Business Divorce – What to Expect!
When the owners of a business decide to call it quits, the process can often become personal and rancorous, just like a dissolving marriage. Unlike the splitting of public companies, which often entails the division of large entities to gain market or operational advantages, business divorces occur between the owners of private enterprises. The owners are often founders, friends, relatives, and, in any case, people who have worked along side for years. When the split is perceived as unfair by one or both sides, a sense of betrayal often heightens emotions.
If you are thinking about a business divorce, expect the situation to be awkward and uncomfortable. By keeping a level head and remaining professional, the process can be completed much faster and with less stress. A corporate business divorce is governed first by state law and then by the governing documents. Other entities, such as LLCs, are governed first by the governing documents and second by state law. Whichever type of entity your business is, to make a business divorce go smoothly and to protect your interests during the split, contact one of the experienced business lawyers in Philadelphia that specialize in business divorce.
In a business divorce, partners are separating a private business, which means, unlike with public entitles, the partners are playing with their own money. Because of this, it’s in the best interests of the partners to dissolve the partnership without destroying the business assets. In cases where a dispute between partners cannot be resolved, litigation may result, which can substantially deplete assets.
A PA business attorney can help you to resolve your business divorce as cost-effectively as possible. The attorney reviews your governing documents and advises you on all applicable state laws. Your attorney will protect your rights and assert them to protect your interests. When necessary, your attorney can handle resolutions through mediation, arbitration, and litigation.
If considering a business divorce, contact one of the business lawyers in Philadelphia who has experience in business divorce right away. It is important to avoid pitfalls, such as in the timing of the split and filings. In many business divorce cases, the split occurs after the death of an owner, in which case, employing Philadelphia PA estate business attorneys with experience in business divorce makes the most sense.
Business divorce is never easy. When multiple stakeholders feel they are leaving behind a business they worked hard to build, it’s natural for personal feelings to become involved. Business divorce legal practitioners advise on the fastest and most cost-effective methods of splitting the business fairly and legally.