Rules on the departure of a partner due to a death or withdrawal from the company should also be included in the agreement. These terms may include a purchase and sale contract detailing the valuation process, or may require each partner to maintain a life insurance policy that identifies the other partners as beneficiaries. When entering into a business partnership, it`s natural to want to avoid unpleasant discussions about a future breakup that might never happen. No one wants to think about a possible breakup when a relationship is just beginning. However, business separations happen all the time and happen for many reasons. Each of these reasons can affect you personally and professionally. Therefore, regardless of the reason for the separation, the starting process and procedures should be set out in the Partnership Agreement. It is also advisable to include language that deals with redemptions and transfers of liability in the event of a partner`s disability or death. .