Ramiro is dissociated from the partnership he helped form ten years ago. If his partners want to continue the business, what must they do? Does it make any difference if the dissociation was wrongful?
If Ramiro is dissociated from the partnership, his partners can, by unanimous vote, continue the business. They must, however, buy out Ramiro by paying him the value of his share of the business. The value is the greater of Ramiro's share of the proceeds if the partnership were sold as an ongoing business or if the partnership's assets were liquidated. It does make a difference in figuring the value of Ramiro's share, whether the dissociation was wrongful. If it was wrongful, the partnership can deduct from the amount it owes Ramiro any damages he caused the partnership. He could actually end up owing the partnership money.
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