How to End a Partnership Agreement
Sometimes partnerships don't work out as planned because of personality conflicts, differing financial expectations, changes in life circumstances and other unanticipated situations. Dissolving a partnership can be difficult if the original agreement does not have a partnership dissolution clause that specifies financial terms. You may require a mediation strategy if your partnership is in a crisis situation and you cannot communicate with your partner due to interpersonal conflict.
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Instructions
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Analyze your original partnership agreement. Determine whether you have specific clauses in place that define your commitment to the firm in the event of partnership dissolution. Complete your commitments to the firm based on the original agreement. File a statement of cancellation or dissolution with the government agency with which your business was originally registered.
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Hire a lawyer. Get help with asset evaluation and with writing partnership dissolution terms if your original partnership agreement does not account for partnership dissolution. Send a notice for the termination of partnership to your partners.
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Examine any existing contracts with the help of your lawyer. Complete your obligations based on contractual responsibilities in the event of partnership dissolution. Terminate registrations, permits and licenses that are linked to the business. Inform associated stakeholders of the upcoming dissolution, letting them know how they will be affected.
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Sign a partnership dissolution agreement. Have your partners sign the agreement once you have agreed on dissolution terms and the details of how the assets will be distributed. Provide each partner with a copy of the partnership dissolution agreement.
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