Partnership Withdrawal Payment Considerations
This section defines how the withdrawal amount will be determined, the method of payment that can be used and the timing of the payment. As noted in the comments to the previous section, there are complicated tax and accounting considerations when withdrawing assets from a partnership. We highly recommend you adopt the guidelines outlined here unless you consult a partnership tax professional and are fully aware of the implications of any changes you are considering.
In the past, some clubs have charged a withdrawal "fee" or penalty to withdrawing members. As the assets the member is requesting are his own and do not belong to the club, we highly discourage any fees greater than the actual costs that might be associated with the withdrawal. Sometimes the reasoning behind requiring a penalty to withdraw has to do with not wanting members to come and go too quickly. The wording provided should help to make them realize when they join that they should plan to have at least a 1 year commitment to the club.
You can find more details about the specifics of paying and entering member withdrawals in the withdrawal section on our help page .
Disclaimer: statements are opinions expressed by bivio Customer Support and are not official statements from any government agency. These statements are not intended to replace professional legal or accounting advice. When in doubt, follow the advice of your lawyer or accountant who is familiar with your particular circumstances and the laws of your state.