what is dissolution of partnership

Dissolution of partnership refers to the process of ending a legal relationship between two or more parties in a partnership. It involves a fundamental change in the relations among partners in a partnership, ending a governance-type relation among the partners in the partnership. Dissolution can occur due to various reasons, such as the death of a partner, mutual agreement, or involuntary dissolution. The process of dissolution includes reviewing the partnership agreement, discussing the situation with partners, preparing dissolution papers, closing accounts, and communicating the change to relevant parties. Liquidation of the partnership's assets also occurs as part of the dissolution process. A partnership dissolution agreement can help partners agree on the terms of dissolving the partnership, including the duties of each partner, timelines for ending the partnership, and roles each partner will play in the dissolution process. Once partners agree on the terms of dissolving the partnership, they must file a statement of dissolution.