Legal Question in Business Law in Georgia

Dissolving partnership

We have a home based business and my partner wants to end the partnership. that is very small. We don't have any assets, the only thing we have is a small amount of money in a business account. Because of ending of the partnership, if I want to continue with the business I will have to get a new license which costs $195,00. Could I charge her for this money since her quitting is the cause for this expense? Since we agreed to end the partnership I had to spend $112,00 in materials. She's asking me to add that back to the account so she'll get more money when we close the account . Do I have to pay her that money?


Asked on 4/09/09, 11:34 am

2 Answers from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Dissolving partnership

In negotiating the buy-out amount, I would certainly recommend that you include any reasonable expenses associated with the partner withdrawal and subtract them from the devised assets.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 4/09/09, 12:23 pm
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Dissolving partnership

While you might make the argument that the expenses of her withdrawal should be charged to her, she likely has an argument that absent an agreement otherwise, either of you could withdraw at any time and if one person wants to continue the business, they can at their own expense. She may ask why she should finance your future business? Of course, all these are issues that should have been decided prior to even starting the business.

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Answered on 4/09/09, 12:48 pm


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