Legal Question in Business Law in Massachusetts

Dissolving a Partnership

My husband has owned a vending machine business (in name only) with a friend of his. He stopped working the business about 10 years ago and his friend continued on his own because it could not support 2 people. Due to medical problems, his friend cannot work the business anymore. If he defaults on taxes or payments is my husband liable for those bills? How can he protect himself at this point? He has little contact with his ex- partner but he is unsure how to approach this dilemma. He put in an initial investment of $15,000.00 when the company started up, but hasn't drawn a salary in about 10 years. Should he just get his name removed from the company?


Asked on 8/22/03, 11:56 am

1 Answer from Attorneys
Lawrence Graves Coolidge & Graves PLLC

Re: Dissolving a Partnership

Not a good situation at all -- general partners in a partnership have unlimited personal liability for the debts of the partnership. He should immediately consult with a lawyer familiar with insolvency law and business bankruptcy issues.

Best wishes,

LDWG

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Answered on 8/25/03, 11:07 am


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