Steps to take when ending a partnership

On Behalf of | Jul 6, 2020 | Uncategorized

Individuals who enter into business partnerships in Georgia and elsewhere will ideally have written contracts that govern the terms of those relationships. This may prevent relationships from ending or lawsuits from being filed if a partnership is eventually dissolved. Ideally, those who are thinking about ending their business relationships with their partners will want to discuss their concerns with these individuals. Doing so may help to determine how assets and liabilities will be divided as the venture comes to an end.

If only one partner wants to leave the company, the other may be able to buy that person out. A buy/sell agreement may specify how much an owner’s share of the company is worth and the method by which an ownership stake can be transferred to another person. The buy/sell agreement may also allow outside parties to buy a partner’s interest in the company.

In the event that a partnership comes to an end, its exiting creditors must be paid first. It is important to point out that those involved in a partnership can be sued even after the joint venture comes to an end. In some cases, dissolving a partnership may result in a breach of contract, and the breached party may be entitled to damages either from the partnership itself or from an individual partner.

Ideally, business owners who are involved in disputes with partners, creditors or other parties will consider hiring an attorney to represent their interests. An attorney may be able to help put an end to business litigation in a timely manner. This may be done by asking for a summary judgment or by working to negotiate a settlement outside of court. In many cases, settlements may be reached even after a trial date has been set.