How Do I Properly Dissolve A Partnership?

There are several steps that go into dissolving a partnership. One of them is selling all the assets of the business, including land and equipment. Another is paying all the liabilities, including payroll obligations and loans. If there is not enough money to pay for those liabilities, the partners take on those liabilities in proportion to their interest in the business. If there is excess, then you distribute that excess. One thing to keep in mind is that there might be liabilities that arise in the future, whether they are on employment claims or wage claims or other liability. Keeping some money in reserve and designating a person to be in charge of that is important. Notifying all your customers and your vendors and making sure they understand when the operations are going to cease and the business is no longer going to exist is important as well.

Business Partnership Litigation vs. Negotiated Settlement. Which Is Better?

Litigation is typically not a simple process. The cost of litigation can be substantial. The other cost is the time that’s involved. Instead of the business owners thinking about how to offer a better product or increase revenues or have happier employees, they are going to be thinking about the pending litigation. It’s often unknown what a particular judge or a jury will do with a particular set of facts, so there are a lot of items for a partner who is going down this path to consider before they file a lawsuit, whereas a possible amicable resolution may be available, which makes sense to both parties. All options should be considered and litigation should not be rushed into.

What Sets You And Your Firm Apart In Handling Business Partner Disputes?

When we meet with a client, we want to understand their goals. We then work backwards from that end goal. We also try to make sure that those goals are realistic. That guides us in determining a strategy. We have discussions with our clients on an ongoing basis, so we know if their goals have changed. We also try to get a better insight of what the other side might be willing to do, so we have a good understanding of what’s important to them, which might not necessarily be important to our client. There are often situations that are a win-win for all. We want our clients to be involved and have a say in the process.

For more information on Properly Dissolving a Business Partnership, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.