Filled with hope, individuals form partnerships with other individuals in the same line of business, believing that two heads are better than one. However, the reality is that most partnerships and businesses fail, often necessitating legal dissolution which can be quite contentious.

Partnership Dissolution Mediation: The Basics

Dissolution of a business or partnership is a complex affair, and isn’t usually something that can be done without some level of conflict. Both parties have different ideas of what’s fair, and without a neutral third-party to help facilitate the matter, disputes can put a halt to the entire process. To give yourselves the best chance at a successful and agreeable resolution in such a situation, you should always consider mediation.

People may have different explanations as to why a business relationship ended, and they may not want to admit to the role they played. A mediator, on the other hand, is a neutral and objective individual—versed in business law—who can look at all the facts in black and white and help the parties come to a resolution which is mutually beneficial and avoids the expense of trial.

Mediation involving dissolution can be a taxing process. This is because there are many aspects of the business which must be ironed out, such as what happens to joint assets, who takes the majority share of the losses, and who will have to take care of any taxes and employee back pay. Corporate attorneys come into play here, and more often than not, each party will have hired their own legal representatives to minimize any risk and make sure they get what they feel is theirs.

Here are some of the benefits of mediating a partnership dissolution:

• These disputes tend to be resolved quicker through mediation than through litigation. Should you decide that you want to pursue your claim in court, it may end up taking you months or even years to get to a resolution (which may not be in your favor).
• Mediating a partnership dissolution is cathartic and helps you get anything that may have been bothering you off your chest. It thus will help should you decide to reunite with the business partner or start a new venture on your own to do so on a clean emotional slate.
• Partnership dissolution is private, which can help keep prying eyes out of any unsavory parts of your operations, or simply ensure that your competitors don’t gain an edge over the release of information regarding your operations.
• Partnership dissolution mediation also tends to be far less-expensive and less time-consuming than litigation.
• Partnership dissolution mediation can also help preserve any partnerships, given the fact that it is collaborative. In fact, it is not uncommon for two parties to reach an agreement which will allow them to work together in some capacity and not have to sever all ties with each other.

Dissolving a partnership doesn’t have to be fraught with tension and animosity. Please get in touch with Dallas mediator Jeff Rasansky at (214) 275-5333 and learn how we can help.