Business divorce involves resolving disputes among co-owners of privately owned companies, including corporations, partnerships and limited liability companies.
Some examples: majority business owners fires a minority member manager of the business. The employee/member sues claiming majority owner breached his fiduciary duty toward her business partner. The majority owner counterclaims, alleging. Such litigation can be distracting and costly.
Similar to a divorce between husband and wife, business partners often reach a breaking point where they can no longer live together. Unable to resolve their own disputes, the co-owners need someone to divide up the corporate assets.
Untangling the ownership of a business can be more or less complicated than the typical marital divorce. Many emotional issues, often with greater financial, tax, liability, and accounting implications, are involved in a business divorce.
The attorneys at Weltman & Moskowitz, LLP, have the experience to protect our clients’ financial interest while remaining sensitive to the emotional issues. For the business owner involved in a contentious corporate separation with a partner, shareholder or member or a family business dispute, we offer a clear route away from a traffic wreck of a destructive and debilitating relationship.
Because disputes among business partners are so commonplace and because litigation is expensive and can jeopardize the operations and value of a business, we encourage including compulsory mediation provisions in shareholder, partnership and operating agreements. Mediation and arbitration, if used appropriately, can be a more private, economical and efficient way of resolving business divorce issues. At the same time, business partners are encouraged to agree in advance on a method or outside expert for purposes of business valuation. Sometimes, however, litigation and forensic valuation are necessary in order to reach strategic goals.
Whether the business dispute involves a New York or New Jersey company or co-owner, the lawyers of Weltman & Moskowitz, LLP understand what can and cannot be accomplished by litigation and alternate dispute resolution methods.
We know the applicable statutory laws and case developments. We understand accounting basics and valuation methodology. We are well equipped to know that often hidden financial issues need to be investigated and how to bring these forward to our client’s advantage.
For further information on this topic or to discuss your case, please contact Richard E. Weltman or Michael L. Moskowitz by telephone, fax or email.