How Do I Get Out of an Unfavorable Partnership?
Are you locked in an unfavorable partnership? With a proactive approach, you may be able to get out of the agreement. At Pike & Lustig, LLP, we handle the full range of partnership claims. Within this article, our West Palm Beach partnership lawyer provides an overview of your options for getting out of an unfavorable partnership agreement in Florida.
An Overview of Your Options for Getting Out of a Bad Partnership Agreement
Option #1: Assess the Agreement, Invoke Any Available Termination Option
You should always start with the partnership agreement itself. The agreement is the core document that establishes your rights and your responsibilities. A well-drafted partnership agreement in Florida will often include terms and conditions that allow for termination under certain circumstances. For example, there might be clauses about ending the partnership if one party breaches the agreement or fails to meet performance standards.
An Example: Imagine a partnership where one partner consistently fails to contribute his or her required share of the capital on a timely basis. The partnership agreement may have a clause stating that if a partner does not fulfill financial obligations, the other can initiate termination.
Option #2: Negotiate a Buyout of Your Interests or a Dissolution of the Business
If the partnership agreement does not offer a clear exit option in your case, negotiating a buyout or a dissolution might be the best option. Negotiation generally involves working towards a fair price for your share of the business. In some cases, your exit will allow the partnership to continue with the other partners. In other cases, your exit may result in a dissolution of the business.
An Example: Imagine that one partner of an accounting practice in South Florida wants out. They agree that the two other partners will pay them a sum of money for their share of the business. From there, the other two partners will continue to operate the accounting practice.
Option #3: Consider Your Legal Options (Forced Dissolution, Claim Against Other Partner, etc)
If negotiations fail and the partnership agreement does not provide a way out, legal action might be necessary. Among other things, this could include filing for a forced dissolution of the business or making a claim against your partner if they have engaged in unlawful or harmful business practices.
An Example: Imagine that two professionals are running a consulting firm together. One partner discovers that the other has been misappropriating funds. Based on this information, that partner may be able to file a lawsuit for forced dissolution on the grounds of breach of fiduciary duty.
Contact Our West Palm Beach Partnership Dispute Lawyer Today
At Pike & Lustig, LLP, our West Palm Beach partnership dispute attorney provides results-driven legal advocacy. If you are trying to get out of an unfavorable partnership agreement, we are more than ready to help. Contact our legal team today to set up your confidential case assessment. With a law office in West Palm Beach, our firm takes on partnership disputes all across Southeast Florida.