Voluntary Partnership Dissolution and Disputes
A partnership dissolution is a term used to refer to the termination of a partnership. Broadly speaking, partnership dissolutions fit into two categories: Voluntary dissolution and involuntary dissolution. An involuntary dissolution occurs when a court forces a sale to resolve a deadlock dispute. In contrast, a voluntary dissolution occurs when the partners agree to end the business.
Even if all partners agree that it is time to seek a voluntary dissolution, disputes can still arise while business operations are winding down. Here, our West Palm Beach partnership dispute lawyers highlight three key things you should know if you are involved in a dispute over the voluntary dissolution of a partnership.
- A Partnership Agreement Still Comes First
In Florida, a partnership agreement is the fundamental basis of the legal relationship between members of a general partnership, limited partnership (LP), or limited liability partnership (LLP). If you are involved in a disagreement about how exactly to go about dissolving the business, you should always start by referring to any existing written partnership agreement. The agreement may include instructions/procedures for partnership dissolution, dispute resolution, or another material issue.
- Partners Should File the Dissolution Paperwork, Follow Proper Procedures
There are certain steps you need to take to dissolve a partnership. Business partners involved in a dispute over a voluntary dissolution should still ensure that they are filing the proper paperwork and following the appropriate procedures set forth by Florida law. Among other things, this includes filing dissolution paperwork with the state. Under Florida Statutes § 620.8805, any partner may file the official statement of dissolution.
Beyond preparing partnership dissolution paperwork, it is also important that you fulfill your outstanding obligations to customers, suppliers, creditors, and any other outside parties. If you fail to do so, these businesses could take legal action against your partnership. In the worst case scenario, a customer, supplier, or creditor may even try to hold the business partners personally liable for damage related to an improper business dissolution.
- A Lawyer Will Protect Your Personal Financial Interests
Even when you and your partner(s) are already on the same page that the business should be dissolved, there are still a number of different complex issues that must be addressed. Perhaps no issue is more rife for conflict than the distribution of the remaining money, property, and assets. It is not uncommon for disputes to arise over who exactly gets what. A Florida partnership dispute attorney who has experience handling business dissolutions can help you wind down business in a manner that best protects your personal financial interests.
Schedule a Confidential Consultation With a Partnership Law Attorney in South Florida
At Pike & Lustig, LLP, our Florida partnership law attorneys are reliable, results-oriented advocates for business owners and entrepreneurs. If you are locked in a dispute over a voluntary partnership dissolution, we are here to help. Call us now for a confidential initial legal consultation. We represent business partners in Palm Beach County, Broward County, Miami-Dade County, and beyond.