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What is the procedure for removing a partner from a partnership under California partnership laws

San Diego, CA |

In case of simple partnership of 4 partners 1 partner never contribute to the partnership while the others are working and putting thier tme.
Beside a regular partnership form signed in escrow company there in no aggrements as far as buyout.
How can I fire partner.How do you calculate the buy out value

If that non active partner is also the wife .and in a divorce case ,the Husband paid this share from money of his property owned prior to marriage.What is the calculation as far as her share value

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Attorney answers 1


You can't "fire" a partner. Partners are owners not employees. If the partnership agreement is silent on the valuation of partnership interests, it will be necessary to negotiate with the non-contributing partner. It may be helpful to get a valuation of the partnership business. The value of the non-contributing partner's share is less than one-quarter of the value of the whole, because a minority interest in a business has no "control" over the business operations as the non-contributing partner can be out-voted by the other partners. If you can't reach an agreement with the non-contributing partner, it may be necessary to file suit to dissolve the partnership.