Nothing in this article should be construed as legal advice.

Dissolution of a partnership can be triggered by the provisions of a partnership agreement or, in some cases, by the desires of one or more partners. A well drafted partnership agreement will lay out the circumstances which can trigger a dissolution, and will provide the procedures to follow. A partnership that was formed without a written agreement, or without sufficient detail about dissolution, may cause some uncertainty about the proper methods to be implemented in dissolving and the winding up of the partnership. Whether or not there is a written agreement, and whether or not the parties are contesting any issues, a partnership dissolution agreement is a prudent course of action. The agreement replaces the earlier partnership agreement and will prevent litigation over any of the provisions of the original agreement.

Dissolutions may be a congenial process resulting from the operation of the governing agreement, or by the mutual desires to move in different directions. On the other hand, dissolution can by a protracted process which involves personal motivations, on top of business considerations. Negotiating a clean dissolution and winding up, based on the prior agreements and interests of all parties involved, may often be in the best interests of all parties, when possible.

If you are interested in dissolving a partnership, please contact us.