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What are your options for resolving a partnership dispute?

On Behalf of | Nov 3, 2022 | Business Litigation |

Starting a Washington business with someone else is often rewarding. However, it’s possible for disputes to arise between you. There are several ways you can resolve a partnership dispute in addition to going to court.

Partnership agreement

If you already had an agreement that was drafted before the partnership dispute arose, you’re in good shape. This is a legal contract that gives business partners the opportunity to resolve problems before they occur. Because you already made an agreement, things might be amicable and easy to settle.

Buy out the partner

Unfortunately, even if you have a partnership agreement, certain disputes could be bigger than what you envisioned. There may be hard feelings and things can get personal. If this is the case and things turn ugly, you have the option of buying out the partner. This allows one partner to bow out while the business can continue operating.

Sell the business

You can also choose to sell the business to new owners to settle your partnership dispute. If it’s impossible to continue running things, the partners can look for prospective new buyers and find the best candidate to sell to. However, that doesn’t mean you have to look far; you can consider selling the business to employees already working for the company.


Mediation is often a good method for settling a partnership dispute. You and your partner meet with a mediator who hears both sides to help you reach an agreement that works for both of you. Remember that the mediator’s role is to be neutral in assisting you in reaching a conclusion that you both can live with and move on with your business.