Business Divorce / Partnership Separation

State partnership and LLC statutes provide default rules for dissolution and buyout when the governing agreement is silent, though those defaults are often less favorable than a negotiated resolution.

Often yes, especially early in the dispute. We work to structure an interim arrangement that keeps the business running while the underlying separation is negotiated or litigated.

Valuation typically considers the business's assets, earnings, and the specific method set out in the operating agreement. Where the agreement is silent, courts apply default valuation approaches under state law.

Being excluded from management decisions or profits you're entitled to can support a claim for breach of fiduciary duty or breach of the operating agreement, and often warrants prompt legal action to protect your interest.

No, many separations resolve through negotiated buyouts once each side understands the value of their interest and the alternative cost of litigation.

When business owners split up, the outcome depends on the company’s governing documents, ownership percentages, and the conduct of the parties involved. Common resolutions include negotiated buyouts, court ordered dissolution, appointment of a receiver, or litigation to recover damages caused by misconduct or unfair treatment.

Minority shareholders are not powerless if the majority attempts to push them out of the business. Courts may intervene when majority owners engage in oppressive conduct such as firing a minority shareholder, stripping voting rights, demoting roles, removing perks, or forcing a below-market buyout of shares or unvested stock options. If the majority acts to unfairly deprive a minority owner of the value of their shares or control interest, legal remedies may be available to protect those rights or secure fair compensation.

Deadlock occurs when owners with equal or opposing control can no longer make decisions necessary to run the business. When this happens, courts may step in to resolve the dispute through remedies such as appointing a neutral manager, ordering a forced buyout, or dissolving the business if continued operation is no longer feasible.

You should contact a Business Divorce attorney as soon as disputes begin to threaten your ownership, voting rights, or financial interest in the business. Early legal intervention can help preserve evidence, challenge improper votes or governance changes, and prevent the majority from taking irreversible actions that diminish your rights or the value of your shares.

A business divorce occurs when business partners, shareholders, or LLC members can no longer operate the business together and must legally separate their interests. These disputes often involve ownership control, financial misconduct, or breaches of fiduciary duty and may require a forced buyout, court intervention, or dissolution of the business.