Three Things That Make Partnership Disputes In Family Businesses Different
A dispute between business partners can always create problems. When those business partners are always family members, the matter can be especially fraught. Although there are many similarities to non-family business disputes, there are also some things that make intra-family partnership disputes unique. In this article, our Miami partnership disputes lawyers highlight three key things that make disputes over a family business different.
Why Family Business Disputes in Florida are Different
- The Importance of Preserving Relationships is Heightened
Family is important. One of the risks of entering a family business is that there is more at stake. A disagreement over the current or future operations of the partnership could cause significant damage to your personal relationship. When a dispute arises, family business partners should put a premium on preserving a strong relationship. You do not want a business dispute to become personal. For this reason, family business partnership disputes are often great candidates for mediation or another form of collaborative negotiation. An experienced South Florida business law attorney can help you and your family business partners work towards a solution that protects your financial interests and preserves your personal relationships.
- The Reputation of the Business Should Be Considered
Operating a partnership as a family business offers a value proposition to consumers. A recent report from Forbes Magazine noted that family business branding brings significant intangible value to businesses. The primary reason for this is that consumers inherently trust family businesses to do the right thing. Family-controlled businesses and partnerships are admired and respected as a model for success.
A dispute between family business partners can cause serious problems. It could even, potentially, drive one or more family members out of the business. It is important to remember the reputation of your business partnership needs to be considered. You do not want to let a dispute between family business partners cause any damage to the business, including to its reputation as a family-controlled entity.
- Personal Finances May Be Connected in Some Manner
Finally, it is also important to consider any connection between business finances and personal finances. In most non-family businesses, the partners do not have a direct personal financial connection. Personal finances and business finances can be kept separate. That is not always the case with family business relationships. As an example, imagine a father and son enter a business partnership in South Florida. If the son is the primary heir to his father’s estate, there is a clear personal financial connection. This has to be considered and it puts an additional layer of importance on preserving the value of the business.
Call Our Florida Partnership Lawyer for Immediate Help
At Pike & Lustig, LLP, our Florida commercial law attorneys have deep experience handling partnership disputes. If you are locked in a partnership dispute over a family business, we are here to help. Give us a call today to arrange a fully private initial case evaluation. From our offices in Miami and West Palm Beach, our attorneys represent business owners throughout South Florida.
Resource:
forbes.com/sites/francoisbotha/2018/07/24/why-branding-as-a-family-owned-business-puts-you-ahead-of-the-pack/
