Join Now, Pay No Initial Fee

For a limited time only, when you sign an annual contract for Wealth Docx, Business Docx, or Wealth Tracx, we will waive your initial fee.

Business Law

read
Business Law

I Cut, You Choose: Key Considerations in Drafting Deadlock Provisions

by Jennifer L. Villier, JD | Legal Education Faculty, WealthCounsel

Any 50/50 business relationship can be tricky. The possibility of deadlock is real, and often a primary reason for avoiding equal joint ventures. With a properly drafted buy-sell agreement, however, equal owners can protect themselves from conflict and other triggering events that may lead to the sale or dissolution of the business. Deadlock provisions, known by a handful of colorful names can be drafted to address any foreseeable dispute between owners. While death, divorce, disability, and other circumstances can trigger a buyout, this article focuses on owner stalemate.

There are several issues the attorney should consider when drafting the deadlock provisions. Read this brief to learn what they are and help your clients avoid headaches later.


Complete the form to get your free guide

Related Resources

Screen Shot 2019 06 07 at 11 05 09 AM
read
Business Law

shA House Divided: Deadlock in a 50-50 Partnership

Read about the destructive consequences that can emerge if a partnership agreement lacks provisions for resolving such an impasse and learn what you can do to help your business clients avoid this type of situation by reading, “A House Divided: Deadlock in a 50-50 Partnership.”

Learn More
Say no to phantom income thumbnail
read
Business Law

A Partnership Distribution Menu: Just Say No To Phantom Income

No tax advisor wants to have to tell his or her clients that they owe a tax without receiving a corresponding amount of cash to pay it. Such cashless income is often referred to as "phantom" or "dry" income. Unfortunately for taxpayers investing in tax partnerships, phantom income issues frequently arise.

Learn More

Get the Premier Magazine for Industry Thought Leaders