Leaving a Partnership? Read This Before You Walk Away.
Thinking about exiting your business partnership?
Before you make that move, understand this:
Your exit could cost you everything if it’s considered “wrongful” under California law.
I’ve seen smart, well-intentioned business owners walk away from partnerships too early—only to find out they forfeited their rights to a buyout, profit share, or even their ownership interest.
Here’s the rule most people don’t know:
If your partnership agreement includes a set term (like 5 years) or ties your role to a specific project, and you leave early without cause, the law may consider your exit a “wrongful dissociation.”
That means:
You don’t get your buyout money until the original term ends
You may be liable for damages
You lose negotiating leverage when you need it most
This is why partnership exits are one of the most legally complex and emotionally charged issues I help clients navigate.
In this LinkedIn post, I break down the one legal rule that could make or break your exit strategy:
If you’re even thinking about leaving a business partnership, don’t go it alone.
Let’s review your agreement—and protect what you’ve built: www.lawpla.com
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