Relationships between partners in family businesses are often filled with emotions and tensions, which increases the risk of conflicts between them. In my experience that these conflicts escalate over time because the partners often pretend that nothing is happening for years, and in the name of preserving family ties, they endure silently, viewing themselves as victims who sacrifice their own well-being for the greater good. By doing so, they automatically cast the other party as the one who exploits this sacrifice.

 Frustration that has been suppressed for years tends to erupt much more intensely than among partners who have a more distant relationship, working together based on factors beyond family ties and close emotional bonds. A family business can be likened to a ticking time bomb, with the entire family, employees, and contractors in close proximity. It is never known when it will explode and whether anyone will survive the explosion.

There are several distinct causes of conflicts among partners in family businesses.

The first cause of conflicts can be attributed to differences in approaches to managing the business. It often happens that parents want to run the company in a traditional way, while the younger generation prefers modern solutions. This can lead to conflicts regarding management and decision-making. It is important to realize that this is a manifestation of typical generational differences in perceiving reality, which are accelerated by the rapid pace of technological development and social changes. Given that both money and the future of the family are at stake, each party, driven by good intentions, becomes firmly entrenched in their position, creating the foundation for conflict.

 The second cause of conflicts in family businesses is the difficulty of separating personal life from the business. Family issues often spill over into the company, leading to situations where emotions dictate business decisions. This can lead to conflicts related to power distribution and influence within the business. Conversely, conflicts within the business can also spill over into the “home,” and in such cases, we can be certain that it will return to the company with doubled intensity.

The third cause of conflicts in family businesses is the lack of a succession plan. Often, parents or grandparents may be reluctant to relinquish control of the company, while the younger generation wants to take the reins. This can lead to a situation where there is no clear succession plan, which in turn can result in conflicts and misunderstandings. Additionally, the failure to address these matters in a will and leaving them subject to general inheritance laws can lead to fierce conflicts among heirs, where the object of contention is not just the wealth but the power within the company after the passing of the “senior.” If the deceased has also left a spouse behind, it is easy to imagine the challenging dispute that may arise.

 Another source of friction is the lack of clear division of responsibilities and tasks. In many family businesses, all partners tend to be involved in every aspect, which leads to a situation where no one feels accountable for specific duties. This can result in conflicts related to decision-making and a lack of coordination. Mutual grievances and complaints will find countless opportunities to sour the atmosphere, ultimately leading to a serious conflict between partners.

Lastly, a significant cause of disputes arises from the absence of clear rules regarding profit distribution. It is often the case that in family businesses, the partners do not have a clearly defined distribution of jointly earned profits, which leads to a situation in which one party feels aggrieved. This can lead to conflicts over the distribution of power and influence over companies. This becomes particularly evident when the ‘younger generation’ works for modest compensation, while the older generation accumulates profits within the company, considering that they are no longer driven by financial gain. After all, they have already acquired everything they need.

Conflicts between partners in family businesses can have a negative very impact on the operation of the company and the relationship between business partners. Therefore, it is advisable to seek the help of a lawyer specializing in business and family law, who can help solve problems and prevent the escalation of conflict. A business is built with difficulty and for years. It can be destroyed very easily. On the other hand, nothing justifies living in constant frustration or exploiting economic advantage in family relationships. Any case of this kind requires detailed work with an experienced lawyer who will look at the client and his case as a whole, taking into account the emotional, family, financial and at the very end, of course, legal aspects.