Sample Business Separation Agreement: What You Need to Know

When a business partnership or joint venture comes to an end, it`s important to have a legally-binding agreement in place outlining how assets, liabilities, and ownership stakes will be divided. A business separation agreement is a document that will help protect both parties from any misunderstandings or disputes during the dissolution process.

Here`s what you need to know about creating a sample business separation agreement:

1. Start with a clear outline

Before you start drafting your agreement, it`s important to have a clear understanding of what needs to be included. Every business separation agreement will be different, but some key areas to cover include:

– Business assets and liabilities

– Transfer of ownership and intellectual property rights

– Employee and customer contracts

– Confidentiality and non-compete clauses

– Repayment of debts

2. Consult with lawyers

Creating a legally-binding agreement can be complex and challenging. It`s highly recommended that both parties seek legal representation when drafting their separation agreement. This will ensure that the agreement is valid and enforceable in court if necessary.

3. Get it in writing

A verbal agreement may seem sufficient, but it`s essential to have everything in writing. Make sure that both parties sign a copy of the final agreement, and keep it in a safe place for future reference.

4. Review and update regularly

Business circumstances can change rapidly, so it`s important to review the separation agreement regularly to ensure it`s still valid and relevant. Don`t hesitate to consult with lawyers if any changes need to be made.


A business separation agreement is an essential document that should be carefully drafted to ensure that both parties are protected. Consult with lawyers, get everything in writing, and review regularly to ensure that your agreement remains valid and enforceable. With a well-written separation agreement, you can ensure a smooth transition during the dissolution of a business partnership or joint venture.