Partnership Disputes In Florida: What Is An Accounting?
Partnership disputes can be some of the most challenging commercial disputes to resolve. While business partners are supposed to be on the same team, they may not always see eye-to-eye. When a disagreement grows into a full blown dispute it can cause real damage to the partnership.
In Florida, business partners may be able to resolve disputes through a specialized process known as an “accounting.” In this blog post, our West Palm Beach partnership disputes attorney highlights the key things to know about accounting and explains how one can help you resolve a dispute.
Partnerships and Accountings: Know the Basics
One of the many challenges of dealing with a partnership dispute is that they can quickly become hotly contested, even personal. An accounting is a legal tool that helps refocus things on the actual underlying issues at hand. It is a comprehensive review of all of the business transactions of the partnership. A partnership accounting is overseen by a Florida state court—and at the completion of the process the court can divide the partnership’s assets and debts in an equitable manner.
An Accounting is a Two-Step Process
You cannot simply walk into a state court to set up an accounting for a partnership dispute. In Florida, an accounting is a two-step process. More specifically, the two key steps are as follows:
- Entitlement to an Accounting: First and foremost, you must prove that you are entitled to an accounting. In some cases, this is not especially challenging. If both parties agree that they were in a valid partnership, then both parties have a right to request an accounting under Florida law. However, if one or more parties to the case disputes the existence of a legally valid partnership, then the person requesting an accounting must prove that a partnership exists to move forward in the process.
- The Accounting Itself: During the accounting itself, the Florida court will have the authority to review all of the transactions of the partnership business. The court must use standard and accepted accounting practices. Ultimately, the goal is to determine who owes what to whom. In an accounting a Florida court has the power to adjust business accounts or assign certain assets or debts to specific business partners in order to obtain an equitable result.
While they can be an efficient, cost effective strategy to resolve a partnership dispute, accountings are also a complicated and specialized area of Florida law. If you have any specific questions about partnership disputes and accountings, contact an experienced Florida business litigation attorney for immediate help with your case.
Schedule a Confidential Consultation With a Partnership Lawyer in South Florida
At Pike & Lustig, LLP, our Florida commercial lawyers have extensive experience representing clients in the full range of business law matters, including partnership disputes. Call us now for immediate help. Consultations are always strictly confidential .With legal offices in West Palm Beach, Miami, and Palm Beach Gardens, we handle partnership disputes all over the region, including in Palm Beach County, Broward County, and Miami-Dade County.