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Want Out Of A Partnership? Here’s How To Do It

Jul 30, 2021

How To Get Out Of A Business Partnership

When businesspeople enter into a partnership, they don’t stop to think that problems could develop later on. Unfortunately, these situations happen many times, and in most cases, require legal intervention to make sure everything is resolved to the satisfaction of all parties. If you find yourself in a partnership dispute and need a commercial litigation attorney San Jose residents know and trust, turn to Nick Heimlich Law.

Review Your Partnership Agreement

When you first entered into your partnership, hopefully, you and your partner had a written agreement that spelled out the specifics. If so, we suggest you look over this agreement at once. In most cases, a formal partnership agreement will contain options for how the partnership can be dissolved. Should you and your partner have no legal agreement in place, you can still try to work out your differences. However, to ensure your rights are protected, we suggest you contact us here at Nick Heimlich Law to speak with an experienced commercial litigation attorney San Jose clients have looked to for sound advice over the years.

Consider A Buyout

When one partner wants to go their separate way, a buyout may be the solution. If you have us look over your partnership agreement, we may find it contains a formula already established. However, should there be no set formula, either of the following may base the buyout price:

  • The liquidated value of the partnership
  • Sale of the business as a going concern

When determining a buyout without a set formula, the determining factor will be the greater financial value of these options. If you or your partner are disputing the value of your business or other factors, turn to us here at Nick Heimlich Law for assistance.

Dissolution

When a mutual agreement or buyout cannot be reached between both parties, we often recommend the dissolution of the partnership. When this occurs, specific steps must be taken by the partners, including:

  • Distributing or liquidating assets
  • Informing creditors and others that partnership is dissolved

Since each of these and other steps must be followed promptly, it will be best if you have an attorney on your side who has dealt with similar situations in the past. Rather than make a mistake that can cost thousands of dollars or lead to even more legal problems, consult with us here at Nick Heimlich Law.

Don’t Be Afraid of Legal Action

Finally, if no solution can be found to the problem and you feel as if your partner may be committing wrongful acts about the partnership, don’t be afraid to seek legal advice and take action if necessary. Once you have spoken to us here at Nick Heimlich Law and discussed your situation in greater detail, we may find you have a viable case pertaining to such acts as:

  • Breach of contract
  • Fraud
  • Breach of fiduciary duty

Due to the complexities each of these situations can present when trying to dissolve a partnership, never assume you can handle this problem independently. Instead, we recommend consulting your CPA regarding any tax issues and scheduling a consultation with us as soon as possible to make sure your legal rights will be protected each step of the way.

If a business deal in which you have been involved now requires the dissolution of a partnership, speak to a commercial litigation attorney San Jose residents know well here at Nick Heimlich Law.

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