Choosing the wrong business partner can set you up for disputes

Choosing the right partner with whom to start a business is a bit like getting married. Make the right choice and you can look forward to many happy years ahead. Pick the wrong person and you are trapped in a shared misery.

This can be particularly precarious when your partner is also your spouse, a blood relative or an in-law. The negative effects of a soured business partnership can then bleed over into your personal relationships and create havoc with family unity.

What the numbers say

Making the right choice at the outset can make the difference in your shared endeavor being one of the 30% of businesses that succeed as opposed to the 70% that are doomed to fail.

Too close for comfort?

If you are already in a partnership with a spouse or relative, you may be able to salvage both relationships when business disputes arise by maintaining a division between the business relationship and your personal ties. That means not glaring at one another over the mashed potatoes and gravy during Sunday dinner due to disagreements over a personnel matter or other disputes.

You have to be able to put aside personal feelings about your business partner when it's time to make crucial decisions regarding your company. If you and your spouse are divorcing and your brother-in-law is your partner, you can't let acrimony creep into the business side of the relationship or it will be detrimental to your company's future.

When disputes arise

Just like all relationships wax and wane over time, your business partnership will likely have its share of ups and downs. That's normal and generally not something to worry too much about. But sometimes issues arise that are unresolvable between the partners without legal intervention.

It may be that the best course of action is to dissolve the partnership and both partners to go their own ways. The problem is that it can be much stickier to get out of a business partnership than it is to enter into one.

If such is the case for you, your first step should be to seek professional legal guidance to protect your rights in California when severing business ties.

No Comments

Leave a comment
Comment Information
Set up an Initial Consultation »

Need Our Help?

Contact us today to set up an initial consultation with an attorney in Truckee, Sacramento, Reno, Tahoe City, South Lake Tahoe/Zephyr Cove, or Incline Village/Crystal Bay. We can be reached at 530-214-8700. Or send us an email.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations – For an Appointment, Call 530-214-8700

Truckee Office
10280 Donner Pass Road
Truckee, CA 96161

Phone: 530-214-8700
Fax: 530-214-8158
Truckee Law Office Map

Sacramento Office
1830 15th Street
Suite 100
Sacramento, CA 95811

Phone: 530-214-8700
Fax: 916-848-3500
Map & Directions

Reno Office
527 S. Arlington Avenue
Reno, NV 89509

Phone: 530-214-8700
Fax: 775-201-1444
Map & Directions

South Lake Tahoe/Zephyr Cove
212 Elks Point Road
Suite 553
Zephyr Cove, NV 89448

Phone: 530-214-8700
Fax: 775-201-1444
Map & Directions

Incline Village/Crystal Bay
22 State Highway 28
Crystal Bay, NV 89402

Fax: 775-201-1444
Map & Directions

Truckee High Street Office
10343 High Street
Suite One
Truckee, CA 96161

Fax: 530-587-0707
Map & Directions

Chico Office
2585 Ceanothus Avenue
Suite 178
Chico, CA 95973

Phone: 530-214-8700
Fax: 530-267-3933
Map & Directions