dissolving a creative business partnership

[Spikesbigsister]

I wish to end my business partnership. I have run a small craft business with a friend for 3 years. She wishes to carry on trading, which I don't object to in principal. The problem is that all the designs, photographs, logo, packaging etc were designed and created by me. It feels strange to just hand all these over for her to continue profiting from them. I want to do the right thing and don't want to be churlish but would like to know what my rights are.

[Collaborate]

If you believe they have some inherent value you can sell her your share of the assets of the partnership.

As for dissolving the partnership, you really need advice from either an accountant (Mr Anchovy may be around?) or a solicitor qualified in business law. You shouldn't skimp by trying to rely on messages posted on a messageboard.

[Spikesbigsister]

Hello
Thanks for answering. We are a small hobby business and I am confident that we can come to a reasonable arrangement between ourselves. I would rather walk away and leave her everything than fall out about it or become embroiled in an undignified scramble for assets! It is more a case of how do you 'put a price on' the value of designs? And does she have a right to go on using my designs and products?

[Spikesbigsister]

Thanks Bran
I have got a lot of other stuff going on at the moment and it is really helpful to get input from others so thanks for replying.

[Lonecatwithkitten]

I am in the middle well nearly done of dissolving a partnership due to retirement. You are at some point going to need both a solicitor and an accountant. A solicitor to ensure that you have no ongoing financial responsibility to business so a small legal document is required. Secondly an accountant to split up the goodwill of the business on which capital gains tax maybe due though sounds like will be less than allowance, but should still be on tax return. Then return of partners capital ie reinvested profits that you have already paid tax on.
You should ensure that your partner who is remaining then changes the legal entity with HMRC from partnership to sole trader.
As always a lot of this is the unlikely event that something goes wrong and hopefully it will be necessary, but what you don't want is your partner to run up huge debts and then them come after you as the lose ends ate not properly tied up.