A partnership continues until terminated. The relationship between the partners may change but the relationship between the partnership and creditors remains unchanged upon withdrawal or addition of a partner.
- All partners are jointly and severally liable for debts of the partnership. However, before creditors can proceed against individual assets of the partners, partnership assets must first be exhausted, or it must be determined that collection cannot be made from the partnership.
- A partner withdrawing from a partnership that continues business is liable for debts incurred by the continuing partnership for a period up to two years after withdrawal, unless the partner gives notice of withdrawal to creditors. Notice of that withdrawal may be written or oral. If the notice is oral, in addition to adequately documenting the employer file, notification must be obtained from the remaining partners in the form of an amended Status Report.
- An incoming partner is liable only for debts incurred subsequent to becoming a partner.
