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Please confirm your legal obligations in your locality before proceeding.When Partners Can’t or Won’t Pay: Whether through insolvency, inability or unwillingness, a partner’s failure to pay will shift liabilities to remaining partners, proportionate to their shares in the partnership.
Keep in mind that these are provided for informational purposes only and may not apply in all situations.
Distribute Remaining Assets: Partners receive distributions according to the balances remaining in their capital accounts.
If remaining assets after settlement are insufficient, whatever remains is typically divided between the partners proportional to the sizes of their capital accounts.
Only partners who have not wrongfully caused dissolution or have not wrongfully dissociated may participate in winding up the partnership's affairs.
State partnership statutes set the procedure to be used to wind up partnership business.
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