Dynamic Solutions in Conflict Management and Dispute Resolution Services

3 tips for handling partnership disputes

On Behalf of | Jan 3, 2023 | Alternative Dispute Resolution

Partnerships are based on the owners being able to work as a team to make decisions for the company. The business can suffer when those owners can’t agree on what needs to happen.

One of the best things you can do if you’re forming a partnership is to have a comprehensive agreement that outlines everything related to the partnership. The owners can turn to that agreement for information when something goes awry.

Try to keep the dispute out of the public eye

Try to handle the partnership dispute behind closed doors. Knowing that the owners disagree can lead to employees and customers thinking of the company as unstable, which can harm its overall image.

Be willing to listen and compromise

Actively listening and realizing that there’s likely more than one resolution is beneficial. You should listen to each option and honestly consider how it may help or harm the business. If one partner is more knowledgeable about the matter at hand, consider their experience and how it applies to this situation.

Enlist the help of a neutral third party

Having an outside party help with the resolution of the matter is often beneficial. This can be done through mediation or arbitration. Mediation involves a mediator helping the parties to come to an agreement. Arbitration involves the arbitrator hearing the evidence and making a determination about the resolution.

Ultimately, using alternative dispute resolution methods will likely make it easier to resolve the dispute because you have a third party assisting you. Double-check the partnership agreement to determine if there’s a clause that stipulates how you should handle these matters. Be sure you work with someone who understands the circumstances surrounding the dispute.