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There are many tales of great partnerships. In London, for example, the Underground is a shining example of what partnerships can do. Unfortunately, not all partnerships are made to last. Disputes and disagreements can sour relationships and lead to a separation. While leaving a partnership can become a savvy business move in the end, navigating the split can be quite taxing.

Just like in a divorce, there are a lot of things to resolve before dissolving a partnership. Here are some of the things you should and shouldn’t do when going through the transition.

SeparatingfromYourBusinessPartner

Do Review Your Partnership Agreement

Before officially saying goodbye to your partnership, make sure to take the time to look at your agreement. You need to refresh your memory about the different terms and provisions that rule over the dissolution of the partnership or of separating out of the partnership. Within the partnership agreement, you will find how much each member is entitled to in terms of the business assets. You might be entitled to a 50/50 split or another percentage if you decide to separate from a partnership of three or more.

Do Meet With Your Partner

It’s also important to schedule a meeting with your business partner. After having time to apprise yourself of all the separation options available to you, set a meeting with your partner to air grievances. This is the time when you can voice all your concerns and have your partner address them. Go into the meeting with the goal of resolving issues and not creating new ones. Decide on a neutral location, preferably away from your place of business.

Don’t Forget to File Articles of Dissolution

After finalising the separation, you and your partner should file an article or certificate of dissolution of your partnership. This is a legal document that would state that your business would no longer function as a partnership and would now change to a structure of your choice.  Licenses and permits would also need to be revoked or cancelled as well as DBAs or “Doing Business As” where applicable.

Don’t Neglect Due Diligence

Dividing up assets can be a tricky transaction. Make sure to have a good working knowledge of how much your company is worth and how much of those profits can be given to you. Hiring forensic accountants in London, such as those at http://www.frenkels.com/ can be a step in the right direction. They can advise you on how much you stand to gain from separating from your partner and even aid you in any business-related disputes.

These vital dos and don’ts should save you a lot of time and money when in the process of dissolving your partnership. In worse case scenarios, messy splits end up in court. As much as possible, keep disagreements out of the courthouse and between you and your partner; but, make sure you aren’t getting the raw end of the deal either. Try and make your separation as amicable as possible. You wouldn’t want to burn bridges you may need at a later date.


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