Almost all partnerships in Georgia start with great enthusiasm. However, different experiences and visions among partners lead to divergent perspectives that often end in conflict. If this happens to you, it’s best to deal with your disagreements as soon as possible in an amicable way because it can greatly derail your business.
When business disputes arise, ordinarily, the parties should have a sit-down and discuss their issues openly without involving a third party. Sometimes, a lack of proper communication may be the root of all your problems and taking the time to listen and understand the view of your partners can help immensely. If you’re still not seeing eye to eye after some honest discussion, it may be best to try other options.
Mediation may be a good option if you’re looking for a more collaborative approach to resolving your differences. In this process, both sides meet with a mediator who will help facilitate discussion and try to come to a resolution that everyone can agree on.
Arbitration is a process where both sides present their case to an arbitrator, who will then decide on the outcome of the dispute. The benefit of arbitration is that it can be less expensive and time-consuming than going to court, but it’s important to note that the arbitrator’s decision is binding, so you won’t have any recourse if you disagree with it.
If all else fails, you may have to consider litigation. This is usually a last resort because it can be expensive, time-consuming and stressful, but sometimes it may be the only way to deal with the issue.
Before you give up on rebuilding a good working relationship with your partners, try to explore all options available to you. However, if the partnership dispute is serious enough and nothing seems to work, you can terminate the partnership and distribute your assets as per the terms set forth in your partnership agreement (if you have one). This is a big decision that you should not take lightly – there are significant tax implications, and it could end up costing you more money in the long run.