Long Island Business Divorce Attorney

A business divorce is the legal termination of a business relationship that’s based on a contract. Business divorces differ from other commercial disputes due to the personal relationships that influence the issues, such as expectations, honesty, time, financial, and energy investments. Customers, reputations, hard assets, and intellectual property are often at risk. Business divorces most often occur between owners, but they may also occur between an employer and a key employee.

When you notice these warning signs, you should consult with a corporate divorce lawyer:

• A General Consensus That a Partner is Not Doing His “Fair Share”
• Conflicting Work Styles or Approaches That are Creating Dissension
• Serious Disagreements about a Business’s Fundamental Characteristics

These red flags often indicate that business partners will soon end their relationship. It is best to speak with a business divorce attorney as soon as possible to ensure you’re aware of all your legal rights and options for your company.

Our goal when representing you is to make the legal termination of your business relationship swift while achieving as many of your goals as possible. This process may involve the following and more:

• Determining the Value of Your Business Assets
• Ensuring Tax Issues are Handled Properly
• Negotiating Terms
• Navigating Outstanding Business Agreements
• Overseeing Employment Law Matters During the Transition
• Working with Private Investigators

Preparing for a business divorce can be a complex and challenging process. It involves separating business assets, resolving financial obligations, and potentially dissolving partnerships or ownership agreements. Here are some steps to consider when preparing for a business divorce:

• Review All Legal Documents
• Seek Legal Advice from Business Attorneys
• Communicate & Negotiate with the Other Business Owners
• Perform a Thorough Financial Assessment
• Create a Detailed Transition Plan
• Protect Intellectual Property Associated with the Business
• Consider Professional Assistance from a Third-Party Mediator or Arbitrator
• Ensure All Agreements Are Properly Documented & Legally Binding

After a business divorce, several outcomes can occur depending on the circumstances. Here are some common scenarios that may happen to a business after a business divorce:

• Dissolution – In some cases, the business may be dissolved entirely. This means that the company ceases operations, assets are liquidated, and any remaining debts are settled.
• Buyout – If one partner or a group of partners decides to continue the business, they may negotiate a buyout agreement with the departing partner or partners. The remaining business owners will acquire the departing partner’s share of the business, usually through a financial agreement outlining the buyout's terms and conditions.
• Restructuring – When the business can still thrive without one or more partners, a restructuring may occur. This can involve redistributing responsibilities, altering ownership percentages, or bringing in new partners or investors to fill the gaps left by the departing parties.
• Rebranding – In some cases, the business may undergo a rebranding process to distance itself from the previous partnership. This typically involves changing the name, logo, marketing strategies, or even the business’s core identity to reflect a fresh start.
• Legal Disputes – Business divorces can sometimes lead to legal disputes and litigation if there is a disagreement over the division of assets, intellectual property rights, or breach of contract issues. These disputes can prolong the process and may require resolution through mediation or court proceedings.