A property partnership (development) has been in existence for 5 years. A junior partner (circa 5%) wishes to leave the partnership. His original capital account of £20000 is now a negative due to accumulated losses (for which tax relief has been claimed). When the development has been completed there may be a profit or a loss depending on market conditions.
The partner wishes to leave the partnership to avoid potential claims against his assets and has asked for a valuation of his share.
As he's in negative equity already (but potential profits(?)) does his share have any value?
Assuming the other partners allow him to leave without making good his capital account, does his leaving have to dissolve the partnership?