Legal Considerations When Going into Business with Family or Friends
January 9, 2025

Starting a business is exciting—but starting one with family or close friends adds an extra layer of trust, enthusiasm, and shared vision. It can also add risk.


At Deppman Law PLC, we often meet clients who enter into business partnerships with loved ones only to discover later that good relationships don’t always guarantee good business outcomes. The key to maintaining both a healthy business and a healthy relationship is clear communication—and proper legal planning.

Here’s what every Vermont entrepreneur should know before launching a business with people they care about.

 

1. Treat It Like a Business—Because It Is One


It’s tempting to assume that a handshake and a shared dream are enough when starting a business with someone you trust. But even the closest relationships can fray under the pressures of ownership, money, and decision-making.

The best way to preserve those personal relationships is to approach the business professionally from the very beginning. That means forming the appropriate legal structure, outlining each person’s role, and addressing key “what if” scenarios while everyone is still on the same page.

 

2. Choose the Right Business Structure


The structure you choose affects everything from taxes and liability to decision-making authority. If you’re forming a business with others, you’ll likely be considering one of the following:


  • Limited Liability Company (LLC)—Offers flexibility and personal liability protection. You can customize roles and responsibilities in the operating agreement.
  • Partnership—Easier to form but comes with shared liability unless limited protections are added.
  • S Corporation—May offer tax advantages but is more complex to set up and maintain.


Each has its pros and cons, and the right fit depends on your goals, risk tolerance, and financial picture. An attorney can help you weigh the options.

 

3. Draft a Detailed Operating or Partnership Agreement


This is the most important legal document for any co-owned business—and often the most overlooked when working with family or friends. A good agreement will clearly spell out:



  • Ownership percentages
  • Capital contributions (Who is putting in what money or resources?)
  • Roles and responsibilities
  • Decision-making authority
  • How profits (and losses) are divided
  • What happens if someone wants out or passes away
  • How disputes are resolved


It may feel uncomfortable to talk through these scenarios at the start, but it’s far more difficult—and costly—to address them later without a written agreement in place.

 

4. Plan for the “What Ifs”


Every business faces bumps in the road. You and your co-owner(s) may not always agree on the direction of the business, hiring decisions, or how to reinvest profits. That’s why it’s so important to build in mechanisms for resolving disagreements before they escalate.


Also think about:


  • Exit strategies—Can one partner buy out the other? On what terms?
  • Divorce or inheritance—What happens to an ownership share if a partner gets divorced or passes away?
  • Disability or loss of capacity—Will there be a buyout or a transfer of management duties?


A little planning now can save your business—and your relationship—later.

 

5. Maintain Boundaries Between Personal and Business Finances


Mixing business and personal finances is one of the fastest ways to create confusion—and legal trouble. Even when working with loved ones, treat the business like a separate entity:


  • Set up a business bank account.
  • Document loans or capital contributions in writing.
  • Pay yourself and your partners through proper channels.
  • Keep clean records for tax and liability purposes.


This helps reinforce professionalism and provides a clear trail if financial questions arise.

 

6. Don’t Skip Legal and Financial Advice


Too often, people assume that involving lawyers or accountants will “complicate” a friendly business venture. In reality, professional guidance ensures you’re setting the business up for success. It helps you prevent problems—rather than clean them up later.


Protect the Business and the Relationship—Talk to Deppman Law PLC


Going into business with family or friends can be incredibly rewarding, but it takes careful planning and honest conversations to keep both the business and the relationship strong. At Deppman Law PLC, we help Vermont entrepreneurs navigate the legal steps to set their partnerships up for success. Contact us today to schedule a confidential consultation and learn more.

