Dissolving a Partnership
Partnership dissolution can sometimes prove to be a bit of a challenge, particularly for those who haven’t managed to set up a partnership agreement.
Ralli Partnership Law provides expert legal support to those dissolving a partnership. Whether you have a partnership deed, no separate agreement or have set up a limited liability partnership, we can guide you through the process so that all financial and legal considerations are covered.
How to dissolve a partnership
Dissolving a partnership is sometimes possible through serving a dissolution notice, where one partner notifies the other(s) of their intentions. A dissolution notice should be clear and unambiguous, and should state the date on which the partnership is to be dissolved.
When partnership dissolution does occur for whatever reason, there are a number of issues relating to partnership law that must be considered. These include:
- How are the assets divided up?
- Who is responsible for the liabilities?
- Who gets the name?
- What happens to Work in Progress (WIP)?
- Who gets the customer / client lists?
- What happens to the employees?
- What happens to partnership property?
- Who prepares the final accounts?
- Who pays for Continuing Professional Indemnity Insurance (if applicable)?
- How will any partnership tax issues or outstanding debts be resolved?
Having a separate partnership agreement in place that deals with issues related to dissolving a business partnership will enable the process to remain clear-cut. Without a deed to cover all the above eventualities, disputes can arise during partnership dissolution that can cost you dearly.
Dissolving a partnership without an agreement
Partnership dissolution can occur because the partners have decided to go their own way, or because a partnership set up for a fixed time has run its course.
However, it can also occur because there is no partnership agreement and one of the partners wants to leave, or other partners want to expel him or her. Without a deed in place, dissolution can also automatically occur when one partners dies or is made bankrupt, where the remaining partners can choose to either wind up or reform their business venture.
When dissolving a partnership without a separate deed, the default position is that assets and liabilities are split equally. As this can often lead to disagreements between partners, our solicitors can help to mediate and resolve issues so you don’t have to resort to a costly and time-consuming court-dictated decision.
How Ralli helps in partnership dissolution
Ralli Partnership Law has extensive experience in providing legal support to those dissolving or winding up a partnership. If youâ€™re thinking of ending or exiting your partnership, before you serve a notice of dissolution or take any action, talk to one of our solicitors to discuss your options.
Through enlisting our legal services during this challenging time, you can remain fully prepared without incurring any unwelcome debts or damaging consequences. The committed solicitors will also assist in cases of partnership dissolution caused by death, bankruptcy or expiry.
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