What is Dissolution Agreement Drafting?
A dissolution agreement is a legal contract that officially ends a legal arrangement such as a business partnership or marriage. It specifies terms for how parties can navigate the situation, such as fairly dividing their assets.
To protect your interests, there are things to bear in mind when drafting a dissolution agreement.
Read the rest of this article for key terms to include in a dissolution agreement, how to draft it professionally, and how a qualified lawyer can assist you with the process.
What are Common Terms in a Dissolution Agreement?
A dissolution agreement usually contains the following key terms:
- Dissolution date. State the effective date on which the partnership ends.
- Winding-up process. Include the step-by-step process for how to close or end the arrangement, such as completing unfinished projects.
- Asset allocation. Explain how physical assets and real estate will be divided or sold.
- Intellectual property (IP). Include IP ownership information, such as for company trademarks and client lists.
- Debt settlement. Explain how existing debts and bank loans will be paid off.
- Confidentiality. To protect your interests, you can stop partners from sharing private information that could harm you or your company.
- General release of claims. Include mutual waivers to ensure that parties won’t pursue future claims against each other.
How Do You Draft a Dissolution Agreement?
When drafting a dissolution agreement, you should specify how to end the legal agreement and settle outstanding obligations. Here are tips to bear in mind.
Divide Assets and Liabilities
Make sure that the agreement lists how property, assets, and debts will be divided or settled when the agreement comes to an end. This ensures parties are aligned with each other and know what’s required of them.
Mention Outstanding Payments
There might be remaining expenses to pay at the end of the agreement which need to be handled. Specify the amounts of money that are due, including payment deadlines.
Provide Notice of Dissolution
In the case of dissolving a business partnership, partners will have to notify the state in which their business operates about it. However, they should also let other parties know, such as customers and employees. A lawyer can help you to follow all notice requirements.
Assign IP
Make sure that the agreement provides clarity about how IP will be assigned, such as regarding logos, service marks, websites, domain names, and software. This must be clear so that you minimize your risk of ownership disputes.
Establish Partnership Records Obligations
It’s important to specify which party will be responsible for maintaining partnership records, such as in the case of a business partnership. They should also give access to specific parties, such as former partners and auditors.
Address Custody and Support
In a marriage dissolution, your agreement should specify a plan for child custody and visitation, as well as child support, if required. Provide details so that there’s no ambiguity in the agreement. Spousal support must also be specified to prevent future disagreements.
Should You Hire a Lawyer for Dissolution Agreement Drafting?
While you might be able to draft your dissolution agreement, it’s in your best interests to hire a lawyer. They’ll ensure all the agreement terms are balanced, legally sound, and clear to minimize your risk of disputes.
A lawyer can help you during the drafting of your dissolution agreement by:
- Defining all dissolution terms. They’ll clearly define exactly how and when the partnership or other legal arrangement will end.
- Dividing assets and liabilities. They’ll establish how shared funds and debts will be distributed and settled between parties to prevent disputes.
- Resolving any outstanding obligations. If there are unpaid balances or unfulfilled commitments, a lawyer will specify them so that there’s no ambiguity between parties.
- Protecting your interests. By writing clear, specific provisions in the agreement, a lawyer will ensure that you minimize your risk of financial losses.
- Establishing dispute resolution methods. Should parties be unable to resolve a disagreement, a lawyer will include solid dispute-resolution methods for them to use, such as mediation and arbitration.
- Maintaining legal compliance. A lawyer will check that all clauses in the agreement are aligned with applicable legal requirements. They’ll ensure that all necessary approvals and filings are completed.
- Reviewing your agreement. If you’ve drafted a dissolution agreement, a lawyer can conduct an in-depth review of it to give you peace of mind about all its terms and provisions.
Where to Find and Hire a Lawyer for Dissolution Agreement Drafting
Finding and hiring a lawyer to draft your dissolution agreement doesn’t have to take time out of your busy schedule. Using an online legal platform such as ContractsCounsel makes the process a breeze, especially because you can find a lawyer without leaving your home.
ContractsCounsel is one of the biggest online legal marketplaces. It gives you access to a curated network of lawyers who have been vetted on the platform.
When you’re ready to ask a lawyer on ContractsCounsel to draft your dissolution agreement, here are the steps to follow:
- Go to the ContractsCounsel marketplace to post your request or project.
- Select ‘One-time project’ and ‘Create or update contract.’ If you’d prefer to ask a lawyer to thoroughly review your contract, select ‘Contract review.’
- Post your project for free. Mention some details to help you match with suitable lawyers.
- Wait for bids. Without having to search for lawyers, lawyers directly on the platform will send you bids.
- Review the platform’s lawyer data. You can go through extensive lawyer information, such as their location, field of expertise, credentials, years of experience, and even client ratings for previous projects the lawyers have completed on the platform.
- Select a lawyer to work with and hire them to draft your dissolution agreement for a flat fee.
