Resolving Business Partnership Disputes In Minneapolis And Beyond
Last updated on March 19, 2025
Navigating a business partnership dispute can be a daunting and stressful experience. Disagreements with business partners not only affect your professional life but can also take a toll personally.
MKT Law, was founded in Minneapolis by Mark K. Thompson. With over 25 years of legal experience providing businesses and corporations with legal guidance and advice, Mark has dedicated his litigation-centered practice to supporting businesses throughout the greater Twin Cities metro area.
Common Reasons For Business Partnership Disputes
Partnerships, while often rewarding, can sometimes encounter conflicts that need resolution. Common disputes that threaten to derail a partnership include:
- Unequal work contribution: Partners may feel that workload distribution is not fair, leading to tension.
- Financial disagreements: Disputes often erupt over how money is managed or distributed within the business. Profit sharing-disagreements, financial mismanagement and partnership accounting disputes can destroy a partnership relationship.
- Intellectual property disputes: Disagreements about the ownership of intellectual property rights can cause tension between partners.
- Strategic direction conflicts: Differing visions for the future of the business can cause significant disagreements.
- Breach of fiduciary duty: When one partner acts in their own interest rather than the partnership’s, trust can be broken.
- Miscommunication: Poor communication can lead to misunderstandings and conflict.
Attorney Thompson has extensive experience resolving partnership disputes effectively. Many partnerships include arbitration clauses, and he can help negotiate a resolution before resorting to arbitration or court proceedings.
He provides his clients with personalized guidance, listening to their needs, helping them define their goals and collaborating together to form legal strategies. In partnership disputes, it is important to preserve the business relationship whenever possible. Negotiating a resolution, sometimes with the help of mediation, can go a long way to preserving the business relationship. Even if the partners to go their separate ways in a partnership divorce, the more amicable the resolution the better for everyone involved.
How Can You Avoid Disputes With Your Business Partners?
Avoiding disputes begins with clear communication and well-documented agreements. Establishing a strong partnership agreement at the outset, which outlines roles, responsibilities and conflict resolution strategies, is important. A business startup lawyer can draft a shareholder or partnership agreement that can spell out expectations and set-forth directives for conflict resolution can go a long way to preventing business litigation over the course of the partnership. Regular check-ins and open communication can help partners stay aligned and address issues before they escalate. It’s also important to be adaptable and open to compromise when partners find themselves facing a disagreement.
What Is Business Continuity Planning And How Can It Help A Partnership?
Business continuity planning involves preparing for unexpected disruptions to ensure that the business can continue to operate smoothly. For partnerships, this planning includes strategies for handling disputes, changes in leadership, partner buyouts or financial challenges.
By having a plan in place, partners can mitigate the impact of disputes and safeguard the day-to-day business operations to make sure the business remains stable. This proactive approach not only protects the business but also strengthens the partnership by providing clear guidelines for navigating challenges.
Why Is Business Valuation Important For Resolving Partnership Disputes?
Understanding the value of your business is critical when resolving disputes, especially if a partner wishes to exit or if the partnership is dissolving. A business valuation provides an objective measure of the business’s worth, which can help in negotiations and ensure that all parties receive a fair outcome in the event of a business divorce or partnership dissolution. This process can also identify areas of strength and weakness within the business, providing insights that can help resolve disputes and improve operations moving forward.
Consult A Minneapolis Business Partnership Disputes Attorney
If you are facing a business partnership dispute, it’s important to seek professional guidance and advice for the sake of your stakeholders. Contact MKT Law, to discuss your situation with an experienced partnership disputes attorney. You can call 612-217-2913 to schedule an appointment or send a message through the firm’s online form.