Partnership and Family Business “Divorces”

When business partners or family members can no longer work together, the resulting “business divorce” can be every bit as emotional and complex as a marital divorce. For over 40 years, DiTommaso Lubin, P.C. has helped partners and family owners separate their business interests while protecting the value of the company and their legal rights.

We represent partners and co-owners in general partnerships, limited partnerships, LLPs, LLCs treated as partnerships, and family-owned corporations and LLCs.

Common Partnership and Family Business Disputes

Partnership and family business disputes often arise from:

• Disagreements over compensation, distributions, and reinvestment of profits.
• Conflicts between working owners and non-working or passive owners.
• Breakdown in trust over financial transparency, spending, or debt.
• Disputes over management roles, decision-making authority, and succession planning.
• Diverging visions for the future of the business, including whether to sell, expand, or wind down operations.

Family-Owned Businesses in Marital Divorce

When spouses co-own a business and then divorce, the business often becomes one of the most significant marital assets. We work with divorce counsel and financial experts to address issues such as:

• Valuing the business for purposes of the divorce and for any potential buy-out.
• Determining whether one spouse will continue in the business and buy out the other, whether the business will be sold, or whether co-ownership will continue under new governance arrangements.
• Protecting the rights of other family members or partners who may also hold interests in the business.

Valuation, Accounting, and Buy-Out Issues

Partnership and family business divorces frequently involve disputes over what the business is worth and how much one owner should pay to buy out another. We work with forensic accountants and valuation experts to:

• Analyze financial statements, tax returns, and internal records.
• Evaluate compensation, distributions, perks, and related-party transactions.
• Assess the impact of personal goodwill, non-compete agreements, and key-person risks.
• Present or challenge expert testimony on value in negotiation, mediation, arbitration, or trial.

Resolving Business Ownership Divorces

Depending on the circumstances, the best resolution may be:

• A negotiated buy-out or redemption.
• A restructuring of ownership and governance.
• A sale of the business to a third party.
• A winding up and distribution of assets.

We help clients explore these options and, where necessary, pursue litigation to enforce their rights, including claims for breach of partnership or operating agreements, breach of fiduciary duty, and accounting.

Talk With Our Partnership and Family Business Divorce Team

If you are involved in a partnership or family business dispute, or if a marital divorce has put your ownership of a business in question, our attorneys can help you understand your options and develop a strategy.

Contact attorney Peter S. Lubin or attorney James V. DiTommaso for a free consultation.

Call 630-333-0333 or reach us through our online contact form.

This page is for informational purposes only and does not constitute legal advice. Contacting us does not create an attorney–client relationship. Past results do not guarantee a similar outcome.