successful resolution. Do not allow a disagreement between your family business partner to linger unaddressed. The longer a disagreement is allowed to manifest unchecked, the more difficult it will be to find an effective, low-conflict resolution. Talking about it now can spare you serious headaches down the road.
- Always Look to the Partnership Agreement First
You should always have a written partnership agreement. Even when you are in a family business, partnership agreement is still a must. It helps to clarify expectations, reduce the risk of disagreements, and resolve disputes more quickly. If you do have a partnership agreement, that is the place to start. If you do not have a partnership agreement, the dispute you are involved with should serve a trigger to get one.
- Keep Business and Family Separate (At Least as Much As Possible)
The last thing you want is for a business dispute to cause harm to your personal relationships. This is a source of serious problems for many family business partners. A business dispute turns into a personal dispute and that personal dispute only makes the initial business disagreement all the worse. While it is difficult to do in practice, you should try to keep your business life and family life separate to the maximum extent possible.
- Consider Mediation or Alternative Dispute Resolution
Partnership disputes—especially family partnership disputes—are often well-suited for business mediation or another low-conflict form of alternative dispute resolution. Through mediation, you and your family member(s) can work collaboratively towards a solution that actually makes sense for both parties and for the business as a whole.
Speak to Our West Palm Beach Partnership Dispute Lawyers Today
At Pike & Lustig, LLP, our Florida partnership dispute attorneys have the skills, knowledge, and tenacity that you can rely on. If you are involved in a partnership dispute with a family member, we are more than ready to help you find a solution. Do not let this problem linger. Call us today for a confidential, no commitment case evaluation. With offices in West Palm Beach, Wellington and Miami, we provide partnership law services throughout South Florida.