What exactly is business divorce?

San Francisco business litigation attorney, Bahram Seyedin-Noor, discusses what business divorce is.

Contact Bahram Seyedin-Noor

Phone: (415) 868-5602


I sometimes use the word business divorce to refer to disputes that develop within relatively small private companies. They can be closely held companies; they can be smaller C Corps or limited liability corporations where you have just a handful of individuals who are responsible for the business and running it. And I think resolving those sorts of disputes requires rather specialized knowledge number one because the statutory framework both in Delaware and in California is its unique. And its evolving in terms of the remedies that are available when those individuals running the business are no longer in agreement and want to have what I refer to as a business divorce. That framework is evolving its critical your lawyer is aware of them.

And also, I think it’s very important to understand that there are a lot of different kinds of agreements that govern these sorts of businesses And I’ve seen everything across the gamut from ones that lack any sort of dispute resolution mechanism to those that have a very finely crafted dispute resolution mechanism that selects the choice of forum, the choice of law, and everything in else you need to know before you pursue a dispute. So it’s pretty important that in advising on a business divorce I think it’s important to have done it several times it’s one of the things we do a lot of here in silicon valley and not just startup clients but all kinds of other businesses like financial advisory firms and other kinds of businesses. It’s a relatively specialized toolset I think and it requires a pretty deep knowledge of both the case law and the statutory framework.