In case you are sharing a good relationship with your partner, then you will feel that a partnership agreement is not needed. But this can be challenging at the time of leaving the partnership.
When you are thinking of leaving a partnership, it is always good to consult with a Business Litigation Lawyer. At the time of winding down a partnership, there are a bunch of things that you need to address.
You will always want to make sure that you are getting the proper share. So you need to consult with a litigation lawyer in Florida.
Steps To Dissolve Your Business Partnership
Here are the steps of the process of dissolving a partnership.
1. Review Written Agreements
In case you have any partnership agreement, the very first thing that you need to do is go through the agreement and look for any terms that establish for dissolution. You need to understand it properly.
In order to determine if any of the written agreements between you and your partner is saying anything about dissolution, review them all. You are also required to gather all leases, contracts, mortgages, promissory notes, account statements, and also any other agreements between you and your partner.
2. Consult A Business Litigation Lawyer
A expert in Business Law Townsville tells us that once you are done with collecting all the documents, it is time to consult with a business litigation lawyer. Your lawyer will assist you in developing a strategy to dissolve the partnership.
The professional person will also make sure that all your interests are protected properly. You also need to think of a way to address the matter of leaving a partnership with your partners. A lawyer will help you with that.
From dissolving shares to filing in the paperwork with your bank and other vendors, a business litigation lawyer will be able to help you with all this and much more. If you are on the lookout for one of the best business law firms out there, read more.
3. With Your Partners Discuss Dissolution
When you have decided to leave any partnership, you need to let your business partner know about the intention you are having. A partnership meeting is definitely a good idea. And especially if you are sharing a good relationship with your partner, it will be excellent.
But if leaving the partnership has different reasons, like some serious conflicts, between you and your partner. It will be best to let your lawyer handle those things and communicate with your partner.
According to legal experts at James Berry & Associates, it is a good idea to let your lawyers handle all the negotiations and communications. If you have been working with someone for a long time, you can get emotional during tough discussions. This might lead to a situation where you end up losing a lot. Allowing your lawyers to handle discussions would be the rational and wise thing to do
4. Negotiate A Separation Agreement
When you have a partnership agreement, that will cover most of the terms of separation. Still, it is always a good idea to choose a negotiation of the separation agreement that will more specifically define some things.
It includes when and how all the assets will be delivered, and other obligations will be paid. And for dissolving a partnership without an agreement, you need to negotiate all the terms of separation.
5. Address Unresolved Matters In Court
In case you failed to reach an agreement regarding all the important terms of dissolution, there is always an option for you. And that is taking the matter to court. Any kind of allegation against a partner, which may be affecting the propriety of dissolution or any other interests, will be accepted by the court.
And this allegations may be,
- Criminal behavior.
- Breach of fiduciary duties.
- Breach of contract.
6. Wind Up The Partnership
Just after the finalization of the separation agreement, you and your partner need to take the steps in order to fulfill the terms. And this may include,
- Paying off debts.
- Distributing or selling assets.
- Refinancing assets.
- Paying agreed-on buyout amounts or distributing partnership funds.
- Paying taxes.
- Renegotiate contracts.
7. Notify Everyone
At the time of leaving any business partnership, you need to notify your leaving to suppliers, creditors, clients, and any other person with whom you do business.
By giving notices to others that you are no longer a part of the business will help you to be protected from future liabilities.
This is the proper way to dissolve a business partnership. A business litigation lawyer will always make this hectic task easier for you. And everything will be done in a legal and correct way. So, it will be a good idea to hire one, when it is needed.