Your Partnership goes belly up - What now?

Your partnership may have come to an end because:

1. The term stated in the agreement has expired;
2. One partner wants to exit the business and has given written notice;
3. A partner has passed away;
4. There is a court order, or the business has gone insolvent.

 Bankruptcy, death or change

A partnership will be dissolved from the moment that one partner dies or goes bankrupt. It can also be brought to an end if one partner’s debt interferes with the partnership property and what the other partners are entitled to.  

Court order

A court can order the dissolution of a partnership where a partner may have become incapacitated or lost their mental capacity to operate the business. The Court can also order the dissolution when the business can only be carried out at a loss, or where one partner has willfully or persistently breached the partnership agreement so that it is not reasonable that the business be carried on together. 

If you have further questions, please contact frank@franklaw.com.au

This is not legal advice.