My business partner has disappeared, am I 100% liable?

Business Law

My wife and I own a business with a business partner and we are based in Adelaide, Australia. Its a partnership and I am aware that this means that we have 100% liability for all debts that the business incurs. We made the decision at the start of this month that we would wind the business down due to the toxic working relationship. It looks like we may have to break the lease agreement on our rental agreement, and this will incur a fee of around $36,000. Our business partner is incredibly unstable (something that was not apparent at the time of starting this business) and he may 'disappear' when it comes time to pay the fee's. At the start of the business, a partnership agreement was written up and signed by both parties that he had a 60% stake in the business (profits and loss). My question is - Is there someway that we can ensure that he is liable for 60% of the debts the business incurs? or will this all come back to my wife and I if he just decides to leave? Will this affect our personal credit rating, if we fail to pay it off?

Posted Aug 29, 2016, 11:18 PM UTC · edited

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