Breaking Up Is Hard To Do: Dissolving A Partnership In Florida
It happens to all of us. You thought you found the right partner, so you took things to the next level and ventured on a new journey together, hoping it would equally benefit both of you. However, things fell apart down the road and you do not see any way that you can continue together in a partnership. In this context, of course, we are talking about business partnerships. If you sense that things are going downhill in the context of your business partnership, you should speak to a business litigation attorney about your options.
Should I Dissolve My Partnership?
There are many reasons an individual would consider dissolving a business partnership, and we cannot make the decision for you. However, there are a few common reasons that could lead to a dissolution of a business partnership.
- A partner wants to retire.
- A partner has lost interest.
- A partner is no longer able to fulfill their duties in the partnership.
- There are fundamental disagreements about how the venture should proceed.
Further, it is important to keep in mind that dissolving a partnership is not the only option you have when you and your partner have a disagreement or feel that either of you is unable to meet your obligations under the partnership. Another option is to shift the weight of the partnership to allow a more capable or willing partner to take the majority of the control without completely eliminating the other partner’s stake in the partnership.
Where To Start
In the event that you are looking to dissolve a partnership, we have compiled a list of steps you should take to ensure that you have a clean break-up and avoid any of the messy fiascos that can cost more resources.
- Take a look at your partnership agreement. An experienced business litigation attorney would have advised you to include a dissolution strategy in the partnership agreement you should have made when you formed your partnership. This strategy should lay out your rights and responsibilities for dissolution.
- Ensure that all duties that you have agreed to are being performed. It is much more difficult to dissolve a partnership if there is unfinished business. Ensure that you and your partners have no further obligations to each other. This also includes any leases or contracts.
- Get a business valuation. Because you and your partners will be splitting assets and liabilities in accordance with your percentage of ownership, you will need a clear financial picture of the value of the business.
- Speak to an attorney. An attorney can review state law for logistics (such as filing requirements and time limits), provide you with the proper forms to dissolve the partnership, advise you on next steps for dissolution, and counsel you during the process.
If you need to dissolve a partnership, an experienced and skilled attorney can help you through the process. In Florida, the West Palm Beach business litigation attorneys with Pike & Lustig, LLP are more than capable of helping you dissolve a partnership, even if your circumstances are not ideal. Contact us immediately for the help you need.