3 Causes of Partnership Disputes

When most of us start our businesses, it is with people we deeply trust, often with family members or best friends. But despite these rock-solid relationships and the best of intentions, disagreements can occur.

Some disagreements are minor and are usually resolved with a few conversations and compromises. However, there are always those disputes that threaten the existence of the company itself.

While each partnership is unique, these are some of the most common causes of disputes, including:

An Imbalance of Workload

Much like the group projects we did in school, there is always the chance that an entire business is solely riding on one person’s hard work. While this works for a short time, it can cause huge problems and differences between partners eventually.

A partnership is meant to be a collaborative effort toward common goals. But if one or more partners are not pulling their weight, it can affect the entire business negatively and can make other hardworking partners feel stressed out and affect the partnership adversely.

Financial Disputes

These are one of the most common and destructive causes of partnership disputes. A business is meant to be profitable, but this profit is supposed to be shared equitably. Financial disputes, however, are of various kinds.

This can be small disagreements of capital allocation or something as big as monetary fraud by a partner. Sometimes financial disputes also occur along with an imbalance of workload when one partner may feel that they’re not being compensated adequately for their excessive workload.

Dispute Over Authority and Decision-Making

While the decision to go into partnership may have come from both parties, the decisions that follow may not go as smoothly. Even the oldest of partnerships often fall through due to authority disputes. Partners may not always see eye to eye and question each other’s authority that can result in overstepping respectable boundaries set previously.

Additionally, partners may not agree on company objectives at some point, and that would also bring about an authority dispute where one partner wants to go through with a pathway that the other disagrees with. As a result, the company may suffer as well.

Partnership disputes are very common and can’t be taken lightly as a lot is at stake for everyone involved. If you’re caught up in a partnership dispute, we can help lower the stress by assisting you in reaching an agreement while strengthening your case and claims.

Get in touch with us at the Wembley Solicitors to settle your partnership disputes in Wembley.