Sometimes business relationships turn sour and the unfortunate task of winding down and dissolution of the business needs to occur. However, generally speaking the property of the business should never be removed from the business property unless the partners have agreed to such removal (whether such agreement for removal is stated in the original partnership agreement or in a new agreement between partners). First, the business property belongs to the business and not the individual partners. Second, it’s possible that creditors have liens and secured interests in the property. The partners may have provided guaranties. If one partner removes assets it may be difficult to repossess such property and in any event the partners may still be liable for payments on the property removed. Always allow for the proper winding down of the business, which includes paying of liabilities and may require the selling off of assets and property of the business.
