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Partner Separation Agreement for United Arab Emirates

Partner Separation Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the separation of business partners and dissolution of their partnership interests. This agreement outlines the terms and conditions of the separation, including asset division, liability allocation, financial settlements, and ongoing obligations. It ensures compliance with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and other relevant UAE regulations, while addressing crucial aspects such as confidentiality, non-compete provisions, and dispute resolution mechanisms specific to UAE jurisdiction.

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What is a Partner Separation Agreement?

The Partner Separation Agreement is a crucial document used when business partners in the UAE decide to end their business relationship or when one partner wishes to exit the partnership. This document, governed by UAE law, particularly Federal Law No. 32 of 2021 and related regulations, provides a detailed framework for managing the separation process. The agreement covers essential elements including financial settlements, asset division, ongoing obligations, and dispute resolution mechanisms. It is particularly important in the UAE context where business partnerships often involve specific local ownership requirements and commercial licensing considerations. The Partner Separation Agreement must comply with both federal and emirate-specific regulations, including any applicable free zone requirements, and may need to address specific provisions related to local partner arrangements.

What sections should be included in a Partner Separation Agreement?

1. Parties: Identification of all partners involved in the separation, including their full legal names, addresses, and any relevant registration numbers

2. Background: Brief history of the partnership, reason for separation, and current status of the business

3. Definitions: Definitions of key terms used throughout the agreement

4. Effective Date: Specification of when the separation takes effect and any relevant transition periods

5. Financial Settlement: Details of the financial settlement between partners, including capital accounts, profit distribution, and payment terms

6. Asset Division: Comprehensive breakdown of how partnership assets will be divided or transferred

7. Liabilities and Debts: Allocation of existing liabilities and debts between partners

8. Client and Contract Assignment: Agreement on the division or transfer of existing clients and contracts

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Non-Compete and Non-Solicitation: Restrictions on future business activities and client/employee solicitation

11. Release and Indemnification: Mutual release of claims and indemnification provisions

12. Dispute Resolution: Procedures for resolving any disputes arising from the agreement

13. Governing Law: Specification of UAE law as governing law and relevant jurisdiction

14. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Partner Separation Agreement?

1. Intellectual Property Rights: Required when the partnership owns or has developed intellectual property that needs to be allocated

2. Ongoing Projects: Needed when there are incomplete projects that require handling post-separation

3. Employee Matters: Include when the partnership has employees whose status needs to be addressed

4. International Operations: Required for partnerships with international business operations or assets

5. Tax Matters: Include detailed tax provisions when there are significant tax implications

6. Property Leases: Required when there are commercial property leases that need to be assigned or terminated

7. Insurance Matters: Include when there are insurance policies that need to be addressed

8. Bank Accounts and Banking Arrangements: Required when there are complex banking arrangements that need special attention

What schedules should be included in a Partner Separation Agreement?

1. Schedule 1 - Asset Inventory: Detailed list of all partnership assets and their agreed values

2. Schedule 2 - Financial Statements: Current financial statements and balance sheet of the partnership

3. Schedule 3 - Client List: Complete list of clients and their allocation between partners

4. Schedule 4 - Outstanding Liabilities: Detailed list of all partnership liabilities and their allocation

5. Schedule 5 - Intellectual Property Register: List of all IP rights and their disposition

6. Schedule 6 - Payment Schedule: Detailed schedule of any payments to be made between partners

7. Appendix A - Resignation Letters: Template or copies of formal resignation letters from relevant positions

8. Appendix B - Transfer Documents: Forms and documents required for transferring assets or shares

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions









































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Relevant Industries

Professional Services

Real Estate

Construction

Trading

Technology

Manufacturing

Retail

Hospitality

Healthcare

Financial Services

Consulting

Media and Entertainment

Education

Logistics and Transportation

Relevant Teams

Legal

Finance

Compliance

Corporate Governance

Operations

Business Development

Administrative

Risk Management

Strategy

Executive Leadership

Relevant Roles

Managing Partner

CEO

Business Owner

Legal Director

Chief Financial Officer

Corporate Lawyer

Business Development Director

Managing Director

Company Secretary

Finance Manager

Compliance Officer

Operations Director

Board Member

General Counsel

Partnership Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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