Avoiding Family Disputes Through Estate Planning

May 11, 2026
One of the most common misconceptions about estate planning is that it is only about deciding who receives your assets after you pass away. While distributing property is certainly an important part of the process, a well-crafted estate plan can serve another equally valuable purpose — helping prevent family disputes. Unfortunately, disagreements among family members are not uncommon after a loved one’s death. Questions about inheritances, decision-making authority, and personal property can quickly create tension, even among close relatives. In some cases, these conflicts can lead to lengthy legal battles that drain both financial resources and family relationships. The good news is that thoughtful estate planning can significantly reduce the likelihood of these disputes and provide clarity during an already difficult time. Create a Clear and Comprehensive Estate Plan One of the leading causes of family conflict is uncertainty. When estate planning documents are outdated or nonexistent, surviving family members are often left to interpret what they believe their loved one would have wanted. A comprehensive estate plan typically includes a will, powers of attorney, advance healthcare directives, and, in some cases, a trust. These documents clearly outline your wishes and establish who is responsible for carrying them out. The more clearly your intentions are documented, the less room there is for confusion, disagreement, or competing interpretations. Keep Your Documents Up to Date Even the best estate plan can create problems if it no longer reflects your current circumstances. Major life events such as marriage, divorce, the birth of a child, the death of a beneficiary, or significant changes in assets should prompt a review of your estate planning documents. Outdated plans can unintentionally exclude loved ones or leave assets to individuals you no longer intend to benefit. Regular reviews help ensure that your plan remains aligned with your wishes and reduces the likelihood of surprises that can trigger family disputes. Choose the Right People for Key Roles Estate planning involves more than deciding who inherits your assets. It also requires selecting individuals to serve in important fiduciary roles, such as executor, trustee, agent under a power of attorney, or healthcare decision-maker. These responsibilities can be demanding and sometimes place family members in difficult positions. When choosing individuals for these roles, consider their reliability, organizational skills, ability to communicate effectively, and willingness to carry out your wishes. Selecting the right person can help prevent misunderstandings and build confidence among family members that your affairs will be handled fairly and responsibly. Be Thoughtful About Unequal Distributions Many people assume that assets must be divided equally among children or other beneficiaries. In reality, there may be valid reasons to leave different amounts to different individuals. However, unequal distributions can sometimes create resentment if family members do not understand the reasoning behind them. If your estate plan includes unequal gifts, consider discussing your intentions with your family or including a written explanation as part of your planning process. While these conversations may feel uncomfortable, they can often prevent misunderstandings and reduce the risk of challenges after your death. Address Family Businesses, Real Estate, and Personal Property Certain assets tend to create more conflict than others. Family businesses, vacation homes, farms, and sentimental personal property often carry emotional value that goes beyond their financial worth. A thoughtful estate plan should address how these assets will be managed, divided, or transferred. Clear instructions can help avoid disputes over ownership, use, maintenance responsibilities, or future sales. Taking the time to plan for these issues now can save your loved ones from difficult decisions later. Consider Using a Trust For some families, a trust can provide additional structure and protection. Trusts can establish clear rules for managing and distributing assets, reduce court involvement, and provide ongoing oversight through a designated trustee. Trusts can be particularly useful in blended families, situations involving minor children, or circumstances where beneficiaries may need assistance managing inherited assets. By clearly outlining how assets should be handled, a trust can reduce opportunities for conflict and help ensure your wishes are followed. Communication Can Make a Difference While estate planning documents are essential, open communication can also play an important role in preventing disputes. Family members are often less likely to challenge decisions when they understand the reasoning behind them. You do not need to disclose every detail of your estate plan, but discussing your general goals and intentions can help manage expectations and reduce the likelihood of surprises. Contact Deppman Law PLC Estate planning is about more than transferring assets—it is about protecting your loved ones and helping preserve family harmony for years to come. A carefully designed estate plan can provide clarity and minimize the risk of costly disputes. If you would like to create or update an estate plan that reflects your wishes and protects your family, contact Deppman Law PLC today . Our team can help you develop a comprehensive plan tailored to your unique circumstances and long-term goals.

What Happens If My Ex Won’t Follow Our Custody Order?

April 14, 2026
Child custody orders are designed to provide structure, stability, and clarity for both parents and children. Unfortunately, even after a custody arrangement has been approved by the court, disputes can still arise. One parent may repeatedly miss exchanges, refuse to follow the parenting schedule, withhold communication, or make important decisions without consulting the other parent as required by the order. If your ex is not complying with a custody order, it is important to understand that the order is legally binding. While occasional misunderstandings can happen, repeated violations should not be ignored. Common Custody Order Violations Custody disputes can take many forms. Some of the most common violations include: Refusing to return a child at the scheduled time Denying court-ordered parenting time Frequently canceling visits without justification Failing to inform the other parent about important medical, educational, or extracurricular matters Making major decisions without the required consent of the other parent Interfering with communication between the child and the other parent Relocating with the child without proper notice or court approval Even when a parent believes they are acting in the child’s best interests, ignoring a court order can create legal consequences. Document the Problem If your ex is not following the custody order, one of the most important things you can do is keep detailed records. Courts rely on evidence, and clear documentation can help demonstrate a pattern of noncompliance. Consider keeping a log that includes: Dates and times of missed exchanges Copies of emails, text messages, or other communications Notes about conversations or incidents Information about any witnesses who observed the violations It is important to remain factual and objective. Detailed records often carry more weight than emotional accusations. Try to Resolve the Issue First Not every custody dispute requires immediate court intervention. In some situations, a direct conversation or written communication can resolve the problem. Misunderstandings, scheduling conflicts, and changes in circumstances sometimes contribute to custody disagreements. When communicating with the other parent, try to remain calm and focused on the child’s needs. Avoid arguments, threats, or inflammatory language, as these communications may later be reviewed by the court. Mediation may also be an option. A neutral mediator can help parents address ongoing conflicts and develop solutions without the expense and stress of litigation. When Court Intervention Becomes Necessary If violations continue despite your efforts to resolve the issue, you may need to seek assistance from the court. Vermont courts take custody orders seriously and have the authority to enforce them. Depending on the circumstances, a parent may file a motion asking the court to: Enforce the existing custody order Require makeup parenting time Hold the noncompliant parent in contempt of court Modify the existing custody arrangement Award attorney’s fees or other appropriate remedies The court will review the evidence and determine whether a violation occurred and what action is appropriate. Avoid Taking Matters Into Your Own Hands When frustrations build, it can be tempting to respond by withholding parenting time or ignoring parts of the custody order yourself. However, doing so can create additional legal problems and may weaken your position if the matter returns to court. Even if you believe the other parent is acting unfairly, it is generally best to continue following the existing order while pursuing legal remedies through the proper channels. Focus on the Best Interests of the Child At the center of every custody dispute is a child who benefits from stability, consistency, and healthy parental relationships whenever possible. Vermont courts evaluate custody issues based on the best interests of the child, and parents who demonstrate a willingness to support those interests are often viewed more favorably. If your ex is not following a custody order, addressing the issue promptly can help protect both your parental rights and your child’s well-being. Contact Deppman Law PLC If you are dealing with ongoing custody order violations or have questions about your rights as a parent, Deppman Law PLC can help. Our team can evaluate your situation, explain your legal options, and guide you through the process of enforcing or modifying a custody order when necessary. Contact Deppman Law PLC today to schedule a consultation and learn how we can help protect your family and your future.