Partnerships FAQs Back to All FAQs

What happens if a partner leaves the partnership?

Before you go into business together, you and your partners should decide what will happen to the partnership when one partner retires or wants to leave the partnership for any other reason, such as a conflicts of interest or direction, divorce or bankruptcy. You might feel like you're being overly cautious or pessimistic, but it almost always makes sense to include "buy-sell" provisions in your partnership agreement to deal with these issues.

A partnership agreement is the best way to prevent resentments and serious problems (including messy lawsuits) from cropping up later on. The partnership agreement is the core of the partnership relationship and defines the roles and obligations of each partner.

Click on the Partnership Agreement tab above to draft your agreement.

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