Grounds for Dissolution Disputes

Dissolution disputes emerge when parties engaged in a partnership cannot concur on the validity or conditions for terminating their relationship. In the business context, disputes may involve issues like breach of contract, insolvency, or failure by one party to fulfill their duties. Personal relationships, such as marriages, face dissolution disputes over reasons like irreconcilable differences or infidelity. Identifying the grounds for dissolution is a critical step in addressing and resolving these disputes.

Common Causes

  • Breach of contract or agreement
  • Financial difficulties or insolvency
  • Failure to meet obligations or performance issues
  • Legal or ethical violations
  • Irreconcilable differences in personal relationships

Asset Distribution Disputes

During the dissolution of a partnership, disputes often arise regarding how shared assets should be divided. These disputes can involve tangible assets, financial investments, or intellectual property in a business setting, and property like real estate or personal belongings in a divorce. The challenge in resolving these disputes lies in achieving a fair valuation and equitable distribution of assets, taking into account the contributions and rights of all parties involved.

Common Causes

  • Disagreement over the value of assets
  • Absence of a prenuptial agreement or explicit partnership contract
  • Concealment or non-disclosure of assets
  • Emotional attachment to specific assets
  • Disparities in financial contributions towards the assets

Liabilities Settlement Disputes

Liabilities settlement disputes revolve around disagreements over the division of debts and financial obligations as parties dissolve their partnership. These may include loans, credit card debts, or any financial liabilities incurred during the partnership. The essence of these disputes is determining each party’s share of responsibility for the debt, taking into consideration their roles, financial contributions, and the origins of the liabilities.

Common Causes

  • Disagreement on the responsibility for debts
  • Personal guarantees on business loans
  • Joint liabilities incurred during the partnership
  • Changes in financial circumstances affecting the ability to pay
  • Disputes over contractual obligations


What is dissolution or termination mediation?

Mediation in the context of dissolution serves as a process where a neutral mediator assists disputing parties in negotiating a settlement. This method is favored for its potential to provide a quicker, less costly, and mutually satisfactory resolution to disputes.

When should you consider mediation for dissolution?

Mediation is advisable when there are substantial disagreements that the parties cannot resolve through direct negotiations, especially concerning asset distribution or liabilities settlement.

Can any dissolution dispute be mediated?

While most disputes can undergo mediation, the process’s success hinges on the parties’ willingness to compromise and find common ground.

How are assets and liabilities typically divided in mediation?

The division is negotiated based on fairness, considering each party’s contributions, financial needs, and future earning potential.

What happens if mediation does not result in an agreement?

If mediation fails, parties may resort to arbitration or litigation, depending on their initial agreement and the applicable laws.

Is a mediated dissolution agreement legally binding?

Yes, a mediation agreement, once formalized in writing and agreed upon by both parties, is enforceable by law.

Can mediation address non-financial issues in dissolution?

Mediation can also tackle non-financial issues, such as custody arrangements in divorces or business transition strategies in commercial dissolutions.