Making the decision to end a partnership can often be an extremely difficult one, which will be highly disappointing to those involved. However, ending a partnership is sometimes the only viable option left in certain circumstances. In these cases, Ralli Partnership Law can provide guidance on the various methods of bringing your partnership to an end, allowing you to move on with your career.
How to end a partnership
There are a number of different ways a partnership can be ended, with various outcomes and repercussions depending on which route your partnership takes. Our guide to ending a partnership provides helpful information as to the best choice for your partnership.
Dissolving a partnership
Dissolving a partnership can occur for a number of reasons, such as one partner deciding to leave or a fixed length partnership coming to an end. While these reasons can occur occasionally, the most common cause of a partnership dissolving is the failure to have a partnership agreement put in place, as in the absence of an agreement, any party can serve a notice to dissolve a partnership at any time.
Exiting a partnership
For most, the preferable option to the dissolution of a partnership is exiting a partnership under the terms of a partnership agreement. A partnership agreement can help to avoid disputes when ending a partnership, with important factors such as dealing with partnership property and partnership capital clearly stated within the agreement. This determines what ownership a partner has of any financial assets that may remain in the possession of the partnership when the time comes for it to be ended.
Winding up a partnership
Winding up of a partnership is a different concept to dissolution of a partnership. A partnership can undergo a technical; dissolution, which means that whilst the partnership in theory has ended (e.g. because of a partner retiring or the composition of the partnership changing), the business continues as before. A general; dissolution, on the other hand, occurs when a partnership comes to an end and is subsequently wound up. In the winding up of a partnership, the obligations of the partnership are settled as a priority, including the payment to creditors or remaining partners. Ralli Partnership Law can assist with the financial implications of a partnership being wound up, and help partners to determine whether they are able to recover any investment.
Contact Ralli Partnership law for guidance on ending a partnership
However you decide to go about ending a partnership, Ralli Partnership Law can help. Our experienced advisors have dealt with countless cases and advised on a wide range of business partnerships, meaning you can rely on us to guide you through this challenging time.
For further guidance from Ralli Partnership Law call free on 0161 832 6131, or use the contact section on the website to arrange a callback at a time more convenient to you.