Sheehan & Associates, P.L.C.

Michigan business litigation: dealing with partnership disputes

Whether taking on a partner or starting out with a partner, disputes among business co-owners is often inevitable. Extensive planning can help business owners in Michigan avoid some issues, but, unfortunately, there are some things that cannot be foreseen. If partnership disputes arise and attempts to resolve issues fail, sometimes seeking the assistance of a business litigation attorney may become necessary.

The relationship between business partners is often compared to a spousal relationship. There are times when couples can talk about things and successfully resolve issues that may present themselves. Many couples even create prenuptial agreements to protect themselves should things fail to work out. Business partnerships are quite similar. Contracts similar to prenups can be created beforehand, and co-owners can even seek counseling to try to talk through problems.

At the end of the day, being a sole proprietor may seem easier, but, in some aspects, there are certainly benefits to taking on or starting out with a partner. However, there are several things that one may want to consider before forming a partnership. These things include expectations, decision-making processes and limitations.

A marriage is not usually entered into without serious thought and planning, and a business relationship should be given the same consideration. The ability to trust and communicate with one's business partner is vital to the future success of a company. Partnership contracts can help keep co-owners on the same page and accountable to one another, while counseling may prove beneficial should the relationship become strained. However, when contracts are broken and issues become too great to resolve alone, company owners in Michigan can use business litigation in order to find acceptable solutions to the issues at hand.

Source:, "Why business partners need a pre-nup", Rick Spence, April 30, 2015

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