Partnership disputes can happen even in the most carefully planned ventures, and when tensions rise, the future of your business may hang in the balance. How you respond matters. Acting quickly, thoughtfully and with a clear understanding of your legal options can help protect your investment and peace of mind.
Here’s what to do if you’re embroiled in a dispute with your business partner.
Review your partnership agreement
First things first, go through your partnership agreement. This document should outline how to handle disputes among partners, whether through negotiation, mediation or arbitration. If those provisions exist, follow them closely. Nevada courts often refer to these agreements as a guide when deciding such cases, and skipping over them can put you at a disadvantage.
Stay open to solutions that work for everyone
It’s easy to get caught up in the frustration of a dispute and dig in your heels. However, keeping an open mind can go a long way toward resolving issues without damaging the business you’ve worked so hard to build.
For instance, you may be better off using alternative dispute resolution mechanisms to resolve the matter instead of rushing to court. It can increase the chances of finding a resolution that preserves the partnership or allows for a respectful separation.
Document everything
Keep detailed records of your communication, decisions and any actions taken that affect the business. As the situation unfolds, clear documentation can be vital if legal intervention becomes necessary. It can also help clarify misunderstandings and reinforce your position during legal proceedings.
Be prepared to go all the way when necessary
Unfortunately, not all disputes can be resolved outside of court. If everything else fails, litigation may be the only practical option. Being prepared with the proper support ensures you’re fully prepared to protect your interests and navigate the complexities of the legal system.