I Want Out of My Business Partnership in Florida—What are My Options?
Are you seeking an exit from your business partnership in Florida? The complexities surrounding partnership dissolutions require careful consideration of available options. Here, our West Palm Beach partnership lawyer explores the various avenues available to individuals looking to sever ties with their business partners in Florida.
Step #1: Thoroughly Review Your Partnership Agreement
Before making any decisions or taking any action, it is vital that you thoroughly review the partnership agreement. Ultimately, it is your partnership agreement that largely governs that relationship between you and your business partners. In many partnership agreements, there are clauses outlining key issues like:
- How disputes should be resolved;
- How a partner can exit the business; and
- How assets should be divided.
Step #2: Consider Options for a Collaborative Solution (Buy-Out)
If you are looking to exit the partnership amicably, one of the options you can consider is proposing a buy-out to your partner(s). In most cases, this type of arrangement would involve you selling your share of the business to them. It’s important to have an open and honest dialogue with your partner(s) about your intentions and reasons for wanting to exit. Engage a neutral third party, like a mediator or a business valuation expert, to determine a fair price for your share.
Step #3: Prepare to Force Dissolution of the Partnership
If a collaborative solution is not viable, you may have to take the route of forcing a dissolution of the partnership. Of course, trying to force your way out of a partnership through a dissolution of the business is a more aggressive approach and should be handled carefully. According to Florida statutes, a partner can petition the court for dissolution if it is not “reasonably practicable” to continue the partnership. Keep in mind that this approach can be lengthy and costly, so it’s important to consult with an attorney and weigh the costs and benefits before proceeding.
Step #4: Be Sure to Tie Up All Loose Ends (Pay Debts, Distribute Assets, etc)
Finally, once you have decided on the method of exiting the partnership, it is important to ensure that all the financial affairs of the business are settled. Along with other things, this includes paying off any debts, settling any outstanding obligations, and distributing the remaining assets among the partners according to the partnership agreement or a court’s decision.
It is wise to maintain clear records throughout this process. If you have employees, make sure that their compensation and benefits are handled properly. You should also file the necessary forms with the state of Florida to officially terminate the partnership. An experienced South Florida partnership dispute lawyer can help you find the most effective solution.
Set Up a Confidential Case Review With a West Palm Beach Partnership Dispute Lawyer
At Pike & Lustig, LLP, our Florida commercial dispute attorneys have extensive experience handling partnership law matters. If you want to get out of your business partnership, we are here to help you find the best path forward. Contact us today for a completely private, no obligation initial consultation. We handle partnership law disputes all throughout Southeast Florida.