Q: How do we handle outstanding debt when disbanding a partnership?
A: Uncollected debt owed to you is not cause to prevent disbanding the partnership. You should divide the current assets now and the outstanding debt when you collect it. Alternatively, if there are numerous debts, the uncollected debts can be assessed at their current value, and divided; each partner will collect those in his share at their appropriate time. Some say that one party can also offer to sell his share, or buy the other party’s share, of the uncollected debt at a set price (gud o agud); (C.M. 176:20; Sma 176:53).
If the partners owe a debt, if each party is liable only for his half, the partnership can be disbanded and each party pays his half at the proper time. However, if both parties are liable for the entire amount, each can refuse to divide that amount and continue investing it until the loan becomes due (see Taz 176:20; Pischei Choshen, Shutfim 3:23-25).