A business divorce is a process in which co-owners, business partners, or shareholders legally end their professional relationship. A business divorce can occur in a variety of types of business entities, including limited liability companies (LLCs), partnerships, and corporations. Unlike a divorce between two individuals, a business divorce focuses on the division of a business’s responsibilities, liabilities, and assets. The business divorce process typically requires the guidance of financial, legal, and business advisors to ensure an equitable and fair resolution. For assistance with business divorce in Providence, please contact the Law Offices of William Kolb, LLC.
Common Reasons for Business Divorce
Strategic Differences
Strategic differences sometimes arise in business relationships when co-owners or business partners have separate visions for the future of the company. For example, one business partner might want to expand the business into new markets, and the other may prefer to consolidate existing operations. These types of disagreements can negatively affect the success and growth of the business, thereby making it necessary to separate.
Financial Disagreements
Financial disagreements are another common reason that business partners and owners choose to go their separate ways. These types of conflicts often involve disagreements regarding financial management practices, profit distribution, investment strategies, and the financial health of the business. For example, business partners may disagree on whether to distribute profits or reinvest them, or they may have different appetites for financial risk.
Personal Circumstances
The personal circumstances of the individuals involved in a business can also lead to business divorce. Issues like divorce, illness, and family obligations can have a significant impact on business relationships. For example, a business partner’s poor health may prevent him from fulfilling his duties as they relate to the business, thereby leading to issues with the other partners. In addition, disputes between family members involved in a family business can affect their professional relationships, thereby harming the business.
Signs You May Need to Hire a Business Divorce Lawyer
There are a number of common signs that a business divorce may be necessary. Depending on the type of business structure involved, disputes can either be relatively simple or extremely difficult to resolve. Below are some signs that you may need to hire a business divorce lawyer:
- Your business was created under an agreement that all of the business partners would contribute equally, but one partner is not doing his or her fair share of the work.
- You and your business partners have conflicting work styles or different approaches, thereby creating conflict.
- Serious disagreements about the characteristics of the business are occurring.
In addition to the above signs, if you are experiencing conflict of any kind with your business partners or co-owners, this may be a sign that a business divorce is in order. The best way to approach the business divorce process is with the help of an experienced business divorce attorney.
How a Business Divorce Attorney Can Help
If you’ve decided that a business divorce is necessary, you should contact a business divorce attorney for assistance. There are several ways that an experienced business divorce attorney can help you. Specifically, when you contact our firm for assistance with the business divorce process, we can:
- Retain business evaluation experts to obtain an accurate assessment of the value of your business
- Ensure that tax issues related to your business are properly handled
- Work with investigators to uncover key information about your business
- Negotiate terms
- Address outstanding agreements among co-owners or partners
- Address outstanding contracts with purchasers, suppliers, contractors, and other third parties involved with your business
- Oversee employment law issues associated with the business divorce
Contact a Providence Business Divorce Attorney
If you are seeking a business divorce in Providence, Rhode Island, you need an experienced Providence business divorce attorney on your side. At the Law Offices of William Kolb, LLC, we are here to help with your Providence business divorce needs. When you come to us for assistance, experienced Providence business divorce attorney William Kolb will do everything possible to help you obtain a successful result in your matter. Please contact us today to schedule an initial consultation with an experienced Providence business divorce attorney.