What Happens To A Partnership's Assets And Liabilities Upon Dissolution?

A partnership is "the relation that subsists between persons carrying on a business in common with a view of profit" (The Partnership Act (Saskatchewan), RSS 1978, c P-3, section 3(1)). Partnerships can be formed in relation to any trade, occupation, profession or business. However, unlike corporations formed pursuant to The Business Corporations Act (Saskatchewan), RSS 1978, c B-10, a partnership is not a legal entity distinct from the partners of whom it is composed.

Partnerships may be created with little or no formalities. However, once formed, a partnership may be challenging to dissolve. Often, partners have close interconnections in relation to the business ventures being carried on by the partnership.