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HOW IT WORKS
How it works
There are many reasons for ending a business partnership, but whatever they happen to be, a Liquidation Agreement can help make the process easier. With this document you can outline the details of the end of a specific relationship. A Liquidation Agreement can help you and your partners settle things fairly.
A Liquidation Agreement is an agreement between two or more partners to end a business partnership. By entering into this agreement, you will not immediately terminate the partnership, but instead the partnership will continue until the "winding up" of the business is concluded. "Winding up" is the process of paying off all debts of the business, distributing the remaining assets among the partners, and terminating the partnership's legal existence. If the original partnership agreement doesn't outline the terms of liquidation, a Liquidation Agreement may help to prevent disputes about the partners' entitlements and responsibilities.
Other names for this document: Partnership Dissolution Agreement
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This document is sometimes called a Partnership Dissolution Agreement.
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