Dissolving a Partnership
If you have decided you wish to dissolve your partnership we can help.
You may have decided to go your own way, perhaps the partnership was set up for a fixed time has run its course. Maybe there is no partnership agreement and one of the partners wants to leave or you wish to expel another.
Where there is no partnership agreement, a dissolution will automatically occur (when one of the partners dies or is made bankrupt).
Dissolution in the context of a partnership is not the same thing as the winding up of the partnership. If a partnership is dissolved (particularly if one partner has decided to retire) the other partners may decide to continue the partnership and the business is not wound up. This is known as a ‘technical dissolution.’
If the partners decide to wind the partnership up completely and the partnership comes to an end, this is known as a ‘general dissolution.’ In the event of a general dissolution, there are a number of issues relating to partnership law that must be considered, including:
• How are the assets divided up?
• Who is responsible for the liabilities?
• Who gets the name?
• What happens to Work in Progress (WIP)?
• Who gets the customer / client lists?
• What happens to the employees?
• Who prepares the final accounts?
• Who pays for Continuing Professional Indemnity Insurance (if applicable)
What can we provide?
If a dispute arises our team can provide advice on resolving the matter by agreement or by litigation, arbitration, alternative dispute resolution or other means.
For help and assistance on queries relating to dissolving a partnership, contact our Partnership team on 0161 832 6131 or get in touch by filling out one of our online enquiry forms.