Let’s face it, when most people hear the word divorce they think about ending a marriage. After all, by definition divorce is, “a judicial declaration dissolving a marriage in whole or in part, especially one that releases the marriage partners from all matrimonial obligations.” Another definition is, “Any formal separation of husband and wife according to established custom.” However, a more generic definition is, “Total separation; disunion.”
If you look at that final definition, total separation or disunion, you’ll notice the context does not necessarily refer to marriage of persons. It could refer to a total separation or disunion of a contract or a business.
As an Atlanta business litigation lawyer, Jay Brownstein has years of experience assisting clients with business dissolutions and divorces. While a business divorce does not involve the ending of the marital union of two people, it does involve the separation of a business.
There are numerous scenarios in which a business divorce might become necessary, varying widely from one situation to another. Sometimes when a business is formed between two or more partners, a formal agreement exists that outlines the parties’ rights upon separation. However, many partnerships do not have a written agreement. In those cases, the parties’ rights can be dictated by the circumstances and applicable law.
After a business is formed, a variety of situations can occur in which one or more partners or shareholders realize that a change must occur. Differences in business strategies, goals or financial philosophies can cause serious obstacles to the continued operation of a business. If business partners agree to part ways or dissolve a business, an appropriate agreement for dissolution, transfer in ownership, or partnership buyout can be drafted and signed by the parties. However, where a disagreement can not be resolved amicably, a business divorce may require that legal counsel take certain actions to protect a client’s legal rights (including the possible filing of a court action).
If you are facing a disagreement with your business partners and need to find a resolution that is agreeable and legally sound, contact Atlanta business dispute attorney Jay Brownstein.
