Should I talk to a lawyer before speaking to my business partner about insolvency?

Whether you need legal advice before discussing insolvency with your business partner depends on your relationship, the company structure, and whether there's any risk of conflict or allegations of misconduct. In many cases, speaking to your business partner first is both appropriate and necessary—if you have a trusting, open relationship and you're facing financial difficulties together, having an honest conversation about options may be the first step before seeking professional advice jointly. However, there are several situations where seeking legal or insolvency advice before speaking to your partner is strongly advisable. If you suspect your business partner has been involved in questionable financial conduct—such as withdrawing excessive funds, making preferential payments to themselves or connected parties, or hiding information from you—you need independent advice about your own liability and whether you need to distance yourself formally from such conduct. If your business partner has been making decisions you disagree with and you've been excluded from management despite being a director, you need advice about documenting your concerns and potentially resigning properly to demonstrate you weren't responsible for problematic decisions. If there's any risk that discussing insolvency might lead your partner to take actions that worsen the situation—such as disposing of assets, destroying records, or making preferential payments—you may need advice before raising the subject. If your business partnership has become acrimonious and you no longer trust your partner's judgment or honesty, independent legal advice protects your interests before entering what might become a conflict situation. If you have signed personal guarantees and your partner hasn't, or vice versa, you have different risk exposures that might create conflicts of interest in deciding how to proceed. In such cases, getting advice first helps you understand your rights, duties, and options before engaging in potentially difficult conversations. The advantage of seeking advice first is that you'll enter the conversation with your partner better informed about legal options, director duties, and the consequences of various courses of action, which can make the discussion more productive and ensure you don't inadvertently make statements or agreements that later harm your position. However, the risk is that your partner may view this as secretive or disloyal if they discover you sought advice without telling them, potentially damaging the relationship and trust further. A middle ground might be to propose to your partner that you both urgently seek professional advice together from an insolvency practitioner, framing it as taking responsible joint action rather than one party acting unilaterally. This preserves partnership while ensuring both of you understand your duties and options properly. If your partner refuses or responds defensively to the suggestion of seeking advice together, that itself might be a warning sign that independent legal advice is necessary. Ultimately, the decision depends on your assessment of trust, alignment of interests, and whether there's any indication your partner might act in ways that increase your personal liability. If in doubt, a confidential initial consultation with a solicitor or insolvency practitioner won't commit you to any course of action but will help you understand whether joint or separate advice is more appropriate for your specific circumstances.