question.jpgIn Business Law

What happens when a partner leaves the partnership?

There are times when a partner may decide that it is time to leave the partnership. Many times the partnership agreement will include details about how this is handled. The agreement may require that the partner first offer the remaining partners a buyout option, allowing them an opportunity to purchase his or her share/interest in the partnership before he or she tries to sell that share to some third-party. If the partnership agreement is silent on the issue of what happens when a partner leaves, most states’ partnership laws cover the issue. You should be very careful in this situation because the laws differ from state to state - however, in many states, the law says that the partnership automatically ends when any partner leaves.