Dissolution of a Legal Partnership

Recently, I sat across the table from a client who just couldn’t hold back her tears, as she realized that her business partner and her just couldn’t continue.

Relationships, both personal and business, can be tricky. At the beginning of the relationship, you feel you have found the perfect partnership in someone who shares your values, and you may even experience exponential growth and significant return. Later however, you come to the realization that for one reason or another, the partnership is just not working.

How do you dissolve your Partnership?

The structure of the partnership and the wording of your Partnership Agreement will dictate how easy, or difficult and costly, dissolving the partnership will be. If your business does not have any formal documents, Virginia law controls what happens in a dispute or dissolution.

Here are the steps you need to take:

  1. Revisit your partnership agreement and review your options. Review steps to dissolve the partnership as per partnership agreement.
  2. Identify all assets/liabilities and negotiate departure terms based on the above information.
  3. Draft a Dissolution Agreement.
  4. Notify suppliers, customers, and the authority

How our Law Firm can help: Consulting a Business Law attorney is vital to help you through the dissolution process, draft a dissolution agreement, protect you from any future claims, or represent you in ensuing litigation. Give my office a call at (540) 721-6028 if you have questions about how we may assist you.

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