My partner and I dissolved our business through a deed, but my partner is still trading under the old business and accumulating debts while also registering a new business. We don't have a formal partnership agreement and my partner has no assets in their name. A lawyer suggested sending a letter of demand, but I'm wondering if there are other options. Can you help?
Our business website has a great page on what to do when you Close your business.
I’d recommend you review the steps to ensure they have all been complete. For us step 6 is the important one.
The ABN and tax roles should all be cancelled from the date the partnership was dissolved. The cancellation date can be backdated and either partner can action the cancellation.
Were there figures reported on Activity statements after the date the partnership has dissolved? You can look at an amendment and the partner continuing would need to report those figures under a new ABN.
Either partner can amend the Activity statements.
Regarding the accumulation of debts under the partnership business, this is a legal matter. We recommend getting independent legal advice.
Our business website has a great page on what to do when you Close your business.
I’d recommend you review the steps to ensure they have all been complete. For us step 6 is the important one.
The ABN and tax roles should all be cancelled from the date the partnership was dissolved. The cancellation date can be backdated and either partner can action the cancellation.
Were there figures reported on Activity statements after the date the partnership has dissolved? You can look at an amendment and the partner continuing would need to report those figures under a new ABN.
Either partner can amend the Activity statements.
Regarding the accumulation of debts under the partnership business, this is a legal matter. We recommend getting independent legal advice.
2 Dec 2025 · 6 min read time
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