What are the rules for winding up a partnership?

In Delaware, the rules for winding up a partnership are governed by the Delaware Revised Uniform Limited Partnership Act (DRULPA). The first step for winding up a partnership is for the partners to come to an agreement. This agreement should outline how the partnership will be terminated and how assets and liabilities will be divided between the partners. Once this agreement is reached, the partners must make sure that all debts, liabilities, and obligations of the partnership are paid or otherwise settled. Any remaining partnership property should be distributed to the partners in the proportion stated in the partnership agreement. Next, any remaining assets must be collected and inspected, and a statement of partnership affairs must be prepared. This statement should include a list of all of the partners, their respective interests, and the general nature of all liabilities of the partnership. The statement should also include a list of any assets held by the partnership, both tangible and intangible. Finally, all of the business’s records and property must be delivered to the parties lawfully entitled to them. This could include documents such as accounts, contracts, deeds, and records. Partners must then sign a dissolution certificate, which states that the partnership was officially terminated. After all of these steps have been taken, the partnership will be officially dissolved.

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What are the rules for winding up a partnership?

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