Business partners often ask me if they
must have a buy-sell agreement.
After all, they argue, neither one of us
intends to sell. In fact, we're afraid that
having a buy-sell arrangement will
make it more likely to happen. Besides,
if one of us ever does decide to sell, we'll
work it out then.
Simply stated, a buy-sell agreement
specifies in advance the terms under
which assets will be distributed should
the status of the partnership change. As
to whether you need one or not, the
short answer is "No," because there's no
law that says you have to have a buy-sell
arrangement as part of your partnership
agreement. If you don't have a buy-sell
agreement, however,