FINRA Arbitrators Dissolve RIA / BD Lacking Operating Agreement (BrokeAndBroker.com Blog)
http://www.brokeandbroker.com/3937/finra-dissolution-arbitration/

I often urge clients contemplating a new business to first consider what I call the "Dreaded Ds," which are Death, Disability, Disqualification and Divorce. Those are uncomfortable issues to contemplate but you would be foolish to sign any agreement, enter into any lease, purchase any product or service without first asking yourself some very tough questions. What if you or your business partner drops dead? Did you arrange for Key Man or life insurance? Supposing that your partner is hospitalized and won't be able to get back to work for a month . . . or for several months . . . or will be rendered permanently disabled.  Do you have to continue to pay your partner a full draw or salary -- and what if the tables are turned? What happens if the continuation of the business is solely or largely dependent upon you? If you work on Wall Street and you are suspended or barred, what happens with the biz if you are temporarily or permanently disqualified? Even if the regulators allow you to retain some passive ownership interest, what if your partner says you have to cash out? Finally, if your marriage falls apart, will your spouse be entitled to a share of the business pursuant to a divorce decree? How's that gonna work out if the former spouse wants to come into the office but that prompts open warfare on the premises? Did you draw up a Shareholder Agreement / Buy-Sell Agreement? If not, how the hell do you think you're going to deal with the Dreaded Ds?

Today's BrokeAndBroker.com Blog presents a fabulous FINRA arbitration that wrestles with the fallout when business associates shake hands and launch a new venture. The walls are painted. The signs hung. The furniture arranged. Everything goes wells until it doesn't. Sadly, you and your best pal (at the time you opened the doors) didn't think you had to put stuff in writing. What's the point? We've known each other for years. We're like brothers. We'll make it all up on the fly. You know that feeling when you hear the door lock behind you and realize that you left your keys inside? Imagine that moment and then, think about how relieved you are when you reach for your cellphone to call the locksmith. And, then, hold that thought because you also left the cellphone on the hallway table next to the keys. Hmmm . . . did you turn off the oven? Did you leave the water running in the sink?