There are many important issues in a San Diego partnership dispute. The most common issue between business partners is money. In other cases there may be concerns about the contributions of a partner (when compared to others) or the underlying business may have grown beyond a partner’s skills set. Underneath many partnership disputes is a personal or family relationship which can affect others including spouses, family members or a circle of friends. How can you resolve the important issues in a San Diego partnership dispute or prevent one from happening in the first place?
Almost every partnership dispute can be traced back to the original partnership agreement (or lack thereof). Every partnership should have a written partnership agreement. Boilerplate downloaded forms found online will not sufficiently cover your unique circumstances. Effective partnership agreements should not only cover the relationship between the parties, the enterprise at hand and how each partner will contribute to make the effort a success. Sound partnership agreements anticipate best and worst case scenarios. What happens if the business is a tremendous success and new players need to be brought in to manage the situation? What happens in the event of the incapacity or death of a partner?
The Watkins Firm has helped to resolve partnership disputes in San Diego for decades. After years of extensive experience in these cases, we can tell you most disputes are affected by or the direct result of a poorly crafted partnership agreement. There must be a clear agreement from the outset which defines “income” or “profit” and how those funds are to be distributed and when. A sound partnership agreement should establish decision making authorities, ownership shares, salaries or distributions and approvals required for expenditures.
When a dispute arises the partnership agreement is the primary controlling document. When this important agreement is poorly crafted or fails to fully anticipate or speak to the dispute at hand our attorneys take a unique approach to disputes designed to resolve the important issues in a San Diego partnership dispute in a timely and cost-effective manner. If you are concerned about a partnership dispute we invite you to contact the Watkins Firm or call 858-535-1511 for a free consultation.