Business Divorce & Dissolution

Arizona Business Partnership Dispute Lawyers

No matter how successful a business may be, disputes between partners arise on a daily basis. Minor disputes are easily resolved internally, but major disputes can result in business dissolution or litigation between partners. In today’s world legal disputes are part of doing business. At The Law Offices of Donald W. Hudspeth, P.C. in Phoenix, Arizona, we will help you resolve the matter through negotiation or litigation.

Challenges of a Business Partnership

Many successful, high-profile businesses started with one person possessing the idea and the other having the financial wherewithal to provide funding or two “partners” with complementary education, knowledge and experience. But, having the finances to start a business is not the same as having enough money to sustain the operation and support both partners and the logical match is not always a personality match. Since the company is a legal entity, company money just cannot be drawn out for personal use. That creates conflict between two partners. Sometimes, it is resolved between them. Other times, it becomes the first step to greater problems that require an attorney's help.

Problems that lead to business dissolution can include breach of a contract or operating agreement, or a violation of fiduciary duty (self-dealing or misuse of company funds). Business dissolution can also happen following violation of non-compete agreements or misappropriation of trade secrets.

The Process of Business Dissolution

At The Law Offices of Donald W. Hudspeth, P.C., we will consult with you in negotiating the dissolution or represent you in any business or commercial litigation. Business dissolution is similar in some ways to a personal divorce between two spouses. Money and assets needs to be divided, which can create a contentious environment. We work toward an equitable distribution of business assets, establishing what will stay with the business and what will leave with the departing partners. We will also help set a mutually agreed upon buyout price.

Business partners need to maintain the highest standard of ethics and integrity. Company money and assets are just that and not for personal use. If you and a partner have come to a crossroads in your business relationship and wish to end it through business dissolution, please contact us. It is advisable to do this before the party’s begin to “act out” in the business relationship.