What are you responsible for after the dissolution of a partnership?
My husband and I divorced 20 years ago, 4 years ago we sold a business property that we were 50/50 partners in. I filed my taxes every year and always gave a copy to my ex-husband so he could file his portion of the taxes owed on the business property. Unbeknownst to me, he has not filed taxes in 10 years and is now coming to me and demanding that I give him copies of all of my previous tax returns regarding the property that we sold four years ago so that he can go back and pay his taxes. The partnership dissolved when the sale of the building went through in November of 2016. I hired a CPA and filed and paid my taxes accordingly. I gave my ex-husband a copy so he can file his taxes accordingly. Again, he is now telling me he never did this and is requesting that I give him everything I have from 2010. We were divorced then.
Am I legally obligated to have to go and find all of this stuff and give it to him even though I always filed and paid my portion of the taxes for the business? And we sold the business and dissolved our partnership in November of 2016. I am afraid that my ex-husband has evaded his taxes for the last 10 years and is now trying to take me down with him even though I always filed and paid accordingly.
Dissolution of partnership means that the partnership business is coming to an end.
There can be various reasons for it like death of a partner, completion of the purpose for which partnership was formed, bankruptcy, partners may feel the need for closure of the business or they may not want to continue it any further etc.
Its effect are, that it will lead to sale of the assets of the partnership firm, all the liabilities will be settled, books of accounts will be closed, profits or losses will be shared by the partners as per their agreed ratio. And in last if anything remains it will be mutually shared by the partners in their profit sharing ratio.
The dissolution needs to be carried out legally as per the prescribed rules and regulations.
The claims of all the parties are settled.
The partners receive their respective share and bear the losses/gains as per the pre decided agreement of partnership.
Dissolution of partnership is a very vital topic and its effects are such that they influence all the parties associated with the partnership firm. So comprehensive knowledge on this topic can really help the students a lot.
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