Stradling Yocca Carlson & Rauth

Business divorce is a broad and complex topic, particularly given human nature. Most times, no one wants to talk about a failed relationship – particularly when the business partners are friends or family members who choose to separate for personal or financial reasons. Business divorce can be unpleasant at best and downright hostile at worst.

In fact, we have seen hostile business divorces that make a marital divorce from a spouse look easy. Conversely, we have navigated our clients through business separations that were peaceful and conserved our clients’ valuable time and resources. Most business divorces fall somewhere in between and involve some contention that can be balanced and managed with the right legal advice, careful negotiation, and diplomacy.

Like a marriage, business entities face interpersonal conflicts. For example, co-owners may no longer like each other and fundamentally disagree on the direction of the business. Or one of the owners may believe that he or she does far more work than the other owner(s). Regardless of the scenario – and we have pretty much seen it all over decades of untangling clients from business relationships – devising the right approach to problem-solving will make or break your position.

This blog serves as a resource for those looking to understand the process of business divorce or , thinking about initiating a business divorce, as well as a some of the issues and unexpected roadblocks that might occur in the process. In addition to providing tips and general information, we will reveal real-world case studies from our practice that uncover some pitfalls associated with business divorce and how to avoid mistakes while also leveraging your position throughout the separation process.

One things is clear when seeking a business divorce… experience is everything. Hiring the right legal counsel is usually an essential component of achieving the right result. Business divorce is a highly specialized legal discipline within the macro practice of commercial law that demands both acute experience and multi-dimensional perspective.

Stradling delivers this unique capability. We look forward to sharing our wisdom and tips with you as you begin the process of unwinding your business and untangling yourself from an unwanted or expired business arrangement.