What happens in a partnership when one wants out?

[fastfredracing]

A Partnership with assets? Any of you gone through this?

[Nostril Cheese]

Lawyer time.

[Rick V]

Gonna repo a Ford 5.4?

[Halm]

BTDT. Better have it spelled out before you get to that point. Otherwise ugly and expensive.

[johnsjmc]

Originally Posted by Halm

BTDT. Better have it spelled out before you get to that point. Otherwise ugly and expensive.

Like a divorce without a pre-nup?

[Halm]

Originally Posted by johnsjmc

Like a divorce without a pre-nup?

Never been divorced, but watching friends do so, I would agree with that analogy.

[dad911]

BTDT also. Six figures in lawyers and arbitrators..... try to work it out before it gets ugly, if it's not too late.

I guess your written agreements don't have an endgame?

[saxen]

Keep calm and work it out now- if it's too late lawyer up-

[LeeH]

Originally Posted by Halm

BTDT. Better have it spelled out before you get to that point. Otherwise ugly and expensive.

Yep.. should have a partnership agreement in place that spells out what happens.

[jamesnmlaw]

Be careful of any debts for which you are personally obligated. The partnership can easily be terminated but personal obligation of the debts of the partnership means you're screwed. Think of a partnership like a divorce. The MSA says ex gets the car and is to make the payments on the note but a year after the divorce the ex stops paying and the car gets repo'd. If you're obligated on the note the note holder can come after you. Your recourse would be only to sue the ex for the loss. Good luck is the ex is judgment proof (i.e. files BK or is dead). Happens all the time.
Bottom line: don't let go your partnership interest unless the partnership debt is paid or otherwise restructured (make the ex get a new car note only in her name).

[RWebb]

browse these before seeing an attorney:

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&ie=UTF-8#hl=en&tbo=d&sclient=psy-ab&q=dissolution%20partnership%20pennsylvania&oq=&gs_l=&pbx=1&fp=10c21c28c454948f&ion=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&bvm=bv.41867550,d.cGE&biw=1188&bih=642

[KFC911]

Wow...messy, if this is your "rental bidness" and the properties aren't owned outright imo. I'd try my best to "split" without "hard feelings" and keep the legal system out of it. Assuming this is your long time friend...sit down and work out a solution/split that's "fair" and TOTALLY removes each's future debt obligations with the other partner. Messy, messy, messy situation . Good luck!

[mb911]

I was in a partnership at one point and wanted out the advantage was I new the product better then my partner and he relocated just far enough away that he got frustrated and wanted to sell out I bought him out at a mutual agreed price based off of sales for the next calender year and he kept what was in his shop I kept what was in mine and it worked out. Be careful and patient

[cornemuse]

Three of my bros & myself are in a partnership (real estate) & spent a lot of hours going over (adding, modifying, etc.) terms of our partnership. Our lawyer said it was pretty much bullet-proof. The youngest of us is 60 yrs. old, & oldest 72. Its not so much for profit, its property our uncle bought during WWII. We ALL get along. -corne-

Addition- I wouldnt do this with the rest of the family! & wouldnt do it with either friends OR strangers. -c-

[techweenie]

Arbitration is your best route. Failing that, you and the partner will lose and the lawyers will win.

Don't ask how I know this.

[Cannonball996]

it does not have to be a big mess, I have been in both sides of this position, and it can be very simple as long as both partners can agree the value of the assets. it can be a very simple buy out, or liquidation, or one partner can sell his position to a new partner.