The Partnership Agreements That End Friendships

Going into business with someone you trust feels safe — until the money, workload, and vision start pulling in different directions. A well-drafted partnership agreement isn’t just legal paperwork, it’s your peace treaty when things get messy.

Here are the biggest gaps I see that turn partners into opponents:

1. No Clear Roles or Decision-Making Rules
   Without defined authority, every big decision becomes a battle.
   
   

2. Profit Splits Without Expense Splits
   Everyone loves dividing the profit, but fights start when bills arrive.
   
   

3. Exit Terms That Don’t Match Reality
   If one partner wants out, do they get paid immediately, over time, or not at all?
   
   

4. Silent on Buyouts or Death
   Without a plan, the surviving partner may end up in business with the deceased’s family.
   
   

5. No Dispute Resolution Plan
   A built-in mechanism for resolving fights can save months of legal fees.
   
   

The Fix?
Write the rules when everyone’s still on good terms. A strong partnership agreement sets expectations, reduces risk, and can preserve the friendship you started with.

📘 Want yours bulletproof before you sign? [Book a partnership agreement review.]