Understanding Arizona Partnership Disputes

Causes Of Disputes Between Business Partners & How To Resolve Them With Legal Counsel

It’s not unusual for one or more entrepreneurs to go into business together, only to discover as time goes on that they have differing objectives, philosophies, and leadership styles, or contradictory visions about how the company should be operated. This may lead to disputes and even separation from each other as business partners.

In other situations, one business partner may find out that the other business partner is overstepping his or her authority or even engaged in white collar crime such as misusing company assets, mismanaging business funds, or embezzlement. These types of violations warrant immediate action with an Avondale business attorney for urgent resolution.

Since business is always a competitive environment, it’s essential for business owners to remain focused on operating and managing their business. A dispute between business partners that becomes drawn out over a long period of time can cause the partners to lose their focus, opening the door for competitors to fill the gap while the partners are preoccupied with their differences. A long dispute that becomes public can permanently damage the reputation of either partner or the business itself, negatively affect employee morale and retainment, as well as turn into an expensive and emotionally draining situation that can even force your business out of operation.

If you are facing a dispute with your Arizona business partner, you need an attorney who has extensive experience in all areas of business law, including franchising and related fields where partnership disputes can be particularly disruptive. Representation from a Chandler franchise lawyer who has the confidence and skills to initiate or defend against litigation and can advise proactive measures in order to prevent future disagreements is crucial to maintain the health and stability of your business.

If you are facing a dispute with your business partner, learn how an Arizona business attorney can propose measures in order to avoid future disagreements.

What Causes Partnership Disputes?

Many types of disagreements, both small and significant, can cause disputes and conflict in a business partnership relationship. Some of the most common reasons why business partners in a dispute may need resolution with their Gilbert business attorney include:

  • Accusations that company assets have been or are being mismanaged
  • Accusations of diverting business assets for personal use, a crime known as embezzlement
  • Accusations of ignoring or misusing business opportunities
  • Disagreements regarding how much compensation the partners or other executives should receive
  • Disagreements arising when one partner adds family members to the business
  • Disagreements over how the business should be managed
  • Differences of opinions regarding business structure, mission, goals, growth patterns, hiring decisions, product selection, and many other aspects of day-to-day business growth

How Can Legal Counsel Help Resolve Business Partner Disputes?

If you recognize that you and your business partner are facing a dispute, contact an experienced Goodyear business attorney to obtain guidance and legal advice. Whenever possible, it’s especially beneficial to begin this process while the dispute is minor. Disputes that are ignored until they become more significant can cause permanent damage to relationships, negatively affecting your employees, financial situation, reputation, or business operation.

A knowledgeable attorney who has a comprehensive understanding of Arizona business law can review the facts of your dispute and work with both parties to resolve the disagreement effectively and professionally. In many cases, skilled attorneys can guide their clients through a successful resolution without the need for litigation or time in court. In cases that involve intellectual property such as trade names, trademarks, copyrights or patents, you will want to work with an Arizona intellectual property lawyer who is adept at leading negotiation and can represent you as a client in third-party mediation or arbitration–or even litigation if that becomes necessary. If needed, your business lawyer should be prepared to advocate for you in court or defend you if you are a victimized business partner who is being forced out of your partnership.

There are many ways that business partner disputes can be resolved, even if the situation seems insurmountable or irreconcilable. A common solution is for one partner to buy out the other partner’s interest in the company, which requires an experienced Paradise Valley business attorney who can skillfully and accurately draw up all of the necessary paperwork for the transaction.

Preventing Business Partner Disputes

Of course, it’s best to preemptively stop partnership disputes from happening by having intentional discussion, plenty of documentation, and careful business formation early in the business partnership process. The most effective way to prevent disputes is by working with an Peoria business attorney who can assist you and your potential new business partners to launch a carefully planned limited liability company (LLC), general partnership, limited liability partnership (LLP), C-corporation, S-corporation, or other type of business formation.

Effective Legal Counsel from Arizona’s Leading Business Attorney Firm

Whether you are just forming a new business or need negotiation through a partnership dispute, the legal team at Denton Peterson Dunn would welcome the opportunity to review your situation and recommend an effective course of action that will satisfy all involved parties. Since 1995, we have been providing quality legal services in all areas of business law with an emphasis on personal and responsive representation for all of our clients. Schedule your case review today!


Brad Denton, Business Lawyer
 – Denton Peterson Dunn

1930 N Arboleda #200
Mesa, AZ 85213

Office: 480-660-3249
Email: [email protected]
Website: https://arizonabusinesslawyeraz.com

7272 E Indian School Rd #540-132
Scottsdale, AZ 85251

Phone: 480-690-3283
Email: [email protected]