Many businesses throughout New York come from a partnership between multiple individuals. Unfortunately, the partners in a business may get into disputes, leading to potential business litigation that is stressful and overwhelming for all involved. There are several ways to resolve disputes without litigation, however.
Resolve financial disputes
Often, the most common cause of a financial dispute is the allocation of money. One way to avoid this dispute is to make information on the ownership of the business clear and straightforward. Create these rules from the beginning of the business, ensuring that you give information about salaries and profits.
Resolve disputes about day-to-day operations
Even if there is an even split of responsibilities concerning the day-to-day operations, there can still be disputes. This is especially true if one partner is not pulling his or her weight and not doing all aspects of his or her job. Try to meet your partner where he or she is, be upfront about your frustration and come to an agreement before filing a lawsuit.
Other steps to avoid litigation
There are other steps you can take to avoid future business litigation. These include:
- Forming partnerships with reliable people only
- Running background checks on any partners
- Reviewing accounting documentation with a business you are joining
- Making rules from the beginning in a meeting with the other partners
- Meeting with a lawyer about all contracts
What to do if there are no other options
You may try all these options and still not reach an agreement. In this case, business litigation might be the only option to save your business. A lawyer may be able to help you reach a settlement in the smoothest way possible.