Usually, most dissolutions of business partnerships turn out to be ugly, and that’s due to the lack of agreement, communication and transparency between partners before entering into the said agreement. That’s why it is highly recommended to consult legal help throughout the whole process, and especially at its end.

When terminating a business partnership, parties should always review the original business agreement first, as it should mention the exact prescribed procedures of dissolution to follow. However, there could be agreements where dissolution terms are not mentioned

In that case, partners should communicate on how to dissolve the business (how assets and liabilities should be divided). This is when things could get messy if not properly handled by an attorney. In addition, by applicable law or according to terms of the partnership agreement, a formal written notice must be provided to other partners, which represents the formal process of the initiation of the dissolution.

In addition, you should have an attorney draft you a formal dissolution agreement to deliver to the other partners as well, that should address crucial issues:

• Outstanding contractual obligations
• Liquidation of assets and releases of liabilities
• Intellectual property assignment (retention of distribution of intellectual property developed under partnership)
• Statements of dissolution: each state has its own requirements. To demonstrate this, in New York and New Jersey, limited partnerships must file formal dissolution paperwork, while general partnerships do not.

Parties should notify stakeholders of this decision through official business channels or public notices.

Overall, having legal counsel by your side in the process of terminating a business partnership should help you navigate somewhat of a smooth dissolution process with minimum risks on personal and professional assets.